BROADWALK SERVICES AWARDS 2016[+/-]

This is the ninth year of the Broadwalk Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. Competition was fierce with a strong array of contenders – highlighted by the impressive short lists. The broadly defined services sectors are one of the less well known success stories of the global economy and are amongst the largest private sector employers. These unique awards are another step towards raising the companies and the sector’s profile. We congratulate all the companies and their management teams.

Charlie Cottam - founder of Broadwalk Asset Management.

CategoryWinner
Company of the yearProsegur
CEO and executive team of the yearLindsley Ruth and team, Electrocomponents
Chairman of the yearPaul Lester CBE, Chairman, John Laing Infrastructure Fund, Essentra, Forterra
Deal of the yearUBM Sale of PR Newswire
IPO of the yearAscential
Small & mid cap company of the year4imprint Group
Entrepreneur of the yearDaniel Julien, Chairman, Teleperformance

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ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Super sector head of business services, leisure and transport, UBS
  • Vasco Litchfield, Managing Director, Lazard
  • Jane Sparrow, Director Mid&Small Cap Support Services Research, Barclays
  • Stuart Vincent, Managing Director, Rothschild

BROADWALK ASSET MANAGEMENT

Broadwalk Asset Management LLP is a private investment management company based in London. It was founded in 2007 by Charlie Cottam and manages an absolute return strategy which focuses on investing in publicly quoted Services companies. This includes equities in the Support Services, Construction, Real Estate, IT, Transport and Healthcare sectors.

AWARDS AND SHORT LISTS


Company of the Year [top]

PROSEGUR

 prosegur_logo

Prosegur, a global leader in private security solutions with operations in 18 countries spanning five continents, is celebrating its 40th anniversary this year. Under the leadership of CEO Christian Gut Revoredo since 2008, Prosegur has been pursuing an international growth strategy, acquiring and successfully integrating companies in Europe and Latin America including Spain, South Africa, Portugal and Columbia in 2016. At the same time Prosegur has maintained organic growth in all the three business lines, Cash Management, Security and Alarms. Latin America, and in particularly the cash in transit business, has been a very strong growth driver for Prosegur despite challenging economic conditions. Growth in Alarms business has also been strong. Prosegur recently announced an innovative plan to float a minority of its cash management business, to invest in other areas of growth.

SHORTLISTED

Homeserve

Founded in 1993 by the current CEO Richard Harpin, Homeserve, the international home assistance provider serves 7m customers in UK, USA, France and Spain. In July 2016, as a further step forward in building its pipeline in the US, Homeserve acquired United Service Partners for $75m, adding 0.4m customers and strengthening the customer base in US to 2.7m. The company now provides services to 43m US households through affinity partnerships. A strong partnership pipeline will enable Homeserve to access 80m households in the US in the long term, with 10% market penetration and a potential 20% operating margin, compared with the current 8%. For the financial year ending March 2016, the Group has delivered customer growth of 7% adding an impressive one million to the existing base. The UK business was stabilised with the retention rate broadly maintained at 82% and marginal growth in customers added to the existing base. Interim results I the slower summer period reported continuing progress. The Group is giving particular attention to digital innovation to enable effective product sales through self-serve customer experience.

Informa

Under CEO Stephen Carter, who joined Informa in 2014, and the executive team the Group is pursuing a strategy called the Growth Acceleration Plan (GAP), 2014-2017. The key theme of the Plan is to return all the operating units to growth, and at the same time build capabilities and platforms to scale the business and deliver consistent future performance. GAP aims to touch different facets of the business, namely, management model, operating structure, portfolio management and acquisition, investment and funding strategies. As part of the plan, £50m has been invested in more than 30 initiatives in 2016. For the first nine months of the year, Global Exhibitions Division delivered more than 10% organic growth as a result of scale and international expansion. The Group acquired US based Penton Information Services in September for £1.2bn. With a fast growing portfolio of 30 Exhibitions and 20 attractive digital subscription data brands, Penton enables Informa to add more scale and US presence in the Exhibitions and Business Intelligence Divisions. The deal, funded partly through a rights issue of £715m, improves visibility and sustainability of growth and cash generation.

Relx

Under Erik Engstrom, who joined Relx in 2004 and became CEO in 2009, the Group has been pursuing the goal of building leading positions in secular growth markets globally. To achieve this, the strategy has been to transform the core business through innovative products and expansion in high growth geographies. To stay ahead in the market, 95% of the $500m average annual capex is spent on technology. Organic growth is complemented through targeted acquisitions of assets and specific product sets that are a natural fit to the existing business and enable the Group to harness opportunities in high potential markets. True to the strategic objectives, in the first nine months of the year, Relx has acquired 15 content, data and exhibition assets for a total consideration of £330m, to enable a disciplined evolution of the business. The group, with the help the strong balance sheet, has delivered consistent underlying revenue growth of 3% and return on invested capital between 11 and 13% over the past five years.

Serco

CEO Rupert Soames was appointed in 2014, to revive the services provider which had lost traction in recent years. Under his leadership, the Group embarked on a major strategy overhaul to rebuild trust in the business. Currently, the focus is on reducing the impact of loss making contracts and rebuilding the contract pipeline. The next phase, planned for 2018-2020, will target 5-7% growth in certain sectors. Early signs of progress are visible in better than expected first half results. The £0.9bn new contracts wins and improved new bid opportunities pipeline of £7.3bn, has led to upward revision in guidance for 2016 for revenue of £3bn and trading profit of not less that £80m. Aided by simplified management procedures, improved procurement and greater efficiency in shared services, the targeted cost reduction of £50m for 2016 is proceeding ahead of plan. Focus is on investing in the core areas to build strong service capabilities and improving quality of service delivery. Serco has begun to win new contracts such as the £600m contract facilities management of Barts Health NHS Trust in September, their largest win since 2014.


CEO and executive team of the year [top]

Electrocomponents CEO Lindsley Ruth and team

lindsley

Electrocomponents CEO Lindsley Ruth with Charlie Cottam

CEO Lindsley Ruth joined in April 2015, from $5bn distributor Future Electronics. Under him and the executive team, the company has set the strategic priorities of best-in-class supplier and customer experience to be delivered through high performance culture, operational excellence, innovation and accelerated growth through reinvestment of free cash flow. They have pioneered e-Commerce in the sector with concepts such as online design community and resource centre for engineers. The company has made good progress with its Performance Improvement Plan, and reported underlying headline operating profit growth of 42% for the first half of the financial year. The total annualised savings target is revised from £25m to £30m by March 2018. North America and Asia Pacific has returned to positive growth and most of Europe is seeing good growth. There is still potential for significant improvement in growth and efficiencies as the company proceeds with the implementation of further initiatives.

SHORTLISTED

BBA Aviation - CEO Simon Pryce and the executive team

Under CEO Simon Pryce, who joined in 2007, the business has become significantly more focused as a leading provider of flight support and aftermarket services to the aviation sector. In February US fixed base operator Landmark Aviation was acquired for £2.1bn, funded partly through a £748m rights issue. This acquisition is progressing ahead of plan and the Group is confident of delivering annualised cost savings of $35m. ASIG, the aviation services business was sold to John Menzies for $202m in September. BBA has outperformed the market, with the enlarged Flight Support revenues growing 4% compared to total US flight movements which were up by less than 1%. A further deal has been agreed upon in November to acquire the legacy avionics business from GE Aviation for $61m, adding to its legacy aviation parts offering.

Diploma - CEO Bruce Thompson and the executive team

Diploma is an international supplier of specialised technical products to Life Sciences, Seals and Controls sectors. Under CEO Bruce Thompson, who has led the executive team since 1996, the company retains an entrepreneurial culture with emphasis on agility in response to customer requirements. Through its disciplined approach centred on strong customer relationships and a portfolio of high quality differentiated products, Diploma has achieved five year revenue CAGR of 13% with adjusted operating margin of 18-20%. The growth strategy is based on quantifiable criteria of exceeding IRR of 13% to deliver 20% pre-tax Return on Investment. Targeted acquisitions are undertaken to typically provide synergies through joint purchasing, cross selling and sharing back office functionality to generate profitable growth. Diploma has an impressive record of acquiring one business per year since 2000. The latest addition is specialist controls distributor Cablecraft acquired for £26m in March.

James Fisher - CEO Nick Henry and the executive team

James Fisher is a leading provider of specialist services to marine, oil and gas and other strategically important industries. CEO Nick Henry has been in charge since 2004. Unmatched operational excellence and innovation are the drivers of growth. Realising the opportunities presented by the fast growing marine markets globally, James Fisher has reoriented their strategy to focus on their marine service businesses. Encouragingly, marine support division delivered strong 26% profit growth during the first half of 2016. While the Group has grown organically over the recent years, the company made two bolt on acquisitions in August 2016, Singapore based Lexmar Engineering, and Hughes Sub Surface Engineering in the UK which focuses on offshore renewables.

Rentokil Initial- CEO Andy Ransom and the executive team

Rentokil is one of the largest business services companies globally, providing Pest Control, Hygiene and Workwear services, with operations in over 60 countries. CEO Andy Ransom, who joined the Group in 2008 and was appointed CEO in 2013, has significantly strengthened the balance sheet with the disposal of Initial Facilities in 2014. This has enabled a highly acquisitive programme in emerging and high growth markets, buying 33 businesses and adding incremental revenue of £109m during the nine months of 2016. North America is a key growth market for Rentokil, and on track to generate $1bn of revenues by the end of 2016, two years ahead of plan. Since 2014, the Group has been successfully pursuing the RIGHT WAY plan, targeting sustainable revenue and profit growth.


Chairman of the year [top]

Paul Lester CBE, Chairman, John Laing Infrastructure Fund, Essentra, Forterra

lester

Paul Lester CBE with Charlie Cottam 

Paul Lester CBE is currently Chairman of John Laing Infrastructure Fund, Essentra, Forterra as well as some private companies. Mr Lester was hired to spearhead the £360m float of one of Britain’s biggest building products suppliers, Forterra, in April 2016. He has also been Chairman of John Laing Infrastructure Fund since its £270m flotation in November 2010. During the six years with Mr Lester at the helm, the Fund has grown to a market cap size of £1.2bn. Mr Lester took over as Non-Executive Chairman of Essentra, the packaging and components company, in April 2016, having been Chairman Designate since December 2015. Essentra has encountered difficult trading, and he has recently appointed a new CEO. Mr Lester, who has more than 30 years of experience in senior operational and strategic executive roles, and was CEO of VT Group, before its acquisition by Babcock in 2010.

