Amor Group Annual Report 2011


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'32% jump in revenues drive profits up 17.5%'

Amor Group, leading international business technology company, has published its final results for the 12 months to 31 December 2011.

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Amor Group Annual Report 2011

  1. 1. Interactive Report This interactive pdf allows you to easily access the information that you want, whether printing, searching or going directly to a specific section by using the bookmarks on the left side. We have included links that direct you to You Tube to play videos when clicked. Navigation return to the contents page print page search document previous page Acrobat next page This PDF will only display properly using Acrobat version 9 or newer. “Amor Group is one of the few companies in the sector today that is consistently delivering on projects that puts passenger data at the heart of airport operations. Due to their thorough understanding ofGlobal market analyst andindustry research experts customer requirements and commitment to technology innovation, Amor is evidently a preferred supplier for this type of solution for airport operators in Europe, the Middle East and beyond.” Diogenis Papiomytis Principal Consultant, Aerospace & Defence, Frost & Sullivan
  2. 2. contents 02 CEO’s Report 04 05 The Last Three Recent Performance Years and Outlook 06 Financial Review 082011 Operational Performance 11 13 15 Energy Transport Public Services 16 18 Technology Forecast Complete IT Managed Service Solution 21 Director’s Report and Financial Statements 01
  3. 3. click to play movie CEO’s Report I am pleased to present Amor’s annual report for the financial year ended December 2011. We’re proud to have delivered our fourth consecutive year of strong earningsChief Executive Officer growth in an economic environment that continues to be unpredictable. We have succeeded I believe, because we have a singular vision, a clear strategy and core operating strength.John Innes In our vision we emphasise “business technology” because that is the essence of what we do – the focus is on business first, then the underlying technology. We don’t run IT services, or deliver IT projects here at Amor! Nor do we sell standalone IT products; rather we run business services and deliver business projects. Our focus is not on the technology itself, but on how that technology can help run more efficientJohn has over 25 years leadership airports, hospitals, schools and offshore operations. Our customers just expect us to “getexperience in the oil and gas and IT” – and we do!information technology sectors.During this time he developed expertise Our strategy is to increase our recurring revenues, international presence and intellectualin corporate strategy, mergers and property (IP). This strategy creates shareholder value, informs how and where we workacquisitions, P&L management and and how we develop the business. I am delighted to report significant progress in allsales and marketing. In 2005 John these key metrics over the last year as detailed in the Financial Review.sold the Aberdeen based oil andgas information services specialist In 2011 recurring revenues were up with a record all time forward order book -business, Pragma, to Sword Group more than double this time last year. Product revenues were also up as a consequence ofin a multimillion pound deal. He targeted R&D and M&A.remained with Sword, overseeingnumerous acquisitions and managed During the year we opened a new office in the Middle East and increased revenues fromthe global solutions business which had the US, Scandinavia and mainland Europe. Our export revenues have grown significantly,a combined turnover of £100m. In May a trend we expect to continue in the years ahead.2009 he led the management buy outof Sword’s UK solutions businesses in a£30m transaction to form Amor Group. se ic rv se rt po gy ic ns er bl tra pu en 02
  4. 4. click to play movieIn our Transport business, the acquisition of the FS Walker In our Public Services sector we have benefitted from aHughes (FSWH) Chroma Airport Operational Database Suite Government agenda geared towards increased SME participationaugmented our existing passenger-centric product set and in the technology supply chain. We have seen the abandonmenthelped build accelerated international recurring revenues in of national programmes that have proven costly and complexnext generation collaborative airport operations. Following the to implement in favour of correctly specified and more readilyacquisition of Invisys our Public Services business invested in deliverable work scopes. Amor can and will deliver greater valuefurther development of our clinical portal that provides a single for the public purse.view of the patient journey. However, no business exists in a vacuum and we are not immuneWe benefit from long term customer relationships, characterised to risk. We are, like every business, impacted by the uncertainby trust and mutual value, a growing brand value and our unique nature of the global economy, particularly the Eurozone. WeIP. Our investors continue to be supportive and to help facilitate continue to focus rigorously on delivering well, typically againstaccess to well-priced capital to support our growth. larger and more complex engagements. We systemically focus on management of our working capital. We have investedPeople sometimes ask me why we focus on the Energy, Transport significantly in 2011 in our back office people, processes andand Public Services markets. The answer is that we have built 20 systems to ensure that we are able to support our strong andyears of domain expertise and track record within those markets, continued top line growth.and we continue to see very attractive growth opportunities ineach. Our 2012 organic revenues will scale to £55m with earnings undiluted at c. 15%. Over half of our revenue for 2012 is alreadyThe global demand for energy continues unabated. On the UK contracted and 30% derived from proprietary software productContinental Shelf demand is perhaps most visible in the forecast sales that in turn increase our forecast exports to £11m.2012 record level of £11.4bn of CAPEX whilst a strong andsustained oil price continues to drive international expansion. At Amor we genuinely feel that this is our time. Please enjoyThese trends in turn drive demand for the critical operational reading our annual report. I look forward to catching up withsupport services that Amor provides. you soon!In Transport our main focus is airports where we see tremendousgrowth opportunities particularly in the Middle East and AsiaPac, where there is significant new build and infrastructureinvestment. Our Transport business is product focussed. It John Innes, CEOhas benefitted from the group’s focus on R&D and acquisitioninvestment, and is readily able to scale to address the globalopportunity. 03
