business plan 2016-17 - nps group€¦ · achieve profitable and sustainable growth how we did...

Business Plan 2016-17

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Property design and management services │ nps.co.uk

About us 3

Why we are different 4

Group financial performance 5

Our five year plan 6

Key business aims: Finance and Customer 7

Key business aims: Process and People 8

Governance 9

Meeting our Stakeholders’ ambitions 10

Contents

A dynamic, independent,

publicly owned

organisation designing,

developing and managing

buildings and assets

3


About us

Our vision To be the property consultant of choice

in the UK, recognised for delivering

outstanding solutions

Our values Quality

Innovation

Respect

Trust

Our role To design property solutions and manage

property services across all sectors

Our aims 1. Achieve sustainable and profitable

growth

2. Expand our customer base and meet

our clients’ needs

3. Make a positive impact on the

communities in which we serve

4. Always deliver high quality services

efficiently

5. Maintain a culture where our people

thrive and reach their full potential

Our purpose To provide innovative end to end

property solutions that generate

outstanding value for our customers

4


Why we are different

We achieve impressive

commercial success whilst

remaining in public sector

ownership

Our unique Joint Venture

business model for the public

sector provides direct benefits

to our partners and the

communities we serve

As part of the Norse

Group we can offer a

wide and cohesive range

of services that deliver

leading quality and value

Our business model for the

private sector marries

efficiency with innovation to

deliver outstanding value

We respect and support

all our clients, partners

and people

We take personal

responsibility for our

actions and deliver on

our promises

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In 2016, the Group will seek to improve its operational profit to 8.5%. 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.

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2016 - 17 2017 - 18 2018 - 19

Group financial performance

Performance indicators

• Return on Capital Employed in excess of 10% (excluding pension) • Current ratio in excess of 1

• Gross operating profit in excess of £4.5m

6


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 50% over

the next three years through:

Developing new markets and services

including housing

Increasing our exposure in the

private sector

Securing new Joint Ventures with the

public sector

Actively controlling our management

overheads

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2015 objectives review/targets for 2016

Finance Achieve profitable and sustainable

growth

How we did

Profit Margin of 2.17%

Post Tax profits of £2.7m

Balance Sheet strengthened to £11.3m (excluding pension deficit)

Group was at a cash positive position at year end

What we will do in 2016

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 & minority interests)

Achieve Cash at Bank of £3.4m

MORE TO FOLLOW

Customer Expand our customer base and meet our

clients’ needs while making a positive impact

on the communities in which we serve

How we did

We achieved 96.4% customer satisfaction

We achieved a tender success rate of 31%

We are finalising negotiations for a new JV with Peterborough City Council

We have grown our private sector work but need to develop more robust segmentation analysis

We developed and implemented the Norse CSR strategy – The Norse Way


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 at least 30%

Secure at least one new Joint Venture

Increase private sector work by 20%

Promote the Norse CSR strategy – The Norse Way

Our 2015 objectives

Increase profit margin to 8.5%

Increase Post tax profits by 92.4% to £4.1m

Continue to strengthen the Balance Sheet to achieve £8.5m (excluding pension deficit)

Our 2015 objectives

Maintain client satisfaction rate of 98%

Achieve a tender success rate of at least 30%

Secure at least one new Joint Venture

Increase private sector work by 20%

Develop Groupwide CSR strategy

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Process

Continue to deliver high quality services

efficiently

How we did

Investment was made in software and training with BIM Level 2 capability offered

The Group maintained full ISO accreditation. Newport JV achieved accreditation within 7 months of start up

Achieved Group accreditation for OHSAS 18001 Health & Safety

HR iTrent modules were implemented


Deliver high quality services efficiently by:

Maximising existing investment in BIM and

securing further targeted Level 2

capability

Achieveing ISO status against the 2015

revised standards; achieving quality

accreditation for new JVs within 12

months of start up

Managing the transition from OHSAS 18001

to ISO 45001

People

Become the employer of choice within

the property industry

How we did

We invested £418K in staff training and other areas of staff development

We sponsored 2 Apprentices, 29 Work Experience placements, 3 Student placements and 11 Interns of which 5 were offered contracts. Links have been strengthened with the UEA

We are finalising our Reward Programme

Qualified staff have increased by 1.5%


Invest over £420K into talent development initiatives

Sponsor at least 20 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%

Our 2015 objectives

Maximise existing investment in BIM and secure targeted Level 2 capability

Continue to maintain ISO status and achieve quality accreditation for new JVs within 12 months of start up

Achieve ISO 18001 accreditation

Conclude the roll out of iTrent HR modules

Our 2015 objectives

Invest 2% of turnover into staff training, including a management development programme

Sponsor a minimum of 20 Apprentices, Interns and Student Placements; and improve links to FE/HE

Introduce a new reward and recognition scheme

Increase the proportion of professionally

qualified staff by 1.5%

2015 objectives review/targets for 2016

9


Governance

Board of Directors

Anne Gibson Executive Director

of Resources

Norfolk County

Council

Colleen Walker Councillor

Norfolk County

Council

Mike Britch Group Managing

Director

NPS Group

Peter Hawes Managing Director

Norse Commercial

Services

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 Grant Thornton UK LLP

Karen Knight Managing Director

NorseCare

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 East Ltd

NPS North West Ltd

NPS Norwich 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 Transport Ltd

Suffolk Coastal Norse Ltd

Suffolk Norse Ltd

Suffolk Norse Transport Ltd

Waveney Norse Ltd

Wellingborough Norse Ltd

10


Meeting our Stakeholders’ ambitions

Strong economy

Creating a vibrant, strong and sustainable economy, including designing affordable,

sustainable housing

Aspirational people

Supporting people to attain high levels of achievement and skills, for example through

Norse Group’s CSR Strategy – The Norse Way

Inspirational place Helping to create an environment with a clear sense of identity, where people can

live, thrive and feel part of their community using facilities such as our Care Homes

business plan 2016-17 - nps group€¦ · achieve profitable and sustainable growth how we did...

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