SHORTLISTED

Electrocomponents - Chairman Peter Johnson

Peter Johnson has been Chairman of Electrocomponents since 2010 and is also Vice-Chairman of the Supervisory Board of building products manufacturer Wienerberger AG. His previous appointments include Chairman of DS Smith, CEO of George Wimpey and The Rugby Group and a Non-Executive Director of SSL International plc. After a period of underperformance, Mr Johnson agreed the company needed new blood and a strong, experienced leader to drive improved performance. As the new CEO he appointed Lindsley Ruth (Broadwalk CEO of the year 2016), who had an excellent track record in global distribution businesses, but had not worked in the UK or in a senior position in publicly-quoted companies.

Mr Johnson has provided Mr Ruth with support and guidance as the CEO of a UK publicly-listed company. He has also led the Board in supporting a radical programme of change, including extensive changes to the senior team and a turnaround programme with the aim of creating a vastly improved customer experience, sharpening management responsibility and lowering costs. Just 18 months after Mr Ruth's appointment, results have improved dramatically, with profits growth in the first half of the financial year 2016/17 up 42 percent and a £50m year-on-year improvement in cash flow.

Micro Focus - Chairman Kevin Loosemore

During 2016, Executive Chairman Kevin Loosemore has led Micro Focus through a year of further positive transformation, with the successful inking of the deal announced in September to acquire the Software Business segment of HPE. The acquisition, with a transaction value of US$ 8.8bn, is expected to close in the third quarter of 2017 and will create one of the largest global pure play infrastructure software companies. The deal fits well with Micro Focus’s strategy to deliver outstanding shareholder returns thanks to its exceptional operating model as the most effective and efficient manager of mainly mature infrastructure software assets. The combined Group, with annual revenues of $4.5bn, will benefit from the highly complementary portfolios of the two companies. Micro Focus will be in a position to deliver more comprehensive solutions to customers, which enable legacy applications to communicate seamlessly with emerging technologies to meet changing customer demands. About 80% of the total assets in the HPE Software deal are mature with a core earnings margin of 21%. The target is to bring this to Micro Focus’s current level of 46%, within three financial years from the close of the deal. The combined entity will be headed by Executive Chairman Loosemore and run by his team under the Micro Focus brand.

Premier Farnell - Chairperson Val Gooding CBE (until October on its acquisition by Avnet)

Val Gooding was appointed Chairperson of the distributor to electronics and maintenance engineers in mid-2011. This was a difficult time for the business particularly towards the end of her term, with variable trading conditions and an increasingly competitive environment. In March 2015 she appointed a new CEO Jos Opdeweegh. With the turnaround under way the company received a cash bid from Datwayler of Switzerland just ahead of the Brexit vote. Then another bid was received from Avnet of the US for £691m, a 12% premium over the earlier offer, and an impressive 51% premium over the undisturbed price. Ms Gooding is also currently Non-Executive Director of Vodafone Group and TUI AG.


Deal of the Year [top]

UBM Sale of PR Newswire for £555m to Cision announced in December 2015

ubm
The sale allows UBM to focus on its high growth B2B event organising operations where it ranks as a global leader. A competitive auction resulted in a very good price, nearly 70% above market expectations for the non-core asset. The leaner Group, as a result of the divestment, is a higher margin, higher growth business. Out of the proceeds £245m was returned to the shareholders through a special dividend. The rest of the proceeds enabled CEO Tim Cobbold to make three bolt-on acquisitions including Business Journals, producer of fashion trade shows in New York and Las Vegas for $69m in April. Post the disposals and acquisitions, in line with the Group’s strategy, Events accounts for 80% of the business compared to 60% previously. Synergies from acquisitions in 2015 are emerging earlier than expected. So far the ‘Events First’ strategy has delivered annual savings of £6.6m. UBM will continue to explore high quality acquisition opportunities.

SHORTLISTED

Avnet Acquisition of Premier Farnell for £691m, announced in July 2016

Avnet, one of the largest global providers of electronic components, enterprise computer solutions and embedded technology and services, has acquired Premier Farnell for £691m. Premier Farnell is a leading multi-channel, distributor of high-service electronic components with a comprehensive product range and global footprint. The deal has been launched under the stewardship of Avnet’s new CEO William Amelio. The all-cash offer is for 185p per share. The companies complement each other very well in terms of product range, distribution channels and geographic footprint. The ability to service customers earlier in the design process is becoming increasingly important. Avnet’s strategy is to provide a differentiated digital experience throughout the product life cycle starting right from the idea generation stage. Premier Farnell’s pioneering online services will combine with Avnet’s best in class supply chain to create industry leading customer experience. This will enable the Group to capture more market share earlier in the design process and accelerate global growth. The transaction is expected to be EPS accretive right from the beginning and will support Avnet’s return on capital goals. Revenue synergies will emerge from cross selling and line fill effects. The combined Group will be able to realise additional economies of scale. The capital structure will be conservative.

FedEx Acquisition of TNT Express for €4.4bn, announced in May 2016

FedEx, one of the world’s largest express delivery companies has acquired TNT Express, the fourth largest global parcel player, in an all cash offer of €8 per share, a premium of 33% over the prevailing TNT share price. The deal was planned and executed under the leadership of Frederick Smith, Chairman and CEO of FedEx. By bringing TNT’s expansive European network with 700 flights and 55,000 road trips each week into its fold, FedEx has gained substantial ground in Europe and has become one of the most important delivery companies in the continent. The individual companies’ capabilities are largely complementary; FedEx’s strength is in US domestic and extra-EEA international services whereas TNT’s focus is in intra-European services. With better trans-Atlantic coverage, customers will benefit from ability to conduct business on a global scale. Consumers and SMEs in Europe and other regions will benefit from a more comprehensive e-commerce offering. The deal will be earnings accretive in 2018.

Merger of Technip and FMC Technologies to create a US$13bn market cap, announced in May 2016

This merger will create one of the largest oil services company in the world. It has been planned by Thierry Pilenko, Chairman and CEO of the Technip and John Gremp, Chairman and CEO of FMC Technologies. The key attraction is the high level of vertical integration from complementary technologies and capabilities. The merger will also facilitate sustained cost reduction, essential for survival in this severe industry downturn. The share for share transaction will also result in one of the strongest balance sheets in the industry. The expected $400m synergies annually should enable the Group to make deep sea projects viable in a low oil price scenario of below $60 per barrel. The deal comes at a time when others have failed due to competition concerns. There is no overlap in offerings or competition between Technip and FMC Technologies, though both have expertise in subsea technology. The merger is expected to be complete in 2017.

gategroup sale to HNA Group, China for CHF 1.4bn ($1.5bn), announced in April 2016

gategroup, the second largest inflight services provider globally, has been bought by Chinese conglomerate HNA Group, a Fortune 500 company and a leader in aviation and tourism. The offer price was at a 38% above the weighted average share price over the 60 days prior to announcement of the deal and over double the price a year and a half before the bid. After a difficult year in 2015, gategroup under Chairman Andreas Schmid, launched Plan 2020 with the aim of strengthening their leadership position, delivering market leading technology through innovation, growing in emerging markets and driving cost efficiencies. HNA are now looking to grow gategroup’s presence in Asia, and partly diversify from the more mature European and US operations.


IPO of the year [top]

Ascential

ascential
Ascential’s IPO raised £183m at 200p per share in February 2016 BofA Merrill Lynch and Goldman Sachs were the Joint Global Coordinators, Joint Bookrunners and Joint Sponsors. BNP Paribas, Deutsche Bank and Numis Securities were Joint Bookrunners and Moelis acted as Financial Adviser to Guardian Media Group.

Ascential, previously part of an extensively restructured Emap, has been led by CEO Duncan Painter since October 2011. It is a global leader in Events and Information Services products. 84% of Ascential’s revenues is generated from products ranked number one in their respective markets. The portfolio includes the Cannes Lions advertising festival, the financial services event Money 20/20 and the fashion trends forecasting site WGSN. A continued focus on enhancement of product range and operational excellence enables the company to penetrate deeper into end markets and deliver organic growth. Ascential will also engage in bolt on acquisitions. As part of this strategy, Ascential has acquired One Click Retail, the US based provider of e-commerce analytics, in August for an intial consideration of $44m and future earnouts. After two further successful placings Apax and GMG own 21%.

SHORTLISTED

Ahlsell - Ahlsell's IPO in October on Nasdaq Stockholm Exchange was Sweden’s largest in 16 years. It raised SEK6.9bn (US$ 770m) at SEK 46 per share resulting in a market capitalisation of SEK 20bn ($2.2bn). Goldman Sachs and Nordea were Joint Global Coordinators and Joint Bookrunners. Carnegie, Danske Bank, Deutsche Bank, JP Morgan and UBS were Joint Bookrunners and ABG, DNB and SEB, Co-Lead Managers.

Ahlsell is a market leader in the Nordic wholesale distributor of heating, ventilation, air conditioning, plumbing and electrical tools and supplies with an estimated 21% market share. The company is headed by President and CEO Johan Nilsson who joined in 2008 and became CEO in 2015. Ahlsell operates a one-stop-shop concept with an extensive range of products, sales channels and highly optimised delivery methods. The product portfolio is complemented with specialised value added services such as flexible storage solutions. Ahlsell has grown primarily through its M&A strategy. Between 2003 and 2016, it has acquired 51 companies. In 2015, Ahlsell distributed approximately 380,000 product articles from 3,300 suppliers to 100,000 customers. The listed shares represent 30% of the total number of shares of the company. Major shareholder CVC retains 60.4% of shareholding after floatation.

Biffa -Biffa in October raised £262m at 180p per share giving the company a market capitalisation of £450m. Citigroup and JP Morgan are Joint Global Coordinators and HSBC joins them as Joint Bookrunner.

Biffa is a leading integrated waste management specialist providing collection, landfill, recycling and special waste services to local authorities and industrial and commercial clients in UK. Biffa collects more than 6m tonnes of waste annually from 130,000 customers. In 2014, Biffa’s energy from waste services enabled Sainsbury to take one of its stores off the National Grid. The IPO proceeds will be mostly channelled to reduce debt to the targeted level of 2 times EBITDA. CEO Ian Wakelin was appointed in 2010 and has since driven a strategy of organic as well as acquisition led growth by expanding service offerings. In order to consolidate their market position, Biffa has acquired two businesses this year, Cory Environment Municipal Services in June and Blakeley Recycling in October. The 100 year old company, in 2012, agreed to a restructuring with senior lenders Avenue Capital Group, Angelo Gordon and Bain Capital, through a debt equity swap which reduced debt from £1.1bn to £520m. These firms continue to own 53%.

Countryside Properties - Countryside Properties raised £114m from the IPO in February at 235p per share. JP Morgan Cazenove, Barclays and Numis were the Joint Coordinators and Peel Hunt, the Bookrunner.

