ERM Annual Review 2008 - (Page 5) Operational Report John Alexander Chief Executive Officer Andrew Silverbeck Finance Director 19% Record Growth We increased our net consulting revenue by 19%. The financial year ended 31 March 2008 represented a record year for ERM in terms of financial growth. At constant exchange rates, we increased our net consulting revenue by 19% and our operating profit by 23%. These were delivered in conjunction with strong operating cash flow, which was in excess of 100% of operating profit. Throughout the financial year, we have continued to undertake a number of actions to invest in the future growth of the business. These have ranged from reshaping our regional management teams to focusing on areas of increasing client demand such as climate change, compliance assurance and impact assessment & planning. Operational Performance 23% Operating profit grew by 23%. Operationally, our strongest growth was in Europe, the Middle East and Africa (EMEA) and Asia Pacific: where trading profit grew by 30% and 28%, respectively. This was achieved by continuing to provide services for multinationals across these regions as well as delivering more projects for domestic clients. In order to enhance collaboration and better share operating methodologies, our North America region was reorganized into three sub-regions: Northern, Southern and Western. After allowing for increased levels of bonuses, North America EBITA grew by 7%. Given its wealth of natural resources and continued development, the Latin American and Caribbean (LAC) region continued to represent a key area of business activity. Brazil’s earnings returned to a level in line with those produced in the 2006 financial year. In total, operating profit grew faster than net revenues, and the impact of this positive operational gearing raised our operating margin to above 13%. Across our practice areas we saw a 28% growth in Impact Assessment & Planning, driven ultimately by rising prices across the commodity markets. In addition, provision of risk and climate change services resulted in our Strategic Advice practice growing by 29%. � ERM Annual Review 2008 05
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.