  5. 5. The Last Three Years ITIL sk, our 24 10 0 x7 Awarded hel nched er 2 Aipo Awa nd ope ist b rts a Ass Lau cem rded ned £15m ma De pde gy, gy £6.8 10 olo ner contract Januar rvices 20 chn al e m c e in M 2010 en er Te lob naged se CO offic ha ob DW r g ies ontr Ac g ai nc ct red g ou bilit qu rpo in with AS O ui in pa act iddle E Ma th Duba t y 2011 ire rt Aq tend s ca th 0 uetoo t suite d F op wi y2 ex rvice 01 l S W era r r 2 y for B r airpo Ju ker H ns su se e 011 al tio mb lusivit of ou ne ug ite Spa pte c rt Se red ex as pa 20 hes, as rro i 11 ws cu logy Se no ou tso urc Jun tech ed e 2 IT t 01 oA 1 10 n NA TS mo May 20 m in our Aberdee sele Aug r Invest ed £1 hos ct Am ust tre, Assu re clo ud- t an or 20 Data Cen bas d m to de 11 ed a l infr nage iver, January 2010 ast new ruc Established Amor LLC and USA tur Se e office Awar ptemb ded £ er 2 to de 18 01 liver .5m cont 1 eProc ract Scotl uremen and S t ervic e October 2 Acquired Invi 011 sys and openLondon office ed to extend reac h in healthcare 2011 2009 MBO 2009 Amor reate p Grou t cem rde trac er Amor to c 2009 09 procuremen r the Government rum 09 reviously May amework De al awa m con 20 September 20 b d the IM Energy Fo 9 August £3. t service (p leted tions UK) fr u Comp Ofq Selected fo Buying Solu Launched 04
  6. 6. Recent Performance and Outlook £107.6M£110M Financial Performance£100M Profit* £M £84.9M£90M Revenue £M£80M£70M £65.1M£60M£50M £45.1M£40M £33.9M £29.9M£30M £16.1M£20M £12.7M £9.7M £5.8M £6.6M£10M £5M 2009 2010 2011 2012 2013 2014 * Earnings before interest, tax, depreciation and amortisation (EBITDA)Revenue Profile % Annuity Product International100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 57% 60% 54% 60% 60% 51% 50% 50% 43% 50% 39% 40% 34% 40% 34% 40% 34% 29% 30% 25% 26% 30% 30% 20% 20% 20% 20% 11% 13% 10% 7% 6% 6% 10% 10% 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 05
  7. 7. Amor BBQ Bake off Financial Review The group delivered another strong financial performance in 2011, with revenues growing by 32% to £45m (2010: £34m). These figures include revenue of £1.8m from six monthsChief Financial Officer trading of FSWH, which was acquired at the end of June 2011. The remainder of the revenue growth was organic (up 27% on 2010) with our Energy, Transport and Public Services sectors all growing their customer base in the year.David Blyth Significantly, in line with our strategy, we successfully increased the percentage of recurring revenues from 39% to 51% in the year. The group now expects to have recurring revenues of approximately 54% of our annual total revenue in 2012. Similarly, we continued to grow our international footprint, with £6m (13%) of the David is a Qualified Chartered group’s revenues generated outside the UK, representing a 150% increase over 2010. Accountant with more than The strengthening of our product offering via the creation of the Chroma product suite, 20 years post qualification which has aligned our own IP with that acquired from FSWH, underpins much of this experience. He trained and international growth. qualified with Grant Thornton in Glasgow before moving to Product revenues, based on our owned IP, amounted to 25% of our business in 2011 and Saudi Arabia with Ernst & Young. we plan to grow this to 30% in 2012. Returning to a role as Group Accountant for Lilley Construction, EBITDA grew 14% to £6.6m in the year (2010: £5.8m). Excluding £0.4m related to he then moved to IT solutions restructuring costs and other non-recurring items, normalised trading EBITDA was £7m, and services provider Real Time 15.5% of revenue. This compares to normalised EBITDA of £6m in 2010 (17.5%). Engineering Ltd as Financial Controller. David was appointed Movement in the EBITDA margin is in line with the change in the revenue mix, resulting CFO of Sword’s global solutions business in UK and Europe in from the increase in the number of large managed services contracts delivered during 2006, and CFO of Amor Group in the year. These include provision of equipment and other third party costs and services 2009. at a high monetary value, but low pass through margin. It is important to our customer base that we manage provision of these components, as well as providing our IP and professional service wrap around. This enables customers to benefit from the full Amor service offering. The gross margin delivered on our own IP and related provision remains strong at an average of 46%. 06
  8. 8. ist Fergus Ewing Launch of Ass MSP visits Am or’s HQProfit on ordinary activities after deduction of depreciation,amortisation and interest charges was £4.9m, with a resultanttax charge of £1.6m. This effective tax rate of 32.6% compareswith a standard composite rate for the year to December 2011of 26.5%. The higher effective rate results mainly from the taxtreatment of amortisation of goodwill.We continued to invest in the growth of the business in 2011.We further developed our IP for airports and purchased IP in thePublic Services Health sub-vertical. Both of these investmentswere made from funds generated from operations. The FSWHacquisition was funded mostly via term debt, which led to anincrease in our group net debt to £33.4m (2010: £27.4m). Weare pleased with the inflow generated from operating activitiesof £5.5m, delivered despite a tough trading environment.David Blyth, CFO 07