Countryside’s property portfolio comprises of middle and upper end housing, primarily in London and South East of England. 50% of the company revenues are from urban regeneration business on a partnership basis that delivers private and affordable homes in and around London and in North West England. Private equity owner Oaktree Capital Management in 2013 acquired a majority stake controlled by Lloyds Banking Group. Following this, the company refined its strategy and took steps to progressively exit from commercial and design build projects and focus on Housebuilding and Urban Regeneration. Under the leadership of CEO Ian Sutcliffe, Countryside has delivered strong growth in recent years. In February 2014, Countryside acquired Millgate and successfully integrated it into the Housebuilding division. Countryside completed 2,364 units in the year to September 2015, up 16% compared to the previous year. Revenue grew 31% to a record £616m and operating profit almost doubled to £91m. Countryside’s target is 1,200 housing completions per annum by the financial year 2018. In the Urban Regeneration business, the target is 2,400 completions annually by financial year 2018. The focus will be to further improve margins and return on capital employed through higher volumes, better product mix and improved efficiency.

The market capitalisation at IPO was £1bn. Oaktree retains 56.1% of the shareholding.

Nets - Nets’ IPO in September on Nasdaq Copenhagen Exchange raised DKK 15.8bn (US$2.4bn) at DKK 150 per share. The third largest IPO in Europe this year had Deutsche Bank, Morgan Stanley and Nordea as Joint Global Coordinators and Lazard as Financial Adviser.

Nets is a leading provider of payment processing services in the Nordics. In 2015, the company processed more than 7.3bn card transactions for more than 300,000 businesses and 240 banks. Bo Nilsson, who joined in 2013 and became CEO in 2014, has transformed the business with seven acquisitions, streamlining personnel and investing more than DKK 800m in information technology. Part of the proceeds from IPO were used to reduce the net debt to EBITDA to 3.75x, with a target of 2.0x and 2.5x in the medium term. Nets will also invest the capital raised in growth markets and bolt on acquisitions. The strategy is to focus on the core Nordic region and to grow through innovative products and solutions. Nordics present an attractive market for Nets with its high digital literacy, and minimal timeframe required to implement new technology solutions. The company targets medium term organic growth of 5 to 6% annually and EBITDA margin in the high 30s. The market capitalisation at IPO was DKK 30bn (US$ 4.5bn) with a free float of 52%. Following the offer, Advent and Bain hold a 39.9%.


Small & mid-cap company of the year [top]

4imprint Group

midcaps 2016

Charlie Cottam with 4imprint Finance Director David Seekings

4imprint is a leading distributor of promotional products for corporate customers in North America and the UK. The Group strategy is to enhance their market leadership position in fragmented markets. Kevin Lyons-Tarr who has been with the business since 1991, and pioneered launch of the internet offering, became CEO in March 2015. He has done an outstanding job growing the US promotional products direct marketing operation which is currently 96% of total revenue. Adjusted operating profit for the Group direct marketing operations grew 560% in six years, from $5.6m in 2009 to $37m in 2015. North America and UK both experienced organic revenue growth with total revenue increasing 17% in the first half of the year 2016. Going forward the strategy will be to continuously deliver organic growth through investments in marketing. 4imprint has also successfully completed a pension de-risking exercise.

SHORTLISTED

John Menzies

John Menzies’ expertise is in providing time critical logistics services including ground handling, cargo handling, cargo forwarding and distribution. The Aviation Division services 143 airports globally and the Distribution Division delivers 110 million units annually. Giles Wilson, who has been with Menzies for five years in different capacities, was appointed CEO in June 2016. Under his leadership, the Group is keen to expand to emerging markets with potential for high air traffic growth. In Distribution, resources have been reallocated to favouring high growth areas to generate maximum returns. In line with the objective to enhance its global footprint, Menzies acquired ASIG from BBA in September for US$ 202m part funded by a rights issue of £75m. ASIG is a leading provider of fuel management services at major international airports, in 2016, with annual revenue of $416m and pre-tax profits of $18m. The deal is expected to deliver pre-tax cost synergies of c£10.5m in the financial year ending December 2018, and significantly enhance earnings per share next year.

Microgen

The Group delivered revenue growth of 23% during the first half of the year. It owns two leading software businesses. The Aptitude Software supports corporate finance operations across industries. Tom Crawford, who has been with the Group since 2003, has headed Aptitude since January 2016. Aptitude’s strategy is to grow through installation of specialised financial applications. Aptitude has been able to deliver 27% growth in recurring software revenue and a stellar 49% growth in implementation. Three of the four largest US telcos have the licence for Aptitude’s Revenue Recognition Engine. The Financial Systems Division provides application management services to global Wealth Management sector and UK payment market. This Division concentrates on Trust and Fund Administration (T&FA). Simon Baines, who joined Microgen in 2010, has been leading the Financial Systems Division since January 2016. Financial Systems has been increasing their presence in T&FA sector and currently has 350 customers in 30 countries. The Division delivered revenue growth of 11% in the first half of the year. In line with strategy, the proportion of revenue generated from T&FA has increased to 51% in the first half. To enhance offerings in the T&FA space, the Division has made 4 acquisitions in the past two years, the last one being Infoscreen, for €1.8m.

Tribal Group

Tribal Group is a market leading global provider of education technology solutions. Under Ian Bowles, who joined Tribal as CEO in February, the business is being streamlined to focus on core activities. As part of the reorganisation efforts, the Synergy business has been sold for £20m, and along with the rights issue enabled Tribal to raise £38.5m to rebuild the balance sheet and fund future growth plans. Tribal’s refreshed product strategy is centred on five priorities including data migration from existing systems, cloud based on-premise deployment, language customisation, modular design and database independence. This should lead to improved return on investment and to realise the goal of becoming a world-class business. The first half of 2016 has seen annual recurring revenues grow by 14%. Better product mix has led to improvement in gross margins. The results show good signs of progress.

YouGov

YouGov is an online market research firm with operations in Europe, North America, Asia Pacific and Middle East. The company was co-founded in 2000 by Stephan Shakespeare who became CEO in 2010 and in 2005 listed on AIM. YouGov’s product portfolio includes comprehensive market intelligence, planning and segmentation tools, and the brand perception tracker is powered by data gathered from millions of people participating in their online community. The company has successfully expanded internationally. In 2006, YouGov acquired Dubai based Siraj and subsequently expanded in the US and Asia Pacific through acquisitions and opened an office in Paris. The strategy of improving the product mix through a continuous process of innovation is working well, with new markets planned for the future. For the year ended July 2016, underpinning the robustness of the business model, the company experienced strong revenue growth of 16% and adjusted operating profit growth of 27%.


Entrepreneur of the year  [top]

Daniel Julien - Chairman and Founder, Teleperformance

entrepreneur

Teleperformance Chairman and Founder Daniel Julien

Chairman Daniel Julien founded Teleperformance in 1978. He has been instrumental in the transformation of the Group into the undisputed leader in global outsourced customer experience management and contact centre services. Teleperformance commands the largest geographic footprint among outsourcers, employing 190,000 personnel in more than 311 facilities spanning 65 countries, serving more than 850 clients and touching 35% of world population. Apart from size, Teleperformance also scores in cohesiveness of service offerings and exceeding customer expectations. Under the guidance of Mr Julien, the team relentlessly strives for excellence, leveraging their international experience, global reach, innovation capabilities, omnichannel strategy, marketing expertise and financial stability. In 2013, Mr Julian appointed long standing employee Paulo César Salles Vasques as CEO. Under challenging conditions globally, Teleperformance outperformed the market in 2015, with record revenue growth, organic growth of 7.5% and EBITA growth of 32%. In the first half of this year, the Group delivered strong organic growth of 6.8%, and improved recurring EBITA margins. Teleperformance has been on a path of consolidation in a highly fragmented but growing market through selective high profile acquisitions. In July 2014, to achieve better sector diversification and presence in the US, the Group acquired Aegis USA, a major outsourcing and technology company with $400m revenue, for $610m. In August 2016 the company completed another significant deal when it acquired US high-end BPO services company Language Line Solutions for US$1.5bn. With annual revenue of $388m and expected 2015-2020 revenue CAGR of more than 10%, this transaction ties in well with Mr Julien’s vision to further grow Teleperformance to a €5bn revenue company.


Previous Awards

previous

The finalists of all years can be found on the website www.broadwalkam.com

Disclaimers

Advisory Panel

The firms with whom the individuals on the advisory panel are employed; Barclays, Lazard & Co., Limited, Rothschild and UBS Limited, (an affiliate of UBS AG), may have corporate relationships with companies included in these awards. The inclusion of a company in the awards is not in any way an investment recommendation to buy or sell shares in these companies or to engage in any other business activity or arrangement with them. The inclusion of these companies does not necessarily represent the views of these firms and should not in any way be attributed to them.

Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP which is authorised and regulated by the FCA. The Awards do not constitute investment advice. Funds that are controlled by Broadwalk Asset Management LLP and its members may have positions in some of the companies mentioned in the Awards. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

BROADWALK SERVICES AWARDS 2015[+/-]

This is the eighth year of the Broadwalk Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. As usual, competition was fierce with a strong array of contenders – highlighted by the impressive short lists. The broadly defined services sectors are one of the less well known success stories of the economy and are amongst the largest private sector employers. These awards are another step towards raising their and the sector’s profile.

Charlie Cottam - founder of Broadwalk Asset Management.

CategoryWinner
Company of the yearRyanair
CEO and executive team of the yearPim Vervaat and team, RPC Group
Chairman of the yearKevin Loosemore, Micro Focus
Deal of the yearTelecity acquisition by Equinix
IPO of the yearWorldpay Group
Small & mid cap company of the yearJames Halstead
Entrepreneur of the yearMike Slade, CEO Helical Bar

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ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Super sector head of business services, leisure and transport, UBS
  • Vasco Litchfield, Managing Director, Lazard
  • Jane Sparrow, Director Mid&Small Cap Support Services Research, Barclays
  • Stuart Vincent, Managing Director, Rothschild

BROADWALK ASSET MANAGEMENT

Broadwalk Asset Management LLP is a private investment management company based in London. It was founded in 2007 by Charlie Cottam and manages an absolute return strategy which focuses on investing in publicly quoted Services companies. This includes equities in the Support Services, Construction, Real Estate, IT, Transport and Healthcare sectors.

AWARDS AND SHORT LISTS


Company of the Year [top]

RYANAIR

 ryanair_logo

Ryanair

In a highly competitive marketplace Ryanair has established itself as Europe’s lowest fares and cost carrier.  It is number one for traffic, coverage and customer service.  October traffic statistics were a record, with strong passenger growth to 9.68m customers and a load factor of 94%.  CEO Michael O’Leary has succeeded in raising the perception of its service offering under the "Always Getting Better" customer experience programme.  Performance was very strong in peak summer trading partly due to the lower oil price, weak Euro and poor UK weather. However shareholders and analysts were thoughtfully urged to avoid irrational exuberance as it executed its ambitious growth plans in an expected tough pricing environment this winter.

