Annual Review 2019 Rigby Group
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ANNUAL REVIEW 2019 RIGBY GROUP. A MULTINATIONAL GROUP ANNUAL REPORT 2019 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS CONTENTS STRATEGIC REPORT 66 GOVERNANCE 4 Chairman’s statement 68 Directors’ report 8 COO’s review 71 Directors’ responsibilities statement 10 Board of Directors 72 Independent auditor’s report 12 Group highlights 14 Our mission, vision and values 74 FINANCIAL STATEMENTS 15 Corporate and social responsibility 16 Rigby Foundation 76 Consolidated profit and loss account 77 Consolidated statement of 18 PERFORMANCE REVIEW comprehensive income 19 Highlights - business at a glance 78 Consolidated balance sheet 20 Technology 79 Company balance sheet 28 Airports 80 Consolidated statement of changes in equity 34 Real Estate 81 Company statement of changes in equity 42 Financial Services: 82 Consolidated cash flow statement 44 Rigby Capital 83 Notes to the financial statements 46 Nuvias 48 FluidOne 136 COMPANY INFORMATION 50 Hotels 56 Aviation 60 Principal risks and uncertainties 64 Group financial summary 2 1 BUSINESSUNLEASHING • POTENTIAL PEOPLEEMPOWERING • PEOPLE INVESTMENTUNLOCKING • OPPORTUNITY COMMUNITYCHARITABLE • CARING 2 3 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS ANNUAL REPORT 2019 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS UNLEASHING POTENTIAL IS FOUNDATION OF SUCCESS SIR PETER RIGBY OURIN REVIEWYEAR This has been a year of fulfilled potential. Today’s organisation is more varied and diverse than A year in which the strategic acquisitions and the principally technology-led business it was for its investments of the past few years have continued first three decades, but we remain a key player in the to grow and, together with those businesses technology sector, having grown a progressive and that have formed part of the Group since its highly effective business whose place in the market inception, have continued to deliver dynamic is built on its proven ability to optimise and deploy growth and increased profitability as a result. technology in a manner that unleashes the potential of our partners and customers. I believe this is an important point, because at Rigby Group’s core is a single goal – to unleash the potential That ethos is what drives us to excellence, to being of the business and investment opportunities we create, market leaders with a reputation for delivering to in the partnerships we build, in the communities that customers at the very highest levels, and it is something inspire us and in the people that are part of our upon which the reputation of the Rigby Group brand – organisation. and those of its divisional businesses – is built. In business and investment, this maxim of unleashing Yet while I remain proud that we have many market- potential is clearly borne out by a set of figures that are leading brands within the Group’s portfolio – from SCC, the best in the Group’s 44-year history. As of 31 March which remains Europe’s largest independent IT services 2019, the Group’s combined revenue, across our six business to some of our newest brands, which have divisions, had reached £2.77bn and we are reporting made a big impact in their respective markets – it is £380.4m of gross cash assets, while the EBITDAE* our commitment to unleashing the potential of our figure of £65.4m tells its own powerful story of a people that lies at the heart of this success. business living up to its significant potential. Across the group we have enjoyed great success in Today, Rigby Group operates 99 different companies the use of Apprenticeships, Graduate Schemes, and in more than 14 countries worldwide, with more than Internships to provide pathway opportunities and 8,500 people across the globe. comprising six divisions development. spanning airports (Regional & City Airports); hotels (Eden Hotel Collection); aviation (primarily British Similarly, we are committed to the personal and International Helicopters & Capital Air Ambulance); professional development of all our staff, encouraging financial services (Nuvias & Rigby Capital); real ongoing learning to ensure they have the skills estate (Allect Design Group & Rigby Real Estate); and necessary to fulfil their maximum potential and technology (SCC). participating in a range of initiatives from childcare vouchers to the walk to work scheme to support team We see great further potential in that line up. Potential members in their efforts to progress both professionally in its diversity, to help weather the uncertainty in the and personally. economic and political climate, as well as the significant potential for inter-group partnerships and transactions Our reasons for doing so are clear and reflected not such as the servicing of SCC and Nuvias’ IT investment only in the many awards and accolades that Group needs by Rigby Capital, which has celebrated its fourth businesses have achieved over the last year, but in the year of trading with a doubling of its year-on-year strength of our ongoing