  9. 9. click to play movie 2011 Operational Performance I’m delighted that Amor has delivered over 30% revenue growth in the last year, a significant achievement given the on-going economic crisis in Europe and challengingChief Operating Officer trading environment in many of our markets. It hasn’t been easy; we have worked relentlessly to ensure we satisfy our customers so we retain their business against a continued backdrop of UK, European and world economicScott Leiper difficulties. We’ve had to innovate both technically and commercially to drive value for money and truly create a better business outcome for our customers. The result has been an increase in our forward order book to £70m having secured a number of multi-year deals with new blue chip customers, highlighting the value which customers put on our services to help them run their businesses. Scott has held a variety of roles across oil and gas organisations and multi-national IT corporations For example, Sparrows, the oilfield engineering service provider, has fully outsourced its IT including programming, services to Amor to ensure the delivery of robust business processes, which will help them programme management, sales with the delivery of their operations over the next five years. director and business unit director. In his role as operations director Similarly for Dubai Airports, we secured a five year contract to deliver a system that enables with Sword, he was accountable for the business plan delivery of a superior understanding of passenger processing at the airport, resulting in improved several business units across the service levels, enhanced strategic planning and enriched terminal operations. UK and US amounting to over £30m in revenue. His core skills Elsewhere, for the Scottish Government we are managing and delivering the flagship are in business growth planning, eProcurement Scotland Service (ePS) which is worth £18.5m to the group over the next four sales and marketing strategy, years. This project will help drive spend via the ePS system and will generate substantial business recovery and due diligence. cost savings through efficient, effective electronic procurement. 08
  10. 10. Charity Ceilidh eProcurement Headquarters Scotland Cont ract SigningAs a business technology company our focus is on combining Amor has a fantastic team which is passionate about ourour deep knowledge of the Energy, Transport and Public Services business and our customers. We have a strong product set tosectors with IT expertise, to create a better business outcome for drive our internationalisation agenda and a range of services toour customers. Our 2011 customer survey tells us that we are drive an improved business outcome for our customers. We willcontinuing to make positive progress; more than 98% of our continue to grow because of these tremendous attributes. I’mcustomers believe we understand their business (up from 86%) excited by the challenges and successes 2012 will bring.and 95% believe we add value (up from 89%) to their business. Scott Leiper, COOOur core operating strength is down to our people and our highperformance culture. Not only does this cultural focus providemore opportunities for career fulfilment but it also reinforces thelink between personal contribution and company performance.The total number of employees has increased from 441 to 569over the last year, creating over 100 new jobs. During this periodwe made a significant investment in our human capital in orderto deliver on our vision of being the best employer in our market.Following our initial Denison staff survey in 2010, we establisheda number of cross functional teams to analyse the results andimplement improvements. We have invested £500,000 in theseimprovements and implemented a state-of-the-art personaldevelopment programme along with a new employee flexiblebenefits scheme. Whilst the results of our 2011 Denison staffsurvey show improvements in all areas, we are continuing tofocus on the areas of highest impact to drive forward our goalof creating a single high performing organisation. 09
  11. 11. “At Sparrows we focus on setting, and raising, global standards in everything we do. This requires a structured global presence underpinned by reliable technology. Amor Group is integral to developing and delivering our long term IT strategy, involving a phased approach toGlobal leading oil service project work while ensuring our day-to-day operations run smoothly withprovider services such as their 24/7 support line.” Doug Sedge CEO, Sparrows Offshore Group Limited 10
  12. 12. click to play movie Energy The energy industry, particularly with respect to independent oil and gas operators and service companies, is an exciting market to be in right now. Worldwide the industry is booming and the opportunities on our doorstep are huge, with 12 – 24 billion barrel of oilEnergy Sector Director equivalent (BOE) remaining for extraction from the UK Continental Shelf (UKCS) alone. This growth is triggering demand for technology services that deliver value through practical solutions across our customers’ operations.Dave Bruce Our core business is delivering managed services that add value in a strategic way to energy companies, by freeing them of the burden of running their IT infrastructure and allowing them to focus on their core business. In 2011 we continued to focus our attention on broadening and deepening our market proposition, particularly in those areas where we can add the most value to the customer With 20 years in the oil and relationship. gas and IT industries, Dave has worked as a consultant for a Specifically, this meant focusing on developing our managed services, information number of operators including, management and process control security offerings for the oil and gas sector. We invested Shell Expro, Mobil and Amoco in our front line services and enhancing the strength of our delivery team to ensure that we on technical delivery, operations continue to provide a compelling and market-leading level of customer service. and project management. Since joining Pragma in 2003, and We have also sought to fully leverage the benefits of the acquisition of DW Technology then Amor in 2009, Dave has in 2010, bringing on a number of new customers as a direct result of the acquisition and worked closely with our strategic generating incremental revenues through cross selling across the enlarged customer base. customers and secured a number of new long term contracts. We are developing our international reach to meet our customers rapidly expanding global demands and will continue to invest throughout 2012 and beyond, in order to ensure that we further broaden our capabilities. Dave Bruce, Energy Sector Director es ic rv se tr po y ic g ns er bl tra pu en 11