SHORTLISTED

Regus

Under CEO Mark Dixon, Regus has established itself as the dominant global operator in the rapidly growing, flexible workplace sector with over 43m sq ft in more than 2,580 locations, having added 341 in the last year. The management team, identified in 1998 the significant opportunities from structural changes in the marketplace with a shift towards flexible work. Results have been impressive and Regus is now the undisputed market leader. Revenues have doubled over the last five years alone. Investment returns remain above the cost of capital. The group is now focused on increased use of partnering in its new locations, which reduces capex and improves returns.

Elior

Founded in 1991, Elior has established itself as one of the world’s leading operators in the contracted food and support services industry. The expansion of the group is highlighted by revenues in 2014 of €5.3bn in 13 countries with its 106,000 employees serving 3.8m customers daily. Operating in high-growth markets, there remain numerous opportunities open to the group. In September, Philippe Salle, the CEO since March, outlined the strategic plan for 2016-2020 with a new organisational structure to accelerate growth, reduce costs and support operational excellence. Elior looks well placed to consolidate its leading position in its key markets.

Savills

Under CEO Jeremy Helsby, Savills has positioned itself well as an international real estate advisor.  The group has grown substantially, given the significant increase in capital allocated to real estate worldwide.  Management has also successfully diversified its business model into less cyclical activities (property management, consultancy and investment management) as well its traditional transactional activities.  It has made number of attractive bolt-on acquisitions this year in Europe. Last year’s acquisition of Studley in the US for $260m has bedded in well and has strongly enhanced its global platform.


CEO and executive team of the year [top]

RPC Group CEO Pim Vervaat and team

pim

RPC Group CEO Pim Vervaat

RPC is a leading plastic products design and engineering company for both packaging and non-packaging markets.  Under CEO Pim Vervaat and the executive team, the group is pursuing a focused growth strategy under its Vision 2020. The key elements to this strategy are continued organic growth in selected markets of the packaging markets, selective consolidation, and also to create a meaningful presence outside Europe where the growth rates are higher. This December the group announced the €650m acquisition of Global Closure Systems, part funded by a £232m rights issue, which adds closures to its current container range, where there should be cross selling opportunities.  This comes after the €386m acquisition of Promens last year which strengthened market positions in core European end markets, and produced very attractive synergies.

SHORTLISTED

Petrofac - CEO and Founder Ayman Asafri and the executive team

Petrofac is a leading international service provider to the oil and gas sector. CEO and Founder Ayman Asafri has positioned the group well despite an extremely challenging backdrop following the fall in the oil price. This included terminating the shipyard contract to build a new multi-purpose offshore vessel in October. The strong revenue growth at the interims, up 25% to $3.2bn reflected prior contract wins, but the group has secured over $6bn of new orders in the current year. With a total order backlog of $21.6bn and a strong Middle Eastern presence, the group has considerably better visibility than a number of its oil services peers. In overall terms, the group’s strategy has been vindicated as it is well positioned to capitalise on a low oil price environment in the future.

Cerved - CEO Gianandrea De Bernardis and the executive team

Cerved is market leader in the Italian credit information market, with a consistent track record of growth and impressive margin improvement under CEO Gianandrea De Bernardis since mid-2009. The group’s focused and careful strategy to strengthen its market position has been vindicated, with strong performance since the 2014 flotation. Recent results showed continued strong growth and management reiterated 2015 EBITDA guidance. Under Gianandrea De Bernardis and the executive team the company has been well positioned for Italian banking and insolvency deregulation. In November CVC Capital was able to sell down its residual shareholding leading to a 100% free float.

NCC - CEO Rob Cotton and the executive team

Rob Cotton was appointed CEO in 2003 ahead of the flotation in 2004. Under him and the executive team NCC has an impressive track record of growth as a global information assurance specialist providing organisations with a suite of expert escrow, security and risk consultancy, website performance, software testing and domain services. NCC has undertaken a sequence of acquisitions including in 2015 Accumuli, a leading IT security and risk management business in the UK. The group has just completed the acquisition of Fox-IT, a leading provider of high-end cyber security solutions for a total consideration of €133m, funded by a £126m placing. This enables NCC to become the leading player in the expanding global cyber security market and the complementary client bases create multiple cross-selling opportunities. NCC has also just launched the secure internet domain .trust.

ISS - CEO Jeff Gravenhorst and the executive team

ISS is one of the world’s leading facility services companies, operating in a $1 trillion market. ISS seeks to add value to clients through an integrated, self-delivery model. CEO Jeff Gravenhorst has been with the group since 2002, becoming CEO in 2010, ahead of the successful flotation last year. He and the team have focused on strong cash flow and generating shareholder value, demonstrated by a 50% payout policy. Despite difficult macroeconomic conditions, management has generated organic growth, an improvement in operating margin and continuing strong cash flow. Most recent interims showed continued strong growth, the group also secured a number of major new integrated facility services contracts and extensions including Danske Bank in the Nordics and Eastern Europe and a major contract with Danish State Railways.


Chairman of the year [top]

Micro Focus Executive Chairman Kevin Loosemore

loosemoore

Kevin Loosemore with Charlie Cottam 

2015 has been a transformational year for the global infrastructure software business, with the $2.5bn acquisition of The Attachmate Group announced in September 2014 bringing Micro Focus into the top 15 by size worldwide of similar businesses.   The acquisition should allow Kevin Loosemore to deliver significantly higher returns to shareholders in the medium term, even above its target of 15%-20%.  Recent first half  results were ahead of expectations with strong cash flow enabling early repayment of acquisition related debt bringing leverage down to 2.6x with a target of 2.5x.

SHORTLISTED

Unite Group - Chairman Phil White

Phil White joined the Unite board in May 2009 at a difficult time for the company due to a high level of debt, and extreme investor caution for real estate in general including student housing. He worked closely with CEO Mark Allan to restore the balance sheet and since then the company has re-established itself as the UK’s leading manager and developer of student accommodation. The management team has delivered against its three strategic objectives: to be the most trusted brand in its sector, to operate the highest quality estate and maintain a strong capital structure. A well received 10% share placing in April at 570p (currently 638p), raised £115m. The proceeds were used to acquire new sites for its 2018 development pipeline and buy units in a specialist fund, The Unite Student Accommodation Fund, increasing its exposure to an established, high quality, predominantly regional portfolio with excellent growth prospects and a low fixed cost capital structure. Phil White is also Chairman of Kier and Lookers.

Eurofins  - Chairman, CEO and Founder Dr Gilles Martin

Eurofins provides a unique range of analytical testing services, with a particular focus on fast growing pharmaceutical, food and environmental testing markets, all of which have a strong impact on human health. Results for the nine months reflect continued momentum across all of its businesses with growth above target. It completed 17 acquisitions in 2015 with total annualised revenues of €570m, reinforcing its leadership in the higher-growth niche areas of the clinical testing market (Boston Heart Diagnostic, Diathrix, Emory Genetics Lab, BioAccess and Biomnis). Having consistently delivered strong profitable growth, the group under Dr. Gilles Martin has doubled revenues three times since 2004. Sales and EBITDA have multiplied ten-fold since 2004. The group has the ambition to double in size by 2020 from 2015 to €4bn turnover, and will consider raising further equity in favourable market conditions.

Xchanging  - Chairman Geoff Unwin

Geoff Unwin joined CEO Ken Lever in 2011 to lead Xchanging’s drive to curtail losses and exit unprofitable legacy business as it looks to establish itself as a leading business technology and services provider. The restructuring programme was completed last year. Interims results in July demonstrated the progress, with the majority of the group performing in line or ahead of expectations. The progress achieved was highlighted in October 2015 when the group was subject to a recommended cash offer from Capita at £412m, a premium of 44% on the share price. Since then two US companies, Computer Sciences and Ebix have offered higher prices.

Rightmove - Chairman Scott Forbes

Rightmove is the UK’s number one property website. In many ways its development and technologic innovation has revolutionised the property transaction market. Scott Forbes was appointed to the board in 2005 ahead of the group’s flotation in 2006. His tenure has involved steering the group through changes to the Home Information packs and the global recession that was particularly difficult for Rightmove’s estate agent customers. Since the group’s IPO the board has had a policy of consistently returned excess cash to shareholders, which is now over £500m. Scott Forbes is also Chairman of Orbitz Worldwide, Innasol Group and Bridge Capital Advisors.


Deal of the Year [top]

Telecity acquisition by Equinix for £2.4bn, announced in May .

telecity

Telecity Executive Chairman John Hughes with Charlie Cottam

The global leader in carrier neutral colocation datacentres, Equinix, under Executive Chairman John Hughes, has agreed a cash and share offer for Telecity Group, which had previously negotiated a merger with European market number three InterXion.  It represents a premium of 35% to the closing price of Telecity prior to a previous merger proposal.  Equinix has obtained clearance from the European Commission. The transaction will give Equinix a stronger European platform with increased network and cloud density. While expected synergies have not yet been disclosed they are likely to be significant.  The transaction is seen by Equinix as providing the opportunity to strengthen its platform for increased network and cloud density.

SHORTLISTED

Capgemini acquisition of IGATE for a total consideration of $4.0bn, announced in April

The acquisition of IGATE consolidates Capgemini’s position as a leading company in IT services, outsourcing and consulting, with combined revenues of €12.5bn. North America becomes the largest region, accounting for 30% of combined revenue in 2015. The transaction added 12% to Capgemini’s earnings forecasts in 2016 and 16% in 2017. Chairman and CEO Paul Hermelin has achieved both a strategic and financially attractive deal involving relatively straightforward execution with no antitrust issues. Total synergies after three years are forecast to be between $175m-$255m as a result of revenue, capacity and cost savings.

Kier acquisition of Mouchel for £387m, announced in April

The acquisition of Mouchel represents a natural fit, reinforcing Kier’s strong position in the local authority roads market under CEO Haydn Mursell. With an annual cost synergy assumption of £10m per annum ending in June 2017, the transaction should meet Kier’s pre-tax ROCE target of 15%. England’s Roads Investment Strategy plans to double the investment expenditure on strategic roads from 2012-2019. The acquisition which was conservatively financed through a rights issue, raising £340m, with pro-forma net debt in June 2015 of only 1.3x EBITDA.

Aer Lingus acquisition by IAG for €1.4bn, announced in May

IAG CEO Willie Walsh had previously been CEO of Aer Lingus so knew the business extremely well. Aer Lingus will benefit from being part of the larger group. Aer Lingus contributed €45m to group operating profit in the third quarter of 2015. The synergies include cost savings, given additional scale and shared services as well as coordinated hub to hub flying to optimise traffic flows. The deal required delicate negotiations including with the Irish government who owned 25% of Aer Lingus. It will continue to operate as a separate business, providing connectivity to Ireland but allows Aer Lingus to join the Oneworld Alliance, of which British Airways and Iberia are members. It will also enable Aer Lingus to join IAG’s business over the North Atlantic with American Airlines, leveraging the natural traffic flows between Ireland and the US.


