ERM Annual Review 2008 - (Page 6) Five Year Historical Performance Financial Years ended 31 March 2004 (FY 2004) to 31 March 2008 (FY 2008) FY 2004 Actual Gross Revenues Net Revenues 2 EMEA Asia Pacific LAC North America Niche Businesses 3 Total Net Revenues % Growth – Actual % Growth – Constant Currency 4 Trading EBITA 5 EMEA Asia Pacific LAC North America Niche Businesses 3 Total Trading EBITA 5 % Growth – Actual % Growth – Constant Currency 4 1 US$ million1 FY 2005 Actual 425.4 83.1 40.8 19.1 144.9 – 287.9 12% FY 2006 Actual 474.4 85.4 46.3 22.3 156.0 6.8 316.8 10% FY 2007 Actual 533.1 107.1 52.1 20.9 175.1 7.1 362.3 14% FY 2008 Actual 638.5 141.6 64.1 27.6 202.9 9.5 445.7 23% 19% 16.1 11.0 3.1 26.9 1.6 58.7 26% 23% 379.2 75.4 36.5 13.0 133.2 – 258.1 13% 7.4 4.4 2.2 20.1 – 34.1 13% 2 7.1 5.6 2.7 22.6 – 38.0 11% 9.8 6.7 2.8 22.9 1.0 43.2 14% 4 5 12.4 8.6 (0.9) 25.1 1.4 46.6 8% We have elected to report in US dollars due to the geographic spread of ERM’s activities. Net Revenues are the fees earned from consulting, being gross revenues less external project costs. 3 Niche Businesses are split out separately from FY 2006 onwards. At FY 2008 average rates. EBITA: Earnings Before Interest, Tax and Amortization of goodwill. Health and Safety at ERM Over the past year we took additional steps to help ensure the safety of ERM’s work activities. In 12 months we experienced 0.57 medical treatment cases per 100 full-time employees, about a 25% reduction from the previous year. The number of lost workdays per 100 full time employees was 0.09, 40% better than any previous record. While this demonstrates a very positive direction, we continue to aim for zero incidents and have added additional levels of risk management in 2007. ERM employees are sometimes asked to work in locations where substantial attention to travel safety and security is warranted. In 2007 ERM purchased a subscription to the Control Risks Group website, which provides up-to-date information on locations around the world, to supplement our current planning. We consider this to be one of the most important risk management initiatives to date. Our internal health and safety program audit process continued through 2007. By year end, 50% of ERM’s Operating Companies had been audited. We also piloted an Observation and Feedback Program at one of our largest remediation projects. It proved very successful and we are carefully examining the outcome as we consider the broad implementation of safety observation concepts across all of ERM’s practice areas in 2008. We have two fast-growing niche businesses – Information Solutions (IS), which delivers systems for gathering and using Environmental, Health and Safety (EHS) information, and the Certification & Verification Services (CVS) business. The earnings from these niche businesses grew by 19%. During the financial year we increased our ownership of IS from 60% to 80% and bought the remaining shares of the CVS business to reach 100% ownership. Our South African business more than doubled its earnings, and we opened offices in Durban and Pretoria earlier this year. Our Eurasia business grew its earnings by 80%. A significant portion of this growth is driven by multinational corporations investing in the geographic regions serviced by these offices. We ended the financial year with 3,597 staff, an increase of 13%, and 366 Partners, an increase of 7%. We commenced new country operations in Romania and also set up an office in Alaska. Our geographical presence was strengthened in the US, Canada, the UK, Germany and Malaysia with the opening of an additional 13 offices in these countries. 06 ERM Annual Review 2008
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