  13. 13. “Dubai Airports has a strategy to be the world’s number one airport for service. Working with Amor allows us to deliver on that aspiration.”One of the world’s busiest and Caroline Petersfastest growing airports Operational Research Manager, Dubai Airports 12
  14. 14. click to play movie Transport This year was an outstanding year for the Transport team and we are confident that our strong sector focus and market presence will continue to deliver success in 2012 and beyond.Transport Sector Director The key highlight was successfully cementing our position as the world’s leading expert in airport service level monitoring systems as a result of securing new customer deployments atMartin Bowman leading airports such as Geneva, Barcelona and Dublin, not to mention winning the world’s largest real-time service delivery measurement project at Dubai Airports. 2011 also saw the Transport sector significantly enhance its airport portfolio through the acquisition of FSWH and its Chroma Airport Suite. Already utilised corporately by Manachester Airport Group (MAG), Chroma cemented its position as the UK’s leading airport operating system with its deployment across BAA Airports division, including Edinburgh, Glasgow and Manchester. I’m delighted to report that we have already made significant progress with A specialist in providing IT consolidating our product offerings into a unified Chroma Next Generation Airport Suite and solutions to the aviation we look forward to releasing further new Chroma products in 2012. sector, Martin has a wealth of experience in business growth Looking forward, we will continue to pursue our ruthless focus on delivering innovative in the international aviation technology solutions that both enhance the efficiency and effectiveness of airports, whilst at market. Prior to joining Amor the same time delivering a premier experience for the passenger. in November 2009, Martin was Sales Director at Gael where We will do this in two ways; firstly we will deliver product solutions against our Next he established and oversaw an Generation Airport vision – a vision that sees airport operators (and their stakeholders) put international aviation customer the passenger process at the heart of decision-making, enabling real-time collaboration, base of over 200 organisations, landside and airside alignment and a holistic view of airport operations. affirming the business as the market-leading brand in aviation Secondly, we will continue to challenge the staid services and solutions of the traditional compliance management in the aviation IT venders, whose vested interests around current airport processes have stifled Middle East. innovation and a necessary step-change in the sector for far too long. Martin Bowman, Transport Sector Director es ic rv se rt po gy ic ns er bl tra pu en 13
  15. 15. “The award of the eProcurement Scotland Service contract builds upon Scotland’s successes in the deployment and management of public sector eProcurement technologies. It also showcases Scotland’s supplier capability to host and manage what is regarded as one of the leading governmentA fully hosted and managed eCommerce services.”24 x 7 purchase to-pay (P2P)service, accessed via web Alex Neilbrowsers that allows routine Cabinet Secretary for Infrastructure and Capital Investment,purchases to be processed Scottish Governmentelectronically to help meeteGovernment targets 14
  16. 16. click to play movie Public ServicesPublic Services Sector Director 2011 was the most successful year yet for us. We grew our managed services offering and were appointed on another major Government framework as a result of which we won a number of significant contracts including British Waterways. The highlight of 2011 was securing the flagship eProcurement Scotland Service Management contract for the Scottish Government. This was our largest ever contract at £18.5m over 4 years.Alastair O’Brien For us, 2012 is about continuing to grow our business and delivering excellence to our customers. We want to get more involved with on-going Government initiatives to help shape solutions that drive efficiencies and cost savings. We will continue to provide an agile, flexible, customer focussed approach and will look to develop our international presence, replicating the success seen across the rest of the group. Our Education & Skills business unit will focus its attentions on higher education and education Alastair has 30 years of government agency departments. Our heritage provides us with a unique position and business, programme relationship with education organisations, as well as providing a number of positive outcomes management and IT project for educational institutions, children and young people. experience in a variety of market sectors and an Within our Government business unit, we believe that 2012 will finally be the year when shared outstanding track record services across all branches of the public sector will deliver tangible savings and efficiencies. of successful delivery of We are well positioned to lead shared services initiatives and will continue to work with the complex, high-risk projects. Scottish