IPO of the year [top]

Worldpay

worldpay
Charlie Cottam with Worldpay’s CEO Philip Jansen
Offer in October raised £2.4bn at 240p. BofA Merrill Lynch, Goldman Sachs International and Morgan Stanley acted as Joint Global Coordinators and Joint Bookrunner, with Barclays, Credit Suisse and UBS Investment Bank also Joint Bookrunners. Lazard acted as Financial Adviser to Worldpay.

Worldpay, under CEO Philip Jansen, is a leader in global payments, providing a broad range of technology-led solutions to its merchant customers to allow them to accept payments of almost any type, across multiple payment channels, nearly anywhere in the world. As one of the few global businesses able to offer functionality in most aspects of payment acceptance, Worldpay’s management has identified substantial opportunities to capitalise on the significant growth in this marketplace. On a typical day Worldpay processes 31 million mobile, online and in-store transactions.

The IPO was the largest in the UK this year, with a market value at the offer price of nearly £5bn [initial market cap was £4.8bn]. The group was previously owned by two private equity owners, Advent and Bain, who bought it from RBS five years ago and still retain a c42% holding in the business. The share price has performed well since IPO, currently standing at 292p, an increase of c22%.

SHORTLISTED

Aena - €4.2bn raised at €58 in February, Bank of America Merrill Lynch, Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA, HSBC Holdings, JP Morgan Chase & Co, Goldman Sachs Group Inc and Morgan Stanley managed the IPO.

Aena is the world’s number one airport operator by passenger volume, running 46 airports in Spain and participating in the management of 15 more in Europe and the Americas. The group is a classic recovery play, following significant restructuring by the group, it moved from losses in 2011 to profit in 2013. Aena was valued at €8.7bn on flotation. The IPO was the largest in Spain in more than seven years and was oversubscribed five-fold. It enabled the Spanish government to sell 49%, while retaining 51%. Results for the nine months in 2015 showed a consolidation of the recovery in domestic and international passengers, close to the 2007 peak. Having invested heavily over the last decade to make its airports the most modern and competitive, the group has necessary capacity to absorb future growth in traffic and capex will decline. The group stands to benefit from further improvements in the economic backdrop with increased demand from both domestic and international passengers.

Wizz Air - Raised €150m in March, priced at £11.50. Joint Global Co-ordinators and Bookrunners were Barclays Bank, Citigroup Global Markets, JP Morgan Securities and Nomura International.

Since its first flight in 2004, Wizz Air under CEO Jozsef Varadi has become the largest low-cost carrier in Central and Eastern Europe (CEE), with a market share of 40%. Management identified the opportunities that the accession of a number of CEE countries to the EU would stimulate a sharp increase in traffic to Western Europe. The most recent results showed record first half profitability on passenger growth of 20% to 10.7m passengers. The group has continued to expand its network, now offering more than 390 routes to 38 countries from 22 bases. The group’s ultra-low cost model gives it clear cost advantage versus its peers, enabling low fares as well as a relatively high growth rate. Indigo Partners, a US private equity firm retains 13%.

BCA Marketplace - Share placing raised £1.02bn in April. Cenkos Securities acted as Nominated adviser, joint financial adviser and joint broker, in conjunction with Zeus Capital as joint broker and Merrill Lynch International as joint financial adviser for the acquisition and debt financing.

BCA Markeplace listed via a reverse takeover of Haversham Holdings, valuing it at £1.2bn, and moved to the Full List, after an unsuccessful attempt to float the business in 2014. BCA is the market-leading business with a unique position in the used vehicle marketplace in the UK and Europe. The changes currently underway in the European marketplace should offer significant growth opportunities. Executive Chairman Avril Palmer-Baunack stated that the trading performance of the group since the acquisition has been positive, reflecting previous expectations for volume growth. US Private Equity fund, Clayton, Dubilier & Rice sold its shareholding in BCA, having seen an 85% increase in EBITDA under its ownership.

Sanne Group  - Raised £142m in April, priced at 200p. Investec Bank acted as sponsor, financial adviser, sole bookrunner and broker.

Sanne is a specialist global provider of outsourced corporate and fund administration, reporting and fiduciary services. The Group, led by CEO Dean Godwin, targets alternative asset markets that play an increasingly important role in investment portfolios, as investors seek out return that are uncorrelated with equities. Founded in 1988, Sanne has built a global network of regulated business within nine leading financial jurisdictions, employing more than 350 experienced staff and administering structures and funds that have in excess of €100bn of assets. The Group has continued to record strong revenue and underlying profit growth since the IPO and trading has been in line with expectations. The share price is up over 90% since flotation. The Group sees strong future growth driven by market expansion as well as a growing trend towards outsourcing resulting from a demand for independent compliance monitoring and oversight within an increasingly complex cross-border regulatory landscape.


Small & mid-cap company of the year [top]

James Halstead

halstead 
James Halstead, a major international manufacturer of commercial, contract and consumer flooring, reported record turnover and profit before tax in its centenary year.  The group dispatched 20 million sq m of flooring.  Under four generations, management has built a portfolio of global brands such as Polyflor and acquired complementary businesses in Europe and the Far East.  The quality of its services is highlighted the considerable amount of repeat business it secures.  Executive Chairman Geoffrey Halstead remains positive about the outlook, given the strength of its distribution network and its services. To celebrate 100 years of trading and the strong balance sheet the company declared a 1.5% special dividend in November.

SHORTLISTED

Staffline

Under CEO, Andy Hogarth, Staffline has become a leading provider of services to the Government-funded Welfare to Work and Skills programmes. The acquisition of A4e in April for £34.5m significantly expanded its Employability division and the group has become one of the largest providers of Work Programmes in the UK. The full impact will be seen in the second half of 2015 and is expected to be significantly earnings enhancing going forward. The market reaction subsequently has been favourable with the share price performing exceptionally well since the transaction in April, rising from 984p to 1547p currently.

CVS Group

Under CEO, Simon Innes, CVS has become the UK’s leading provider of integrated veterinary services with a 12% market share with 333 surgeries, up from 128 at the time of the IPO in 2007. The group now has four key business areas: veterinary practices, diagnostic laboratories, pet crematoria and an on-line dispensary. The practice division is also supported by the Group’s referrals business which provides high value specialist services both to its own and third party practices and is a core area of development focus for the business. CVS is looking for further acquisitions as it continues to consolidate its position in a still fragmented market, allowing practitioners to concentrate on service provision while CVS takes care of the administrative functions.

Ricardo

Ricardo is a global engineering, technical and environmental consultancy, which develops applications and solutions to meet the challenges faced by the transportation, energy and resource sectors. Under CEO, Dave Shemmans, it has delivered a strong set of financial results with both revenue and profit growth of 9% - driven by global megatrends such as air quality, climate change, resource scarcity, urbanisation and energy security. The group has made four acquisitions since October 2014 for a total of £46m. The group has made a good start to the current year with strong order book intake.

Next Fifteen Communications

Next Fifteen is a digital communications group. Under CEO Tim Dyson, it has made significant progress this year, following an earlier equity placing to fund three acquisitions in the brand marketing, consultancy and advertising technology sectors. Recent results showed profits up 30% and revenues up over 18%. There was strong organic growth in its North American business, as well as doubling of profitability in Asia Pacific. In the UK, it benefitted from the contribution from strategic acquisitions and margin improvements. The group remains confident about the outlook.


Entrepreneur of the year  [top]

Mike Slade - CEO Helical Bar

entrepreneur

Charlie Cottam with Helical Bar CEO Mike Slade

Mike Slade joined the board of Helical Bar in 1984 when the share price was 5p on an adjusted basis. With a tightly focused team he has generated immense value over several cycles with a development led approach over multiple types of property from West End office to retirement villages. Numis have estimated £1 invested in Helical in 1984 would be worth £1,100 today, a compound annual return of c19% a year. Often biding his time, he has described the company as "constantly reinventing itself" to find the most attractive returns. In 2005 he retuned £100m to shareholders ahead of the sharp valuation declines seen in 2008, and then raised 10% of new equity (£29m) close to the bottom in January 2009. On turning 70 he is retiring as CEO to become Non-Executive Chairman in July 2016, and will be succeeded by Gerald Kaye who joined the group as Development Director in 1994. He is also President of the charity LandAid.


Previous Awards

previousDisclaimers 2015

Advisory Panel

All the firms represented by an individual on the advisory panel; Barclays, Lazard & Co., Limited, Rothschild and UBS Limited, (an affiliate of UBS AG), may have corporate relationships with companies included in these awards. The inclusion of a company in the awards is not in any way an investment recommendation to buy or sell shares in these companies or to engage in any other business activity or arrangement with them. The inclusion of these companies does not necessarily represent the views of these firms and should not in any way be attributed to them.

Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP which is authorised and regulated by the FCA. The Awards do not constitute investment advice. Funds that are controlled by Broadwalk Asset Management LLP may have positions in some of the companies mentioned in the Awards. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

BROADWALK SERVICES AWARDS 2014[+/-]

This is the seventh year of the Broadwalk Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. As usual, competition was fierce with a strong array of contenders – highlighted by the impressive short lists. The broadly defined business services sectors are one of the less well known success stories of the economy and are amongst the largest private sector employers. These awards are another step towards raising their and the sector's profile.

Charles Cottam - founder of Broadwalk Asset Management.

CategoryWinner
Company of the yearDCC
CEO and executive team of the yearChristoph Mueller and executive team, Aer Lingus
Deal of the yearAmec acquisition of Foster Wheeler
IPO of the yearAA
Small and mid cap company of the yearSafestore
Entrepreneur of the yearGreg Fitzgerald, Galliford Try

ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Super sector head of business services, leisure and transport, UBS
  • Vasco Litchfield, Managing Director, Lazard
  • Jane Sparrow, Director Mid&Small Cap Support Services Research, Barclays
  • Stuart Vincent, Managing Director, Rothschild

AWARDS AND SHORT LISTS


Company of the Year [top]

DCC

 DCC
CEO Tommy Breen and CFO Fergal O'Dwyer

Under CEO Tommy Breen since 2008, DCC has grown its Energy division to become the largest oil and LPG sales, marketing and distribution business in Europe with market leadership positions in seven countries. Its second and third largest divisions, DCC Technology and DCC Healthcare, also hold leadership positions in their respective markets. Acquisition activity has been increased to £148m so far this year and the focus tightened by the disposal of its Food and Beverage business for approximately £60m. The company has a track record of sustained profit growth, cash generation and high return on capital employed; with an unbroken record of dividend growth and cumulative acquisition spend of £1.3bn since its IPO in 1994. In 2013, DCC joined the FTSE 250 index and is now the largest support services company in the FTSE 250 with a market cap of approximately £3bn.

SHORTLISTED

Ashtead

2014 was another very strong year for Ashtead under CEO Geoff Drabble. The company has been well positioned for the long awaited recovery in US non-residential construction. Due to the strong momentum capex for the year ended April 2015 was upgraded to £825m well ahead of £276m depreciation levels. Debt at 1.9x ebitda is very comfortable and return on investment at 21% is impressive for a capital intensive business.