relationships with partners profitability. from across the economic landscape. *EBITDAE is defined as earnings before interest, taxation, depreciation, amortisation and exceptional items. A reconciliation of operating profit to EBITDAE is provided in the Group Financial Summary on page 65 4 STRATEGIC REPORT - CONTINUED 5 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS ANNUAL REPORT 2019 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS As I’ve remarked before, the Rigby family are serial The Rigby Foundation works side by side with a range entrepreneurs. It’s in our genes, and the driving urge to of people and projects focusing on lifelong learning recognise and fulfil new potential is something we share and health – providing expertise and resources as with our senior management team. We understand well as funding. that by seizing the possibilities in the world to make a difference, we empower business and enable people to It is through commitment to the principle of unleashing achieve more. potential that I believe Rigby Group marks itself as a different kind of organisation to many of its competitors. Rigby Group’s objective, within the next six years, is to It is the strength that supports both our performance double the achievements of the past 44 years – creating and our relationships, and while we have practiced this a £1bn market value diversified group by 2025 that ethos for decades without publicly discussing it, in the will make Rigby Group one of the most successful coming 12 months our pride in that brand will underpin wholly-owned family businesses the UK has ever our messaging and conversations throughout the produced. group’s activities. However, I suspect that even this achievement will not The year ahead is full of potential for our businesses, satisfy our collective urge to keep creating, to keep our investments, our people and the communities we building, to keep finding ways of maximising our work in. potential and even exceeding it. With continued strategic foresight, hard work and We are well on the way to achieving our goal through commitment to fulfilling that, I have no doubt that it will realising the potential of smart, strategic acquisitions be yet another record year for Rigby Group and all of and by leveraging our strategic foresight, appetite for its diverse and exciting operations. hard work and reputation as a highly effective, lean and fast-moving business – one that is a trusted partner of Sir Peter Rigby government, the military, global corporations, major Chairman & Chief Executive, Rigby Group charities, as well as thousands of vibrant businesses around the world. In parallel with the growth of the business is a continued focus on making sure that the Rigby Group continues to invest in the potential of the communities in which our companies are located or involved. 6 STRATEGIC REPORT - CONTINUED 7 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS ANNUAL REPORT 2019 RIGBY GROUP (RG) PLC AND SUBSIDIARY UNDERTAKINGS DIVISIONAL MILESTONES UNDERPIN STRATEGIC GROWTH STEVEN RIGBY STRATEGIC The past 12 months have been yet another secured new carriers for three of our airports and expect period of successful growth and strategic to see double digit growth during our current fiscal year. achievement for Rigby Group. Across our operations, we have witnessed key milestones Our real estate business secured outline consent for which collectively have fed into yet another our 3.7m sq. ft. scheme in Coventry. Our estate was record set of financial performance. 98% let in Bournemouth, where we also submitted consent for over 1m sq. ft. of new facilities. In Norwich At a headline Group level, we have seen consolidated we submitted planning for 1m sq. ft. of development. revenues from continuing operations reach £2.77bn We consolidated our residential & yacht interior design for the year ending 31 March 2019. This is an increase businesses into Allect, with a healthy order book of over of 16.7% compared to the previous 12 months. Our £50m across 50 worldwide projects. EBITDAE totalled £65.4m, up 11% year-on-year. Elsewhere, our gross cash at year end was £380.4m. Our aviation business continued to operate its MOD These are figures which illustrate our growth and missions in the UK and Falklands, operate 100’s of underpin our ability to keep investing both within our patient repatriation flights and maintain aircraft through businesses or in further acquisitions; should we see a our MRO operations. strategic opportunity. Our hotel business continued to see further accolades SCC has delivered a solid financial performance with for service and cuisine across the 8 hotels sites we revenue growth of £322.0m and EBITDAE growth of operate. 2.0m (4.4%). We are well positioned to continue to benefit from the move to cloud computing and the As we look to our current fiscal year, we have much to associated services and product streams. Notable be optimistic about with ambitious plans across our six highlights include ongoing investment in expansion of divisions.