Government and end users of the eProcurement system in order to improve the service A board member of and ensure that it continues to deliver procurement benefits across the public sector. ScotlandIS, the trade body for ICT in Scotland, Alastair Our Health business unit is continuing to grow and has recently been bolstered by the is passionate about fostering appointment of a number of ex-NHS clinical staff, providing an invaluable insight to the sector. a world-class technology The reorganisation of the health market in England & Wales has created many opportunities for our team to deliver successful outcomes. Trusts are now in a position where they are environment. looking to the market to procure best of breed systems. From our newly established London base, we have developed a new product for the NHS that will deliver a single patient view. Alastair O’Brien, Public Services Sector Director es ic rv se rt po gy ic ns er bl tra pu en 15
  17. 17. click to play movie Technology Forecast 2011 proved to be an exciting year for technology both inside and outside Amor. Within, we demonstrated our belief in how this plays a key part in our continued success withChief Technology Officer my appointment as Chief Technology Officer to deliver a clear and effective technology strategy. We are exceptionally fortunate to have some great technologists working at Amor and we are committed to ensuring that all are able to effectively contribute to ourNeil Logan technology strategy. Ideas XChange, our corporate ideation platform, and Amor Insight, our technology strategy group, were both launched in 2011. They help us effectively democratize our technology strategy and provide technology focus and insight. We made significant investment in our internal infrastructure to ensure that we have the capability and flexibility to meet our increasing demands. This investment delivers Beginning his career off as virtualization technology and increased storage capacity yielding significant cost savings a developer, Neil grew his and efficiency benefits. technology, business analysis and consultancy skills working Externally the technology industry is now firmly in the post PC-era with cloud, mobile on a number of projects in the and social computing all becoming well established. international aviation market Cloud computing is and will remain a key trend for many organisations. Whilst some and UK public services sector. concerns around security, legislation and costs remain, the massive capital expenditure Neil was appointed Amor’s made by the large international cloud providers such as Google, Amazon and Microsoft CTO in 2011. He now leads means that many organisations are looking to realise the benefits offered. The the monitoring and assessment unprecedented level of capital investment by providers and huge competition is seeing a of new technologies and the “race to the bottom” on pricing. definition and propagation of our development processes and amorinsight practices. Neil also enables an innovative spirit within Amor, promoting and overseeing activities that ensure we remain at the forefront of business technology solutions. amorinsight 16
  18. 18. n iot isa er ta um ile da l ud ia ns ob c gclo co so bi mMobile computing technology has developed over recent Big data and data analysis are both fast increasing inyears, yet despite this, the marketplace remains in flux importance. As the amount of data we collect increaseswith no dominant platform emerging. This competitive there is a realisation that data has significant value.marketplace and on-going legal war between many major However as we continue to collect more and more datasuppliers means that uncertainty still impinges strategic the techniques used to analyse and store this data hasdecision making. The dramatic decline in fortunes of changed. The rise of NoSQL databases and tools suchResearch in Motion over the last 6 months demonstrates as Hadoop and Hive are key to a trend that, if embraced,the uncertainty faced. However, the significant efficiency offers significant benefits for organisations.benefits made possible by the adoption of mobiletechnology means that it is continuing to have a significant Despite challenging economic conditions, the rate ofimpact. change within the technology industry shows no sign of slowing and indeed appears to be creating significantSocial media and computing has also matured quickly challenges for all organisations. However, with theseand is fast becoming the way for organisations to interact challenges comes huge opportunity and it is organisationsdirectly with both staff and customers alike. Social who embrace these changes in a progressive and pragmaticcomputing enables organisations to take control of these manner that surely will gain competitive advantage. Thingsinteractions and capitalise on them. The success of are starting to get really network giants such as Facebook and Twitter havechanged individuals expectations and organisations who Enjoy the not embrace social computing are putting themselvesat a disadvantage. Neil Logan, CTOConsumerisation of IT is one of the most significantchallenges faced by organisations. The “bring your owndevice” movement has arrived with many organisations ill-equipped to deal with the challenges faced. However, ifsensibly embraced, it offers significant benefits. One thingis clear - consumerisation is a trend that all organisationswill have to face sooner or later. 17