Intrum Justitia

Intrum Justitia is Europe's leading credit management company, specialising in debtor collection. With operations in 20 countries and market leadership across Northern Europe, the group has enjoyed another strong year of growth in 2014. Third quarter results revealed a 15% increase in revenue, and in improvement in margins, driving the shares up some 30% year to date. With opportunities to expand the range of services and locations the group's target of 10% growth should be achievable.

Loomis

New CEO Jarl Dahlfors has continued to achieve the strong trend in revenue, profit and share price development that Loomis began in 2013. At its September Capital Markets day the company announced its new 2017 growth targets which call for at least maintained margins and further strong revenue growth - coming from outsourcing, market share gains and acquisitions. With market leading positions in over 12 countries the company looks well placed to continue to deliver.

Securitas

In a difficult environment sales and profits have continued to grow through a successful sales effort and successfully offering security solutions and technology offerings to customers which has grown from 6% in 2012 to almost 10%. President and Chief Executive Officer Alf Göransson has been in charge since 2007. This has seen acquisition growth in 2011 and a successful restructuring in 2012.


CEO and executive team of the year [top]

Aer Lingus CEO Mueller and executive team

2013CEOandExecutiveTeamoftheYearAwardPresentation
Aer Lingus CEO Christoph Mueller
Christoph Mueller joined in mid 2009 as the Irish economy was suffering severely from the financial crisis. With his executive team he rationalised the flight schedules focusing on the most profitable routes and under took an extensive cost cutting programme without impacting operational efficiency. As the global economy recovered Aer Lingus has been nimble in expanding capacity on short and long haul routes. Recent results show the strong success of these moves as a consistently profitable carrier. In July after five years with the company Christoph Mueller announced he will step down in 2015.

SHORTLISTED

Bunzl

CEO Mike Roney and the executive team

Under Mike Roney's leadership since 2005, Bunzl has continued to execute a strategy of building a global business in defensive sectors – packaging for the food industry, supplies to the health care and janitorial sector. Bunzl has grown at a compound annual rate of over 10% per annum by a combination of organic growth augmented by acquisitions at attractive prices which have been funded by its prodigious cash flow. Return on average operating capital of 58% and return on invested capital of 18% speak for themselves, and despite the acquisition programme the balance sheet remains very comfortable with net debt at 1.9x historic ebitda.

Go-Ahead

CEO David Brown and executive team

Go Ahead is one of the UK's leading bus operators and its rail division carries 35% of all UK rail passenger journeys. Results have been well ahead of initial expectations this year and the company also won the largest rail franchise Thameslink, Southern and Great Northern. CEO David Brown remains on course to hit the operating profit target of £100m by 2015/16. Supported by strong cash flow the balance sheet is robust, and can support potential value adding opportunities within and outside the company's traditional geographic markets.

Homeserve

CEO Richard Harpin and the executive team

In February Homeserve received a £30.6m fine from the FCA principally in relation to sales and controls issues in the UK for the period from 2008 to October 2011. Comprehensive action was taken by the executive team in 2011 to address the issues identified and to restore customer focus. It has not been distracted from continuing to grow its international portfolio - and is making particularly good progress in building its US business. The company looks well on its way to rehabilitation.

Songbird Estates

Sir George Iacobescu and the executive team of Songbird subsidiary Canary Wharf Group

Sir George has been working on Canary Wharf since 1988. He and his executive team have created one of the largest ever development in London of 97 acres of office, retail and increasingly residential space. The company has also started to add other central London sites to its portfolio. The value creation has recently been further enhanced by a bid from two existing shareholders for the shares in holding company Songbird Estates. A recent update of the NAV showed a 19% increase since 30 June.


Deal of the Year [top]

Amec acquisition Foster Wheeler for $3.2bn, announced January

2012DealoftheYearPresentation
AMEC Foster Wheeler
This was a transforming deal for Amec under CEO Samir Briko. It significantly accelerated the growth programme and is double digit earnings enhancing in the first 12 months, and this excludes likely revenue synergies. It gets Amec fully into emerging markets which accounts for 44% of Foster Wheeler's revenue. Around 80% of the business is on cost reimbursable basis which considerably lowers risk, as in Amec's existing business. The consideration was well structured at half cash and half Amec equity, and makes Amec's balance sheet more efficient. Since 2006 Samir Briko has returned £1bn to shareholders and spent £700m on acquisitions. He has shown commendable patience in waiting for the right deal and not overpaying in a previously highly valued oil services market.

SHORTLISTED

Kentz sells to SNC-Lavalin for £1.2bn, announced June

Kentz under CEO Christian Brown rejected a bid from others including Amec, in September 2013 at around 580p a share. Kentz then went on to acquire US based Valerus in January for $435m in cash which was strongly earnings enhancing. In June Kentz accepted a bid valued at 935p a share from Canadian SNC-Lavalin under CEO Robert Card. SNC-Lavalin were attracted by Kentz's services focus in attractive specialisms and geographies within the oil and gas market. The exit PE for the current year was 15.6x and a 33% premium to the prevailing share price.

Synergy Health combination with STERIS valued at £1.1bn, announced October

Synergy, under CEO Dr Richard Steeves, announced a shares and cash combination with US peer STERIS that equated to a 39% premium to the prevailing share price. This now values the Synergy equity at around £1.1bn, with Synergy shareholders owning 30% of the combined STERIS group. The deal is due to accelerate the growth of both companies cross selling STERIS's products and services to Synergy's customer base. The deal will be substantially earnings enhancing for the combined STERIS, due to cost savings, and in part due to the lower tax rate, from the wider geographic footprint.

Micro Focus acquisition of Attachmate Group Inc. for $2.35bn announced in September

This was one of the UK's largest ever M&A transactions in the technology sector. Under Executive Chairman Kevin Loosemore Micro Focus has generated prodigious cashflow from its mainly legacy business. The acquisition of Attachmate, a diversified portfolio of software tools and products, will create one of the UK's largest Software & IT Services companies. There should be significant synergies and the combined group should have very high profit margins and recurring revenues.

Advanced Computer Software acquisition by Vista Equity Partners for £671m in November

The cash bid price represented a 17% premium to the previous closing price and a 75% premium to the placing price of 80p in February 2013 when the company raised £44m. Since founding ACS six years ago CEO Vin Murria has created a company with £203m of revenue and £45m of ebitda. Vin Murria has extensive software acquisition and integration experience. Vista has been extremely active in acquiring software companies and had completed 35 transactions with a total value of $32bn in the previous 12 months.


IPO of the Year [top]

AA - Raised £930m in June, Cenkos was sole coordinator, Deutsche and Greenhill were Financial advisers.

2012DealoftheYearPresentation
Broadwalk's Mark Shepperd with AA Executive Chairman Bob Mackenzie
The AA came to the London market by way of slightly unusual process after a new management team under Bob Mackenzie was appointed. Instead of involving a host of banks and a large roadshow it placed the majority of its shares with a few cornerstone investors.

Although the business is highly financially geared, the stability of its roadside business allied to its remarkably strong brand and strong cash flow were quickly appreciated by the market, with the result that it quickly became one of the best performing IPOs of 2014.

SHORTLISTED

Spire Healthcare

£344m raised in July at 210p. BoA Merrill Lynch and J.P.Morgan Cazenove were Joint Global Co-ordinators, Morgan Stanley and Numis acted as Co-Lead Managers.

In a volatile stock market Cinven were able to sell 41% of the equity in Spire, a leading provider of elective healthcare in the UK operating 39 private hospitals and 13 clinics. CEO Rob Roger has been with the group since 2007 and has implemented a strategy of growing new services at additional sites, while maintaining good patient volumes, which enable a low cost per patient admitted.

FDM Group

£242m raised in June at 287p. Investec acted as Sponsor, financial adviser and sole bookrunner.

The group was founded in 1991 by still current CEO Rod Flavell, floated on AIM in 2005 and was taken private by Inflexion in 2010. The IPO allowed Inflexion to exit almost its entire 62% holding. It employs high calibre graduates as well as ex-military personnel, and provides them with high quality IT training to qualify them as FDM Consultants. These Mounties are deployed to client sites as low risk and flexible resource. At the latest trading statement in October over 1,800 personnel were deployed at 99% utilisation rates.

SSP

Raised £997m in July. Goldman Sachs and Morgan Stanley were joint global coordinators, Bank of America Merrill Lynch and Jefferies joint book runners and Nomura and Shore were co-lead managers.

SSP was bought by Swedish Private Equity group EQT in 2006 and after a difficult period during the crisis, in 2013 appointed Kate Swann, responsible for turning round WH Smith, to drive the company forward. The company is increasingly benefitting from its international scale as is well positioned to benefit from structural growth drivers in its markets. The IPO was a success, being multiple times oversubscribed during a period when many flotations were being pulled, and recent results showed the company to be well on track.

Logista

Raised €518 in in June. Joint global coordinators were Goldman and Credit Suisse, Morgan Stanley, BBVA and Societe Generale were joint leads

Imperial Tobacco strategy is to concentrate on its core activities. This does not include Logista, the Imperial distribution business to capillary networks of points-of-sales, with operations in Spain, France, Italy and Portugal. It capitalised on an improving business and stock market climate in Spain, to float Logista in June. Under CEO Luis Egido the company has proved resilient in adverse macroeconomic circumstances. It has stated its intention to propose distributing at least 90% of its annual net profits in dividends. Imperial retains a majority stake of 70%, and the share has performed relatively well since IPO.


Small and Midcap Company of the Year [top]

Safestore

2013SmallMidcapCompanyoftheYearAwardPresentation
Safestore's CFO Andy Jones and CEO Frederic Vecchioli with Charlie Cottam
 

 

 

 

 

 

 

 

 

Safestore has developed a tight operational focus on internal performance and improving conversion of new enquiries at appropriate rental rates. Recent quarterly revenues were up 8.4% on a same store basis. CEO Vecchioli was appointed in September 2013 having run the company’s 25 store Paris operation Une Piece en Plus, which he co-founded. A £32m placing was completed in January as part of a £75m debt reduction exercise to bring balance sheet loan to value from 50% to under 40% and save £5m of annual interest cost.

SHORTLISTED

Hyder Consulting

In August after a bidding war, Hyder agreed a bid from the Dutch group, ARCADIS worth £288m, representing an impressive 56% premium to the closing price the day the first bid was announced. CEO Ivor Catto joined in late 2008 and guided the group through the recession, and protected the company's balance sheet. Project delays in Australia and the Middle East in early 2014 resulted in a profits warning, but the strength of the competing bids confirm that was only a short term blip.

