Comprises our shareholder, financial and trust administration, treasury services businesses, specialist services
and our insurance services businesses.
These businesses focus on providing efficient, quality advisory, administration and customer services.
| Insurance Services |
2008
(£m) |
2007
(£m) |
| Turnover |
246.2 |
241.5 |
| Operating profit |
31.1 |
29.1 |
| Operating margin |
12.6% |
12.0% |
| Capex |
7.6 |
2.9 |
2008 Growth and operational update:
Conditions for insurance companies are challenging in the current
economic climate, however these volatile conditions have resulted in
pressure on potential clients to address counterparty risk and drive
business transformation. This has led to an increased interest in our
service offerings.
Marsh: We successfully transferred administration services for Marsh
from their operations based in Norwich and Pune, India. The contract
is progressing well.
Principle Holdings: We are setting up an IT system and
administration infrastructure to provide outsourced services for
Principle's motor and home insurance and from which to launch and
sell Sharia compliant insurance (or Takaful) products direct to
consumers in the UK.
System migration and consolidation: Across our insurance
operations we have consolidated and enhanced our IT
infrastructure, increasing efficiency and reducing costs. We have
migrated a significant number of roles from London to Gloucester
and Mumbai, and this process will continue in 2009. This project
will yield significant cost savings both with regards to headcount
and premises.
Acquisitions: We have continued our focus on small, bolt on
acquisitions to expand our service offering and enter new sectors.
During the year we acquired or invested in 3 companies covering
areas including insurance administration, legal services and the
provision of supply teacher insurance for schools. Our largest
acquisition, Lancaster Insurance Services, has been successfully
integrated with in our business and is performing well.
2009 priorities
- Enhance our sales function to meet the higher level of demand
from current and potential clients as they consider outsourcing to
introduce greater cost efficiencies and improved service levels in
the current economic climate
- Pursue sensibly priced and quality acquisition opportunities as
companies look to dispose of non-core assets
- Use our scale and reputation for compliant delivery to provide
clients with an effective way of addressing the probable tighter
regulation that we expect to see across the market
- Work with clients to bring new products to market faster
- Increase use of our offshore facilities and expertise.
| Investor services |
2008
(£m) |
2007
(£m) |
| Turnover |
173.9 |
156.9 |
| Operating profit |
39.6 |
37.3 |
| Operating margin |
22.8% |
23.8% |
| Capex |
17.9 |
3.7 |
2008 Growth and operational update:
Across the financial services market there is much commonality
of processes and therefore a greater ability to share infrastructure
and expert resource. The current economic conditions present
some challenges but also opportunities.
Shareholder Services: For the eighth year in a row, we dominated
the New Issues Markets on the Stock Exchange and also won 14
new registration clients from other registrars, a record year of
'switch' business for us.
Our Investment and Unit Trust Administration business is
potentially sensitive to economic conditions as fees are linked
to the value of funds under administration. During 2008 new
mandates were secured and assets under administration
remained constant.
Acquisitions: During the year we acquired 3 companies to
complement and expand our fiduciary, treasury and registrars
businesses. These small acquisitions, which cover services such as
treasury advice to housing associations and NHS membership
administration services, add depth and scale to our existing
businesses and are performing well.
ICT: We have successfully begun a programme of major systems
upgrades across our Fund Administration and Shareholder Services
to improve operational efficiency, increase quality of service and
enhance our ability to transfer work across multiple locations
including offshore.
2009 priorities
- Explore and be selective regarding the bid opportunities from
current and potential clients as they consider outsourcing to
introduce greater cost efficiencies, flexibility and improved
service levels in the current economic climate
- Use our scale and reputation for compliant delivery to address
the probable tighter regulation of the markets we serve
- Continue major systems upgrades and implementations, especially
in Fund Administration and Shareholder Services, to significantly
improve operational efficiency and increase quality of service
- Pursue sensibly priced and quality acquisition opportunities as
companies look to dispose of non-core assets
- Pursue opportunities following introduction, in 2009, of settlement
of collectives in Euroclear, building on our position as the only
Euroclear compliant registrar which also undertakes fund
administration work in the UK.