  19. 19. , ASCO User Angela Wright Shelley Chishol m Assist Team M , Amor anager Complete IT Managed Service Solution Throughout 2011 we continued to strengthen our managed services capability to support our deep domain expertise in energy, transport and public services. The continued investment in Amor’s data centre and IT service desk means we can provide a fully managed service and IT solution to customers where required. Taking care of these basics allows us to work with our customers focusing on the areas where we can add value to their business to deliver a superior result for their users and customers. Data Centre Assure, Amor’s data centre, remains the only commercially available Tier III aligned facility in the North East of Scotland. Due to its geographic proximity, the data centre acts as a primary data centre for many UKCS oil and gas operators and as a secondary facility for our international customers. It also has over 100 seats for disaster recovery. Amor Assure supports customer operations across all three of our sectors.• click for web page In 2011 Assure achieved ISO 27001 Standard - the international standard for an Information Security Management System. We also installed an N3 line connecting the data centre directly to the NHS network and 1.3m NHS end users to provide national and local services and applications. IT Service Desk Assist, Amor’s UK based 24 x 7 ITIL standard IT service desk now has a global user base of over 10,000 covering 45 locations across 17 countries. The team handled 50,000 tickets this year from customers including ASCO, Sparrows, BIS Salamis, British Waterways and Business Stream. In 2011 we continued to invest and improve this service with the installation of IT service management system, ServiceNow. 18
  20. 20. Amor on the M ract Signing ove Sparrows Cont UK: USA: Netherlands: Kazakhstan: Trinidad & Tobago: Aberdeen Abbeville Ljmuiden Atyrau Chagaramus Coventry Broussard Zwaag Aktau Galeota Point Edinburgh Houma La Brea Glasgow Houston Italy: Oman: Point Lisas Great Yarmouth Lafayette Milan Muscat Port of Spain London Slidell Manchester Angola: UAE: Australia: Peterhead Norway: Luanda Abu Dhabi Darwin Farsund Dubai Perth Canada: Kristiansund India: Calgary Mongstadbase Mumbai Azerbaijan: Cold Lake Sandnessjoen Baku Edmonton Tananger Indonesia: Halifax Jakarta Qatar: St Johns Doha SingaporeOperational locationsAmor offices 19
  21. 21. “I have been very impressed with the professionalism, enthusiasm and confidence of the team at Amor. They understand our business objectives and what we want to achieve in the future. We are in the process of undertaking a series ofInternational energy servicescontractor business expansions and high level projects, and a sound IT platform is essential to support these ambitions.” Mike Main Managing Director, BIS Salamis (M&I) Ltd 20
  22. 22. click to play movieDirector’s Report and Financial StatementsCompany InformationDirectors The directors present their report and the financialD Blyth D Bruce statements for the year ended 31 December 2011. TheJ Innes M Bowman business review is in the CEO’s report on page 2. AmorS Leiper A O’Brien provides business technology solutions to the Energy,J Mottard Transport and Public Services sectors.Company secretary Results and DividendsD Blyth The profit for the year, after taxation, amounted toCompany number SC112421 £3,319,205 (2010: £3,189,940). The company declared a dividend of £11,000,000 during the year (2010: NIL).Registered office India of Inchinnan DirectorsGreenock RoadInchinnan The directors who served during the year were:PA4 9LH J InnesAuditors S LeiperMazars LLP D Blyth90 St Vincent Street J MottardGlasgow D Bruce (appointed 11 October 2011)G2 5UB M Bowman (appointed 11 October 2011) A O’Brien (appointed 11 October 2011)Bankers Clydesdale Bank Plc Provision of information to auditors20 Waterloo StreetGlasgow Each of the persons who are directors at the time whenG2 6DB this Directors’ report is approved has confirmed that: • so far as that director is aware, there is no relevantSolicitors audit information of which the company’s auditors arePaull & Williamsons LLP unaware, and;Union Plaza • that director has taken all the steps that ought to1 Union Wynd have been taken as a director in order to be awareAberdeen of any information needed by the company’s auditorsAB10 1DQ in connection with preparing their report and to establish that the company’s auditors are aware of that information. 21
  23. 23. Performance Measurement internal control environment, whilst enhancing the quality of management information.Amor aims to be the best provider to our customers,employer to our people and investment for our During the fourth quarter of 2011 we also strengthenedshareholders. Our performance as a provider is measured our finance team, both in the centre of the business andby our annual customer satisfaction survey, as an employer by creating new finance roles in each of the Sectors. Thisthrough an annual cultural survey and as an investment additional resource will help to assure the effectiveness ofthrough delivery against revenue, profit and cash targets. both our working capital and contractual risk management.Risks and Mitigation Disabled EmployeesIdentification, management and mitigation of business risk If an employee is disabled or becomes disabled we want tois a key component of the Amor business model. Whilst help as much as possible.we understand that pursuit of a growth agenda entailssome degree of strategic risk, we also recognise that many This might include a change to working conditions or jobof the additional challenges brought by rapid growth can duties that would assist that person in the performance ofand should be managed. their duties. We take advice from our medical advisers or specialist organisations to ensure that we do everythingOn an ongoing basis we manage financial and operational reasonably practical to help.risk in a number of ways – we have a diversified portfolio, ablue chip customer base and a high percentage of annuity Auditorsrevenue. We also have a skilled workforce who deliver to aconsistently high standard, as evidenced by the quality and The auditors, Mazars LLP, will be proposed forproject management accreditations within the business. reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by theIn order to ensure that we not only maintain but enhance board and signed on its behalf.our reporting and control environment as we grow, wehave commenced a full business system upgrade andimplementation across the group which will go live insummer 2012. The new system and related processimprovements will underpin