Marshalls

Marshalls is the UK's leading hard landscaping manufacturer to both the commercial and residential markets. The company, with an inevitably high fixed cost base, had a difficult time in the recession. However while cutting costs it maintained operational flexibility to benefit when demand began to recover. CEO Martyn Coffey joined the company in October 2013 from BDR Thermea. The company is focused on product innovation and service delivery initiatives to deliver continued sales growth and looks well set to return profit levels to pre-recession levels.

Assura

UK REIT Assura is a leading property investor and developer in the primary care sector, with 247 medical centres. CEO Graham Roberts joined from being Finance Director of British Land in 2012. In September the company raised £175m of new equity. £80m was ear marked for further near term acquisitions and a further £55m for reducing the loan to value ratio from 65% to 47%. In November it announced two acquisitions for £74m for a further 15 medical centres.

WYG

Under CEO Paul Hamer since March 2009, consulting firm WYG (previously White Young Green) has been transformed. The business required significant re-capitalisation after an acquisition spree, and Paul Hamer had to undertake substantial business rationalisation and cost cutting. The international business has been successful grown into further geographies and clients and ha becomes a world leader in advising fragile states. The UK has refocused to its core activities, and remains a leader in urban development, climate resilience and infrastructure.


Entrepreneur of the Year [top]

Greg Fitzgerald Executive Chairman, Galliford Try

2013SmallMidcapCompanyoftheYearAwardPresentation
Galliford Try Executive Chairman Greg Fitzgerald with Charlie Cottam
Greg Fitzgerald founded Midas Homes in 1992 which was acquired by, what is now, Galliford Try in 1997, and became managing director of the house building division in 2003, before becoming Group CEO in 2005. In the 2008-9 recession Galliford Try was one of the fastest house builders to reduce inventory as the credit crunch hit. Greg led a £125m rights issue in June 2009 and used the proceeds to buy land in a difficult market, which is now yielding sales at attractive margins. In July 2014 Galliford Try acquired Miller Construction for a very good value price. The business is an excellent fit with the existing contracting business producing a combined order book of £3.1bn. The recent trading statement showed a record land bank of over 14,000 plots and the house building business being able to price for margin rather than absolute sales. In October Greg Fitzgerald announced he will be standing down from the group no later than December 2015.


Disclaimers 2014

Advisory Panel

All the firms represented by an individual on the advisory panel; Barclays, Lazard & Co., Limited, Rothschild and UBS Limited, (an affiliate of UBS AG), may have corporate relationships with companies included in these awards. The inclusion of a company in the awards is not in any way an investment recommendation to buy or sell shares in these companies or to engage in any other business activity or arrangement with them. The inclusion of these companies does not necessarily represent the views of these firms and should not in any way be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited

(the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most, if not all, of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

Broadwalk Asset Management LLP is Authorised and Regulated by the FCA.

BROADWALK SERVICES AWARDS 2013[+/-]

This is the sixth year of the Broadwalk Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. As usual, competition was fierce with a strong array of contenders - highlighted by the impressive short lists. The broadly defined business services sectors are one of the less well known success stories of the economy and are amongst the largest private sector employers. As the Financial Times recently commented, very successful businessmen in Europe are often only celebrities to the fund managers. However they achieve much more widespread acclaim in the US and this trend will hopefully continue to rise in Europe. These awards are another step towards raising their and the sector's profile.

Company of the yearInterserve
CEO and executive team of the yearPaul Pindar and executive team, Capita
Chairman of the yearJohn Connolly, G4S
Deal of the yearInvensys acquisition by Schneider
European IPO of the yearRoyal Mail
Small and mid cap company of the yearKBC Advanced Technologies
Entrepreneur of the yearMark Dixon, Regus

 

ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Super sector head of business services, leisure and transport, UBS *
  • Vasco Litchfield, Managing Director, Lazard *
  • Jane Sparrow, Director Mid&Small Cap Support Services Research, Barclays *
  • Stuart Vincent, Managing Director, Rothschild

*Jarrod Castle (UBS), Vasco Litchfield (Lazard) and Jane Sparrow (Barclays) did not participate in discussions relating to the IPO of the year award 2013.

Broadwalk Asset Management LLP

Broadwalk Asset Management was founded in 2007 by Charlie Cottam, previously an equity analyst with Panmure Gordon and Cazenove (now J.P.Morgan Cazenove). The investment team includes Mark Shepperd (32 years at UBS) and Simon Strong (over 20 years experience particularly in technology). It manages the Broadwalk Select Services Fund, Europe’s first absolute return fund to focus on the broadly defined business services sectors. The fund has risen almost 158% since its inception in June 2008, compared to the FTSE All Share which on a total return basis is up 41%.

Broadwalk Asset Management LLP

charlie.cottam@www.broadwalkam.com

0044 (0)207 491 7384

Broadwalk Asset Management LLP is Authorised and Regulated by the FSA.

Important disclosures can be found at the end of this section.

AWARDS AND SHORT LISTS


Broadwalk Services Company of the Year  [top]

logo-interserve

Interserve

2013CompanyoftheYearAwardPresentation
Interserve CEO Adrian Ringrose and Charlie Cottam

The strategy set by CEO since 2003, Adrian Ringrose to strengthen the core UK businesses while expanding internationally is working extremely well. It has become a very significant player in the UK outsourcing arena with a future workload of £5.4bn. Significant cash has been recycled from the legacy PFI investments in a number of bolt on acquisitions in UK frontline services and the oil and gas services business in the Middle East. Large new contracts such as the BBC and the University of Sussex have also been won recently. Cash conversion has remained strong enabling the group to invest in further growth opportunities.

 

 

 

 

 

SHORTLISTED

BBA

BBA, under CEO Simon Pryce, has outperformed the overall flat to down market by driving organic growth from BBA’s market leading Flight support business Signature. This has been aided by acquisitions and expansion through new legacy product support licences, reaching $141m of committed spend this year so far. The balance sheet remains strong and there is considerable opportunity for further growth in expenditure.

Euromoney

Under Chairman Richard Ensor, Euromoney has continued to focus on organic growth, which has impressively been maintained at consistent levels through the very challenging markets of the financial crisis. Growth has been driven through investing in data, research and editorial, migrating print to online and expanding into emerging markets. The group has an excellent track record of deriving synergies from acquisitions and from widening the customer base. Tight cost control has also helped maintain high operating margins of 30%. This margin level has also been consistent despite the inevitable impact of the recession.

Hays

Hays is emerging from the downturn in good shape. CEO Alistair Cox has appointed new management in Australia which is suffering from the resources downturn. The cost cutting in the UK has been sufficiently strategic that as the market begins to recover Hays is well positioned to grow profitability. The international strategy remains robust with the German business continuing to grow strongly in its still immature staffing market. The company also recently explained the benefits of its very effective IT platform.

IAG

IAG, under CEO Willie Walsh, held firm on supplier negotiations in Spain earlier this year and combined with recovering expectations for the Spanish economy the Iberia merger is looking a lot more promising. The acquisition of the majority stake in low cost airline Vueling is also helpful in expanding into growth markets and areas of reduced capacity. British Airways is also outperforming expectations. The company recently raised its targeted 2015 earnings target and a commitment to produce returns above its Weighted Average Cost of Capital which has not been easy for legacy carriers.


Broadwalk Services CEO and executive team of the year  [top]

capita-logo

2013CEOandExecutiveTeamoftheYearAwardPresentation

Capita CEO Paul Pindar and Charlie Cottam

Paul Pindar joined Capita in 1987, and became Chief Executive in 1999. He transformed the Company into a contract winning powerhouse. He has grown segments such as justice and emergency services and health into substantial new businesses. The Company’s extensive bolt on acquisition strategy has been enormously successful, and led to the creation of further significant business lines such as asset services and customer management. Paul, together with Capita’s executive team, has steered the business through the ongoing challenging economic conditions in the UK and continued to deliver an unbroken track record of year-on-year earnings growth. Over the 10 years to 31 December 2012, Capita delivered shareholder returns of more than 200% compared to the FTSE 100 average of 113%. Paul will be succeeded in February by Andy Parker.

SHORTLISTED

Atkins CEO Prof Dr Uwe Krueger and executive team

Professor Krueger was appointed in mid 2011 from TPG. The recent results have really shown the success of the team’s strategy since 2011. The portfolio has been aligned to the core engineering and consulting skills, with the riskier services businesses being sold. Good growth has been generated from the focus areas of Energy and Asia Pacific, as well as a recovering UK business. Cash generation has been strong which will enable further growth organically and through acquisitions.

Berendsen CEO Peter Ventress and executive team

Berensden has continued to deliver solid returns for its shareholders. Investors have warmed to the steadily improving progress that the company has made both in its top line and in improving it margins, while its cash flow continues to be remarkably strong. CEO Peter Ventress was appointed in January 2010 from the office products distribution industry. He and his team’s strategy of moving to a business line structure, rather than geographic divisions, is showing through in better transfer of best practice and incremental margin improvement.

Howdens CEO Matthew Ingle and executive team

Howdens under CEO Matthew Ingle has continued to grow its depot network despite the very difficult retail environment. Ingle and his team’s impressive strategy has been consistent in focusing on supplying the small builder with high quality locally stocked kitchens and joinery at very competitive prices. It is on course to open a further 30 depots in 2013 bringing the total to 560. The target of 700 depots in the UK continues to look achievable.

Workspace CEO Jamie Hopkins and executive team

Since his appointment as CEO in April 2012, and aided by his able executive team, Hopkins has sharpened Workspace’s focus on maximising value from its well located portfolio of 100 properties in London. Extra effort has been deployed in its redevelopment programme to add value from planning applications which add residential space while improving its existing commercial space. In addition communication has been clearer. There has been greater emphasis on improving the customers experience and increasing the value they derive from being a Workspace customer, including the rollout of Club Workspace.


Broadwalk Services Chairman of the Year  [top]

G4S-logo

2013ChairmanoftheYearAwardPresentation

G4S Chairman John Connolly

John Connolly is chairman of G4S and Amec. He joined G4S shortly after its aborted merger with ISS in 2012. Since then he has had to contend with the problems ensuing from the London Olympics contract, profit short falls, and an investigation into the company's UK Justice contract. This led to the resignation of the group's CEO. In response he has hired well regarded new CEO, Ashley Almanza, a new Finance director and several new non executives. In August the company successfully raised £350m of new equity to shore up the balance sheet. The group is now much better positioned to focus on its higher value added sectors and grow particularly in developing markets.

SHORTLISTED

Michael Harper, Chairman BBA

Harper joined BBA as a non executive in 2005 before becoming interim CEO in 2006. As interim CEO he focused the group on its core Aviation Services activities and oversaw the demerger of non-woven subsidiary Fiberweb. Harper appointed Simon Pryce CEO in 2007 and has overseen a number of acquisitions to bolster Signature's industry leading Fixed Base Operations network for aircraft operators. He is to be succeeded replaced by Sir Nigel Rudd.

