Investor Relations

AssetCo Fire and Rescue has evolved from the leasing and asset management subsidiary of British Gas into a high growth International Fire and Rescue Services business.

The past financial year delivered a strong endorsement from our clients in the evolution of the business from its leasing and asset management origins into a high growth International Fire and Rescue Services business. Our operating model has been re-shaped as a fully streamlined support services business to deliver the maximum return to stakeholders. We have closed our Vehicle Assembly unit, and begun the disposal process for our Specialist Equipment unit.

We delivered a £10.8m increase in profit before tax from continuing operations on the prior year, and in line with the long-term contractual nature of the business 100% of our forecast revenue for financial year 2011 is contractually committed. We have proactively reduced our recourse debt from £35.7m to £18.9m (which on a net debt basis less cash is £5.2m).

Culturally and intellectually, the business has under-gone a significant improvement in the depth and breadth of our technical and operating managerial skills base. Our team now includes senior global fire and rescue specialists who have expertise in policy, regulation, operations and training.

Strategy: UK

In the UK, we have prioritised our efforts on those essential support services accountable for high proportions of our client’s cost base.

The UK is entering a period of unprecedented public sector fiscal pressure. The requirement for all UK Fire and Rescue Authorities to follow the lead of London and deliver efficiency savings from continued modernisation will now be much greater and more pressing. We continue to develop solutions that enable clients to have access to alternative delivery models for operational training and frontline operational services.

In July 2009, we were awarded a 7–year contract by the London Fire and Emergency Planning Authority (LFEPA) for the provision of an Emergency Fire Crew Capability Service (EFCC) to the London Fire Brigade of up to 700 staff trained to provide a contingency firefighting service. The EFCC contract enables London to meet its statutory duty to provide crew resilience if existing services require support with extreme situations such as a pandemic illness or flooding.

This was the first major contract of its nature to be awarded by a UK Fire and Rescue Service, reflecting the increasing role Fire and Rescue Authorities have in securing their own continuity arrangements without reliance upon the support of the MoD. The contract was won following a competitive tendering process and reflects our depth of understanding of the challenges facing the UK Fire and Rescue Service and our ability to compete successfully with the largest companies in the business outsourcing field.

Strategy: Internationally

Internationally, our focus is to develop relationships with Governments who look to UK Fire and Rescue, and London Fire Brigade in particular, as operating templates to deliver change and improvement.

In November 2009, we announced a 10-year joint venture with the Abu Dhabi Government to develop and operate a 100-acre multi-agency, emergency services training centre. The project is an integral part of a programme to establish accredited training and senior qualifications in the fields of safety, security, defence, emergency preparedness and crisis management for personnel from the Emirates, the Gulf Co-operation Council (GCC) and Internationally.

In March 2010, we secured a 3-year contract, the first in the UAE, to provide a fully outsourced firefighting service including the provision of personnel, training, asset and facilities management. This contract has provided us with the opportunity to open up a number of new markets in the provision of frontline firefighting, including Aviation, Defence, and Oil and Gas markets. We are the only UK Company providing a frontline emergency service to a Foreign State.

Outlook

This is an exciting period in the Group’s development. The evolution of our business model into the provider of a UK Fire and Rescue based frontline operational service, has us well placed for growth as an International Fire and Rescue Services business. Whilst our established track record in the UK allows us to continue to offer alternative models to deliver significant efficiency savings to those Local Authorities tasked with meeting the Chancellor’s budget targets.