the strengthening of the David Blyth, Chief Financial OfficerDirectors’ responsibilities statementfor the year ended 31 December 2011The directors are responsible for preparing the Directors’ • state whether applicable UK Accounting Standardsreport and the financial statements in accordance with have been followed, subject to any material departuresapplicable law and regulations. Company law requires the disclosed and explained in the financial statements;directors to prepare financial statements for each financial • prepare the financial statements on the going concernyear. Under that law the directors have elected to prepare basis unless it is inappropriate to presume thatthe financial statements in accordance with United • the company will continue in business.Kingdom Generally Accepted Accounting Practice (UnitedKingdom Accounting Standards and applicable law). The directors are responsible for keeping adequateUnder company law the directors must not approve the accounting records that are sufficient to show and explainfinancial statements unless they are satisfied that they give the company’s transactions and disclose with reasonablea true and fair view of the state of affairs of the company accuracy at any time the financial position of the companyand of the profit or loss of the company for that period. and enable them to ensure that the financial statementsIn preparing these financial statements, the directors are comply with the Companies Act 2006. They are alsorequired to: responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention• select suitable accounting policies and then apply them and detection of fraud and other irregularities. consistently;• make judgments and estimates that are reasonable and prudent; 22
  24. 24. Independent auditor’s report to the members of amor businesstechnology solutions limitedWe have audited the financial statements of Amor • have been properly prepared in accordance with UnitedBusiness Technology Solutions Limited for the year ended Kingdom Generally Accepted Accounting Practice; and31 December 2011 which comprise the Profit and Loss • have been prepared in accordance with theaccount, the Balance sheet, the Cash flow statement and requirements of the Companies Act 2006.the related notes. The financial reporting framework thathas been applied in their preparation is applicable law and Opinion on the other matter prescribed by theUnited Kingdom Accounting Standards (United Kingdom Companies Act 2006Generally Accepted Accounting Practice). In our opinion the information given in the Directors’ reportRespective responsibilities of directors and auditors for the financial year for which the financial statements are prepared is consistent with the financial statements.As explained more fully in the Directors’ responsibilitiesstatement set out on page 22, the directors are responsible Matters on which we are required to report byfor the preparation of the financial statements and for exceptionbeing satisfied that they give a true and fair view. We have nothing to report in respect of the followingOur responsibility is to audit and express an opinion on matters where the Companies Act 2006 requires us tothe financial statements in accordance with applicable law report to you if, in our opinion:and International Standards on Auditing (UK and Ireland). • adequate accounting records have not been kept, orThose standards require us to comply with the Auditing returns adequate for our audit have not been receivedPractices Board’s (APB’s) Ethical Standards for Auditors. This from branches not visited by us; orreport is made solely to the company’s members as a body • the financial statements are not in agreement with thein accordance with Chapter 3 of Part 16 of the Companies accounting records and returns; orAct 2006. Our audit work has been undertaken so that we • certain disclosures of directors’ remuneration specifiedmight state to the company’s members those matters we by law are not made; orare required to state to them in an Auditors’ report and for • we have not received all the information andno other purpose. To the fullest extent permitted by law, explanations we require for our audit.we do not accept or assume responsibility to anyone otherthan the company and the company’s members as a bodyfor our audit work, for this report, or for the opinions wehave formed.Scope of the audit of the financial statements P B Jibson (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered AccountantsA description of the scope of an audit of financial and Statutory Auditorstatements is provided on the APB’s website 90 St Vincent Street GlasgowOpinion on the financial statements G2 5UBIn our opinion the financial statements: 11 April 2012• give a true and fair view of the state of the company’s affairs as at 31 December 2011 and of its profit for the year then ended; 23
  25. 25. Profit and loss account for the year ended 31 December 2011 2011 2010 Note £ £Turnover 1,2 45,054,991 33,889,441Cost of sales (28,505,074) (19,716,367)Gross profit 16,549,917 14,173,074Administrative expenses (11,535,403) (9,454,316)Operating profit 3 5,014,514 4,718,758Interest receivable and similar income 30 402Amounts written off investments (5) -Interest payable and similar charges 7 (77,503) -Profit on ordinary activities before taxation 4,937,036 4,719,160Tax on profit on ordinary activities 8 (1,617,831) (1,529,220)Profit for the financial year 18 3,319,205 3,189,940There were no recognised gains and losses for 2011 or 2010 other than those included in the profit and lossaccount.The notes on pages 27 to 36 form part of these financial statements. 24
