5. Maintaining performance across our divisions
Each of our 5 operating divisions consists of a number of
businesses and major contracts.
The common aim is to deliver service excellence and generate profitable growth through:
5.1 Aligning each business with the Group's overall strategy
and objectives.
5.2 Investing in service and product development and
appropriate sales and marketing activities.
5.3 Maintaining a simple, pragmatic divisional structure to
share resources and economies of scale.
5.1 Alignment with Group strategy
We maintain a simple, pragmatic divisional structure
that delivers our Group strategy.
The operating divisions and the businesses within them
are aligned with the Group's overall objectives and
strategy. They all follow the Group strategy of securing
strong, sustainable growth, both organically and by
acquiring complementary businesses.
Each business produces its own annual business plan outlining specific strategies and considerations and setting performance targets for the following year. The MOB review process ensures regular monitoring and reporting of performance against targets and is an effective forum for planning ahead, solving issues and sharing expertise and support. See Maintaining strong structure and control.
The divisional structure supports a robust, individual
focus for each business while providing ready access to
the Group's wider resources, expertise and economies
of scale.
5.2 An individual business focus
With an objective of achieving continuous growth,
each business undertakes appropriate strategies to
achieve or maintain market leading positions. Research
and development initiatives underpin the constant
development of products and services to meet the
current and future needs of clients. Businesses adopt
the most appropriate marketing and sales activities to
address the characteristics of their individual
market places. Each business also maintains strict
disciplines on cost control.
5.3 A flexible divisional operating
structure
We have created a pragmatic, flexible structure which
is regularly refreshed as the Group develops. We move
businesses, contracts and managers across the
divisions to ensure the best match of leadership and
resources as the Group grows. The businesses benefit
from the powerful combination of individual focus and
the ability to reach out across the Group to share
operational skills and resources, benefit from
economies of scale, create and deploy innovation, and
harness the best of ICT and business processes.
We are currently organised into 5 operating divisions,
plus a Group Sales & Marketing Division. Each
operating division brings together activities with
similar operating models or client bases. Each major
contract secured by the Group sales team is managed
with in the division which best meets its operational,
regulatory and management requirements. To provide
greater transparency we report financial progress for
8 business segments, splitting 3 of the 5 operating
divisions (Insurance & Investor Sevices, Integrated
Sevices and ICT, Property & Partnerships) each into
2 segments.
Group-wide support services, such as finance, legal
and commercial, property management, procurement,
health and safety and environment and HR, report
directly to Board Executive Directors to ensure robust
control, consistent standards and shared benefits
across the Group.
Insurance & Investor Services
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 |
| 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 |
Insurance & Investor Services
Life & Pensions
Comprises all our life & pensions operations
including open and closed book, occupational
pensions and wealth and distribution services.
| |
2008
(£m) |
2007
(£m) |
| Turnover |
462.9 |
263.6 |
| Operating profit |
55.7 |
32.9 |
| Operating margin |
12.0% |
12.5% |
| Capex |
34.1 |
23.4 |
Life & Pensions
Professional Services
Comprises our operations focused on supporting
local government and children's services (including
education) through strategic advice and interim
support, outsourced administration services, ICT
and software solutions and support.
| |
2008
(£m) |
2007
(£m) |
| Turnover |
311.2 |
289.8 |
| Operating profit |
56.4 |
47.9 |
| Operating margin |
18.1% |
16.5% |
| Capex |
5.4 |
5.6 |
Professional Services
Integrated Services
Comprises all our major central government contracts, retail sector contact centres and business travel
administration businesses, our integrated HR services and HR Solutions: HR administration, resourcing, payroll
administration, learning and development and outplacement services.
| Integrated Services |
2008
(£m) |
2007
(£m) |
| Turnover |
387.4 |
405 |
| Operating profit |
56.1 |
55.8 |
| Operating margin |
14.5% |
13.8% |
| Capex |
10.0 |
19.0 |
| HR Solutions |
2008
(£m) |
2007
(£m) |
| Turnover |
258.2 |
225 |
| Operating profit |
24.2 |
21.3 |
| Operating margin |
9.4% |
9.5% |
| Capex |
1.5 |
1.8 |
Integrated Services
ICT, Property & Partnerships
Comprises our ICT business, which supports the Group's operations and external clients, strategic local
government partnerships, health business, offshore operations and our property consultancy, Capita Symonds.
| ICT & Partnerships |
2008
(£m) |
2007
(£m) |
| Turnover |
339.4 |
259.5 |
| Operating profit |
35.0 |
27.7 |
| Operating margin |
10.3% |
10.7% |
| Capex |
12.2 |
8.8 |
| Property: Capita Symonds |
2008
(£m) |
2007
(£m) |
| Turnover |
262.2 |
231.9 |
| Operating profit |
22.8 |
19.3 |
| Operating margin |
8.7% |
8.3% |
| Capex |
2.2 |
2.7 |
ICT, Property & Partnerships