business plan 2017 - 18 - nps group · business plan 2017 - 18. contents • about us • why we...
TRANSCRIPT
Business Plan
2017 - 18
CONTENTS
• About us
• Why we are different
• Group financial performance
• Our five year plan
• Key business aims: Finance and Customer
• Key business aims: Process and People
• Governance
• Meeting our stakeholders’ ambitions
Property design and management services nps.co.uk
About us
Our purposeTo provide innovative end to end property solutions
that generate outstanding value for our customers
Our roleTo design property solutions and manage property
services across all sectors
Our visionTo be the property consultant of choice in the UK,
recognised for delivering outstanding solutions
Our values• Quality
• Innovation
• Respect
• Trust
Our aims• Achieve sustainable and profitable growth
• Expand our customer base and meet our clients’
needs
• Make a positive impact on the communities in
which we serve
• Always deliver high quality services efficiently
• Maintain a culture where our people thrive and
reach their full potential
Why are we different?
Property design and management services nps.co.uk
Our business
model for the
private sector marries efficiency
with innovation to
deliver
outstanding value
Our unique Joint
Venture business
model for the
public sector provides direct
benefits to our
partners and the
communities we
serve
We achieve
impressive
commercial success whilst
remaining in
public sector
ownership
We respect and
support all our
clients, partners and people
We take personal
responsibility for
our actions and
deliver on our promises
As part of the
Norse Group we
can offer a wide
and cohesive
range of services that deliver
leading quality
and value
Group financial performanceIn 2017, the Group will seek to improve its operational profit to 5.0%. This will improve the return to its shareholders and allow the necessary investment in the company to continue to develop new and cost effective services.
Turnover Earnings before tax
• Return on capital employed in excess of 10%
(excluding pension)
• Current ratio in excess of 1
• Gross operating profit in excess of £3.5m
Performance indicators
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0.5
1
1.5
2
2.5
3
3.5
Mill
ion 2016 - 17
2017 - 18
2018 - 19
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20
40
60
80
100
120
Mill
ion
2016 - 17
2017 - 18
2018 - 19
Income breakdown
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
2017 - 18
Aspirational:£15,147,000 (20%)
Probable:£26,129,000 (35%)
Secured:£33,544,000 (45%)
Our five year plan
The Norse Group has five key objectives to which we will contribute over
the next five years:
• Deliver sustainable and profitable growth
• Build a balanced client base
• Increase the return to our shareholders
• Maintain the operating margin
• Deliver a significant investment programme within the Group
• Actively controlling our management overheads
We aim to grow the business by 30% over the next three years through:
• Developing new markets and services including housing
• Increasing our exposure in the private sector
• Actively controlling our management overheads
Property design and management services nps.co.uk
QUALITY
INNOVATION
RESPECT
TRUST
Our values
Property design and management services nps.co.uk
FINANCEAchieve profitable and sustainable growth
Our 2016 objectives• Maintain the operating margin and deliver increased return to our shareholders
• Deliver a Group turnover target in excess of £73m
• Pre-tax profit £4.495m (before volume discounts)
• Gross profit 6.16% (before volume discounts)
• Achieve a balance sheet total of £9.1m (excluding pension and minority interests)
• Achieve cash at bank of £3.4m
How we did We achieved a profit margin of 1.5% (before volume discounts, exceptional items and pensions)
£1.7m was returned to shareholders and Joint Venture partners
Turnover of £91m achieved for NPS Group trading companies
Pre-tax profit achieved of £1.4m (before volume discounts, exceptional items and pensions)
Balance sheet total of £0.2m (excluding pension and minority interests)
What we will do in 2017• Increase profit margin to 5%
• Generate retained profits for the NPS Group of greater than £2m
• Increase return to shareholders and Joint Venture partners
• Deliver Group turnover of £75m
• Generate positive cash position
Policy and strategy
Estate management, planning and
valuation
Building maintenance and statutory compliance
Building design and construction
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CUSTOMERExpand our customer base and meet our clients’ needs while making a
positive impact on the communities in which we serve
Our 2016 objectives• Build a balanced client base and meet our clients’ needs while making a positive impact on the
communities in which we serve
• Achieve a client satisfaction rate of 98%
• Achieve a tender success rate of last least 30%
• Secure at least one new joint venture
• Increase private sector work by 20%
• Promote the Norse Group CR strategy – The Norse Way
How we did We achieved 98.3% customer satisfaction
We achieved a tender success rate of 52% for PQQs and 33% for ITTs
We successfully launched a new joint venture with Peterborough City Council
We have successfully achieved c1,500 prospected (unqualified) leads in the south east of the UK
We have successfully launched and implemented the Norse Group CR strategy – The Norse Way –