  26. 26. Balance sheet as at 31 December 2011 2011 2010 Note £ £ £ £Fixed assetsIntangible assets 9 7,474,302 9,228,133Tangible assets 10 1,496,022 1,504,359Investments 11 1,407,547 1,111,750 10,377,871 11,844,242Current assetsStocks 12 4,104,626 2,696,426Debtors 13 10,671,871 13,982,600Cash at bank 1,467,102 636,863 16,243,599 17,315,889Creditors: amounts falling due within oneyear 14 (14,565,510) (9,423,376)Net current assets 1,678,089 7,892,513Total assets less current liabilities 12,055,960 19,736,755Creditors: amounts falling due after morethan one year 15 (2,614,050) (2,614,050)Net assets 9,441,910 17,122,705Capital and reservesCalled up share capital 17 9,012,217 9,012,217Share premium account 18 3,606 3,606Profit and loss account 18 426,087 8,106,882Shareholders’ funds 19 9,441,910 17,122,705The financial statements were approved and authorised for issue by the board and were signed on its behalf by:D BlythChief Financial OfficerDate: 11 April 2012The notes on pages 27 to 36 form part of these financial statements. 25
  27. 27. Cash flow statementfor the year ended 31 december 2011 2011 2010 Note £ £Net cash flow from operating activities 22 9,398,848 1,596,689Returns on investments and servicing of finance 23 (77,473) 402Taxation (374,572) (803,876)Capital expenditure and financial investment 23 (858,991) (1,527,122)Acquisitions and disposals 23 (7,110,305) (1,434,701)Increase/(Decrease) in cash in the year 977,507 (2,168,608)Reconciliation of net cash flow to movement in net funds/debtfor the year ended 31 december 2011 2011 2010 £ £Increase/(Decrease) in cash in the year 977,507 (2,168,608)Movement in net debt in the year 977,507 (2,168,608)Net (debt)/funds at 1 January 2011 (2,127,276) 41,332Net debt at 31 December 2011 (1,149,769) (2,127,276)The notes on pages 27 to 36 form part of these financial statements. 26
  28. 28. Notes to the financial statementsfor the year ended 31 december 20111. Accounting policies 1.7 Stocks and work in progress Stocks and work in progress are valued at the lower1.1 Basis of preparation of financial statements of cost and net realisable value after making due The financial statements have been prepared under allowance for obsolete and slow-moving stocks. Cost the historical cost convention and in accordance with includes all direct costs and an appropriate proportion applicable accounting standards, which have been of fixed and variable overheads. applied consistently (except as otherwise stated). 1.8 Deferred taxation The company is itself a subsidiary company and Full provision is made for deferred tax assets and is exempt from the requirement to prepare group liabilities arising from all timing differences between accounts by virtue of section 400 of the Companies the recognition of gains and losses in the financial Act 2006. These financial statements therefore statements and recognition in the tax computation. present information about the company as an individual undertaking and not about its group. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be1.2 Turnover suitable taxable profits from which the future reversal Turnover comprises revenue recognised by the of the underlying timing differences can be deducted. company in respect of goods and services supplied during the year, exclusive of Value Added Tax and Deferred tax assets and liabilities are calculated at trade discounts. the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred1.3 Intangible fixed assets and amortisation tax assets and liabilities are not discounted. Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the 1.9 Foreign currencies identifiable assets and liabilities. It is amortised to the Monetary assets and liabilities denominated in profit and loss account over its estimated economic foreign currencies are translated into sterling at rates life of 20 years. Other intangible assets comprise of exchange ruling at the balance sheet date. software rights. These are shown at cost and are amortised to the profit and loss account in equal Transactions in foreign currencies are translated instalments over the estimated useful life of up to 3 into sterling at the rate ruling on the date of the years. transaction.1.4 Tangible fixed assets and depreciation Exchange gains and losses are recognised in the profit Tangible fixed assets are stated at cost less and loss account. depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less 1.10 Pensions their estimated residual value, over their expected The company operates a defined contribution useful lives on the following bases: pension scheme and the pension charge represents the amounts payable by the company to the fund in Short-term leasehold property - Over 25 years respect of the year. Plant & machinery - Over 3 years Fixtures & fittings - Over 3 to 8 years 2. Turnover The total turnover of the company for the year has1.5 Investments been derived from its principal activity undertaken in Investments held as fixed assets are shown at cost the United Kingdom (87%) and the rest of the world less provision for impairment. (13%.)1.6 Operating leases Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term. 27
  29. 29. 3. Operating profit The operating profit is stated after charging: 2011 2010 £ £ Amortisation - intangible fixed assets 1,070,404 679,453 Depreciation of tangible fixed assets: - owned by the company 477,225 371,9694. Auditors’ remuneration 2011 2010 £ £ Fees payable to the company’s auditor for the audit of the company’s annual accounts 13,800 13,400 Fees payable to the company’s auditor and its associates in respect of: Other services relating to taxation 6,100 5,4505. Staff costs Staff costs, including directors’ remuneration, were as follows: 2011 2010 £ £ Wages and salaries 17,653,363 14,575,956 Social security costs 1,847,143 1,484,833 Other pension costs 545,268 480,954 20,045,774 16,541,743 The average monthly number of employees, including the directors, during the year was as follows: 2011 2010 No. No. Administrative 75 62 Operational 346 308 421 3706. Directors’ remuneration 2011 2010 £ £ Emoluments 564,163 392,220 Company pension contributions to money purchase pension schemes 25,550 16,333 During the year retirement benefits were accruing to 6 directors (2010 - 3) in respect of defined contribution pension schemes. The highest paid director received remuneration of £159,000 (2010 - £149,000). The value of the company’s contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,500 (2010 - £4,134). 28