FCO Performance and Finances - Foreign Affairs Committee Contents


Letter to the Chair of the Committee from Mr Christopher Moxey, Chief Executive, FCO Services

FCO SERVICES ANNUAL REPORT & ACCOUNTS 2009-10

I am very pleased to provide you with a copy of our Annual Report and Accounts for 2009-10. This is part of a very limited print run; we will communicate our report more widely via our website.

Our priorities this year have been twofold: rigorously managing down our costs and identifying efficiencies whilst at the same time seeking opportunities to grow our business across government. In this context, our report highlights the following achievements:

SUSTAINED VALUE DELIVERY TO THE FCO IN A CHALLENGING CLIMATE

Our headline results declare an operating surplus of £6.1 million on a turnover of £126.8 million, equating to a net margin of 4.8%. Our continued strong financial performance has enabled us to deliver further benefits to the FCO in our second year of operations: we have contributed a further £2 million savings to the FCO's CSR efficiencies and paid a discretionary dividend of £3 million. The latter payment is substantially ahead of plan and is in addition to our payment of a statutory dividend of almost £450k and the payment of £2 million to meet our stakeholder debt repayment obligations.

DELIVERING MORE WITH LESS

The reduction of the budget deficit is an urgent priority for Government as a whole. In line with the imperative to achieve more with less resource, new ways of working and other efficiencies have enabled us to increase our productivity further this year and to deliver £3.45 million procurement savings, exceeding our target by more than 20%.

INCREASED COLLABORATION TO DELIVER GREATER PUBLIC VALUE

In this climate, it is more vital than ever that we collaborate closely with our partners across government. This continues to be central to our business strategy, as is demonstrated by the further growth in our non-FCO revenue this year, representing an almost 25% increase on our normalised baseline for 2008-09. We have achieved this through deepening our relations with key customers such as HMRC, SOCA, the Home Office and the UK law enforcement sector. We will continue to seek out opportunities to deliver joint solutions in the provision of secure services across the government's global network.

STAFF ENGAGEMENT IS VITAL TO OUR SUCCESS

Our staff have ably risen to the challenge this year and our formal accreditation as an "Investors in People" organisation is tangible recognition of the efforts and dedication of all who work for FCO Services. We know full well that providing exceptional service to our customers is vital to our long-term sustainability and our ability to deliver ongoing value to the FCO and the rest of government. Accordingly, we will strive to build on the improvements in customer satisfaction that have been evident this year.

16 July 2010



 
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