with initiatives such as the National Wellbeing Week promoting lifestyle changes, Dementia Friendly
training sessions, and aim to reduce energy usage targets by 5% by 2019
What we will do in 2017• Continue to build a balanced client base and meet our clients’ needs while making a positive
impact on the communities we serve
• Achieve a client satisfaction rate of 98%
• Maintain a tender success rate of at least 30%
• Secure at least one new joint venture
• Increase private sector work by 20%
• Continue to develop and promote the Norse Group CR strategy – The Norse Way
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PROCESSContinue to deliver high quality services efficiently
Our 2016 objectives• Maximise existing investment in BIM and secure further targeted Level 2 capability
• Achieve ISO status against the 2015 revised standards; achieving quality accreditation for new JVs
within twelve months of start up
• Manage the transition from OHSAS 18001 to ISO 45001
How we did Secured further targeted BIM Level 2 capability by 25% increase in software licences
Invested and implemented alternative modern productivity software tools that ad value through
mobility and accessibility for staff
Achieved successful transition to the 2015 ISO standards and have been audited externally
against the new standards with no non-conformance issues
We remain poised to adopt the new ISO 45001 standards as soon as they have been
internationally agreed
What we will do in 2017• Broaden our skills and knowledge base to secure further targeted BIM Level 2 capability
• 30% of the Group design function is able to deliver projects to BIM Level 2
• Ensure 100% compliance that zero major conformances are issued against the ISO 9001 2015
revised standards
• Achieve quality accreditation for new JVs within 12 months of start up
• Transition from OHSAS 18001 to ISO 45001
Policy and strategy
Estate management, planning and
valuation
Building design and construction
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PEOPLEBe the employer of choice within the property industry
Our 2016 objectives• Invest over £420k into talent development initiatives
• Sponsor at least twenty apprentice, intern and student placements nationally
• Implement the new Reward and Recognition strategy
• Increase the proportion of qualified professionals by 1.5%
• Increase the number of employees who undertake agile working by 1%
How we did We invested £366k into talent development initiatives
We recruited five graduates and sponsored five interns, two student placements, eighteen
apprentices and 48 work experience placements
We successfully implemented a Group-wide Reward and Recognition programme
We increased the proportion of professionally qualified staff by 1.84%
We increased the number of employees undertaking agile working by 6%
What we will do in 2017• Implement a development strategy to maximise the value of the apprenticeship levy
• Sponsor thirty apprentice, intern and work experience placements nationally
• Continually enhance our market leading Reward strategy
• Increase the number of employees who undertake agile working by 4%
• Increase the proportion of qualified professionals by 1.5%
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Governance
Shareholder committee
This cross party group of members meets every quarter to review the activities of the Norse Group and to advise on the future strategy of the company. In addition, it provides a conduit to all members, ensuring they are made aware of the Group’s activities.
Other governance
We also report to individual shareholder cabinets on the progress of joint ventures. External financial audits are undertaken by PwC UK
Board of Directors
Mike Britch
Group Managing
Director
NPS Group
Dean Wetteland
Managing Director
Norse Commercial
Services
Karen Knight
Managing Director
NorseCare
Tom McCabe
Executive Director
Norfolk County
Council
Ian Mackie
Councillor
Norfolk County
Council
Property design and management services nps.co.uk
Our structure
Norfolk County Council
Norse Group Ltd
NPS Property Consultants Ltd NorseCare Ltd Norse Commercial Services Ltd
NPS Barnsley Ltd
NPS Humber Ltd
NPS Leeds Ltd
NPS London Ltd
NPS Newport Ltd
NPS North West Ltd
NPS Norwich Ltd
NPS Peterborough Ltd
NPS South West Ltd
Broadland Growth Ltd
Hamson Barron Smith Ltd
Hearth UK Ltd
International Aviation Academy Norwich Ltd
Norse Development Company Ltd
Norse Energy Ltd
Barnsley Norse Ltd
Devon Norse Ltd
Enfield Norse Ltd
Eventguard Ltd
Great Yarmouth Norse Ltd
GYB Services Ltd
Medway Norse Ltd
Medway Norse Transport
Newport Norse Ltd
NEWS Ltd
Norse Eastern Ltd
Norse Environmental Waste Services Ltd
Norwich Norse (Building) Ltd
Norwich Norse (Environmental) Ltd
Norse South East Ltd
Norse Transport Ltd
Suffolk Coastal Norse Ltd
Suffolk Norse Ltd
Suffolk Norse Transport Ltd
Waveney Norse Ltd
Wellingborough Norse Ltd
Property design and management services nps.co.uk
Meeting our
stakeholders’ priorities
Excellence in EducationWorking for a well-educated Norfolk where people are prepared for real jobs with good wages and prospects
Real JobsMaking Norfolk a place where businesses are able to grow or want to relocate to, because we are so well connected
Improved Infrastructure
Supporting vulnerable peopleIncluding helping people earlier before their problems get too serious.
Property design and management services nps.co.uk