Letter to the Chair of the Committee from
Mr Christopher Moxey, Chief Executive, FCO Services |
FCO SERVICES ANNUAL
REPORT & ACCOUNTS
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
THE FCO IN
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.
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%.
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.
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