Bob Benton, Chairman of Clarkson until August

Benton joined the board of shipbroker Clarkson in 2005 and became Chairman in August 2008 at the height of the financial crisis. The share price fell 60% in four months but despite an inevitable revenue decline, the impact was mitigated by Benton and CEO Andi Case's tight cost control. At the same time, the company continued to grow market share in its core markets and expand into related areas. It's a tribute to Benton's skill in managing a broking business with strong personalities that the shares were up over 100% during his tenure. His replacement as Chairman was Philip Green.

John Dodds, Chairman Severfield-Rowen

Dodds became Chairman in September 2011 and in January the following year assumed the role of Executive Chairman after the announcement of further material cost overruns. In February he succeeded in raising £48m via a rights issue and negotiated revised banking facilities with the company’s lenders. This returned the company to a sound financial footing. The UK business was reorganised with a 10% reduction in capacity to align the business with market conditions. In September he appointed Ian Lawson as CEO, and stepped back to non executive Chairman.


Broadwalk Services Deal of the Year  [top]

invensys-logo

Invensys acquisition by Schneider Electric for £3.4bn in July

2012DealoftheYearPresentation

Invensys CEO Wayne Edmunds and Charlie Cottam (taken in 2012)

After the commendable sale of the Rail division (Broadwalk deal of the year 2012) last year to Siemens Invensys CEO Wayne Edmunds negotiated the sale of the core business to Schneider Electric. The price was a 14% premium to the closing price and a 27% premium to the prior three month average price. The offer presented a value over 500p a share, which is a very impressive achievement when compared to a price of around 220p when Edmunds was appointed CEO in June 2009.

 

 

 

 

 

 

 

 

SHORTLISTED

APR Energy acquisition of GE’s power rental business for $314m in October

APR bought GE’s remaining power rental business encompassing 20 turbines and 5 ongoing contracts with 520MW of generating capacity. This increased APR’s capacity by over 30%. 80% of the purchase price was financed with APR equity, with GE taking a 16.5% stake in the company. This significantly diversified APR’s global contract and revenue base, and was earnings enhancing. It also increased APR’s exposure to energy from natural gas which is the fastest growing technology in the industry which is ideally suited to large urban contracts.

Experian acquisition of Passport Health Communications for $850m in November

This trebles Experian’s health business and makes it the US market leader covering 3,000 hospitals. Passport is a software as a service subscription business with 84% of 2014 revenues already on the books and is based on a very strong technology platform. Despite the rich acquisition multiple, with revenue and cost synergies, the deal will be immediately earnings enhancing. It is forecast to make double digit returns within Experian’s five year target.

Essentra (previously Filtrona) acquisition of Contego Healthcare for £160m in March

The deal further expands Essentra’s product offering in the faster growing pharmaceutical and healthcare markets. The price of 11.5x EBIT looks reasonable value when the opportunities for cost synergies and cross selling revenue benefits are factored in. CEO Colin Day has extensive experience of making and then integrating this type of acquisition. The transaction was funded by a c.£143m placing enabling Essentra to retain its strong balance sheet and make further bolt-on acquisitions going forward.

Kier acquisition of May Gurney in May for £297m

Kier won a bidding war against Costain for May Gurney with a bid where the equity component was 85% was financed by Kier shares. This enabled the balance sheet to remain strong with no recourse to existing Kier shareholders. The deal achieved Kier’s ambition of growing its services offering from 21% of sales to 41%. There should be multiple cross selling opportunities to the 65 local authorities the combined group serves, as well as £20m of cost synergies.


Broadwalk Services European IPO of the Year  [top]

Royal_Mail-Logo

Royal Mail

£2bn raised in October at 330p. Goldman Sachs International and UBS Limited were Joint Global Co-ordinators and Joint Bookrunners, Barclays Bank PLC was Joint Bookrunner and Sponsor, BofA Merrill Lynch was Joint Bookrunner and Investec Bank plc, Nomura International plc and RBC Europe Limited were Co-Lead Managers.

The flotation will enable Royal Mail to become more flexible and responsive in the UK’s postal market, which is arguably the most competitive in the world. Under CEO Moya Greene the company has undergone a significant transformation process and has a clear strategy built around growing the parcels business, managing the decline in letters and being customer focused. The recent interim results showed the business is trading as expected and is well poised for the crucial Christmas trading period. The flotation included 10% of the company being allocated for free to the company’s 150,000 eligible UK based employees.

SHORTLISTED

Fusionex,

Raised £12m in December 2012 at 150p. Panmure Gordon were Nominated Adviser.

FusionEx has been a star performer since its IPO in December last year. Its share price has more than doubled since listing, partly in anticipation of the company’s big data product, Giant. FusionEx should benefit from the anticipated strong growth rate in online analytics and the extent of the share price rise typifies how much growth stocks are in demand.

Bpost,€812m raised in June at €14.5. J.P. Morgan, Nomura and BNP Paribas Fortis were joint global coordinators. Joint international bookrunners: J.P. Morgan, Nomura, Morgan Stanley and UBS. JointBelgian bookrunners BNP Paribas Fortis, KBC and ING.

Bpost is Belgium’s dominant postal operator. CEO Johnny Thijs has a strategy to continue to increase productivity and grow parcel volumes in Belgium and abroad. He has also focussed on major customers who will benefit from e-commerce growth. This will offset the inevitable decline in transactional mail volumes, while a strong cost focus generates industry leading margins. It has stated its intention to pay a minimum of 85% of its annual net profits as a dividend.

Countrywide,

£224m raised in March at 350p. Joint sponsors Goldman Sachs and Jefferies, Joint global co-ordinator Credit Suisse.

Under CEO Grenville Turner Countrywide has transformed from a collective network of estate agencies into the UK’s leading property services group. The IPO allowed Oaktree, Apollo and Alchemy to reduce their holdings in the company and in August the former two sold a further 17% of the company. In September the company announced the acquisition of commercial property consultant Lambert Smith Hampton for £34m, increasing its offering to corporate customers.

Foxtons,

£429m raised in September at 230p. Joint sponsors Credit Suisse and Numis, co-Lead Manager Canaccord

The IPO left the group debt free after a buyout at around the peak of the last residential market cycle. Under CEO Michael Brown since 2007 Foxtons has maintained its reputation for a very strong marketing approach, as well as customer orientated services such as longer open hours. It is well placed to continue its branch expansion programme throughout London, funded by internal cash generation and is not dependent on an increase in the number of London housing transactions. The IPO enabled Foxton’s private equity owners to reduce their stake to just 22%.


Broadwalk Services Small and Midcap Company of the Year  [top]

kbc-logo

KBC Advanced Technologies

2013SmallMidcapCompanyoftheYearAwardPresentation
KBC Finance Director Caroline Brown and Charlie Cottam

KBC Advanced Technologies has transitioned from a consulting led model into a company with a strong software focus. The company’s consulting and technology offering helps the hydrocarbon processing industry maximise profitability. The new senior management team under Ian Godden, who became Executive Chairman in the autumn of 2012, has made good progress over the last year restructuring the operations, growing revenues and profitability, increasing the focus on technology and positioning the business for continued growth.

 

 

 

 

 

 

SHORTLISTED

Matchtech

Matchtech has emerged as the most one of the successful Specialist, or White Collar staffing companies in the UK. Under CEO Adrian Gunn, its strategic office locations and cost culture has seen strong underlying growth in it core discipline - the recruitment of Engineering staff. Profitability has also improved and it is now one of the most efficient staffing firms. The company achieved a major coup in September when it announced that Brian Wilkinson, former main Board Director of Randstad, Vedior and Select Appointments would become Chairman.

Staffline

Staffline has shown that despite operating at the lower end of the skill market, it is possible to run a very successful and profitable business. The business enjoys one of the highest operating margins in the industry, and has a very good record in bolting on small acquisitions. Under CEO Andy Hogarth the company has successfully diversified into the Work Programme where it is top ranked for performance.

Wincanton

Contract logistics operator Wincanton has recovered from an overly indebted position heading into the financial crisis. Net debt has fallen from £160m in March 2011 to £87m at the latest interim results, primarily through internally generated cash flow. CEO Eric Born has done a very good job in sharpening the division’s focus on cost control, cross selling and higher margin technology supported contracts.

Xchanging

Ken Lever became acting CEO in February 2011, having only joined four months earlier as finance director. It was a difficult start as the company had to issue a severe profit warning and the departure of the founder. Lever acted quickly to implement a recovery plan and restore confidence. The business has been considerably simplified with a focus on its strong position in Insurance. The strategy of serving a larger number of customers and offering high value added services was recently enhanced by the acquisition of bolt on MarketMaker4.


Broadwalk Services Entrepreneur of the Year  [top]

regus-logo

Mark Dixon

Mark Dixon founded Regus in Brussels in 1989 when he saw how many businessmen needed to work in hotels or cafés for lack of a more professional environment. He opened the first business centre and started persuading companies to outsource their work place requirements to a specialist operator. A global network of flexible workplaces was established, and in 2000 the company floated on the London Stock Exchange. After a very difficult period of trading during the subsequent recession the group was refinanced, which allowed for two significant US acquisitions, making the company by far the largest US operator. Regus was much better placed to cope with the next recession in 2008 with a more diversified customer base by sector, a wider suite of products and services and a higher proportion of flexible rental deals. As the global economy recovered the aggressive centre rollout continued, responding to the growth in flexible working. As a result the company is currently opening one new location a day, and has a network of some 1,700 business centres in 100 countries. Dixon recently announced plans to accelerate new openings in 2013 and the target of 2,000 centres looks achievable, as more organisations want more flexible working environments for their employees.

2013EntrepreneuroftheYearAwardPresentation

Regus CEO Mark Dixon and Mark Shepperd


Disclaimers 2013 

Advisory Panel

All the firms represented on the advisory panel, Barclays Capital, Lazard, Rothschild and UBS Limited, an affiliate of UBS AG, have corporate relationships with companies in these awards. Their inclusion is not in any way an investment recommendation to buy or sell shares in these companies. The inclusion of these companies do not necessarily represent the views of these firms and should not be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited (the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

Broadwalk Asset Management LLP is Authorised and Regulated by the FSA.

BROADWALK SERVICES AWARDS 2012[+/-]

This is the fifth year of the Broadwalk Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. Similar to the London Olympics, competition was fierce with a strong array of contenders – highlighted by the impressive short lists. The broadly defined business services sectors are one of the less well known success stories of the economy, and these awards are another step towards raising their profile.

Company of the yeareasyJet
CEO and executive team of the yearMiles Roberts, CEO and executive team, DS Smith
Chairman of the yearSir Ian Wood, Wood Group
Deal of the yearInvensys, sale of Rail
European IPO of the yearDKSH
Small and mid cap company of the yearVp
Entrepreneur of the yearChris Cole, Genivar (ex WSP)

 

ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Co Head of Transport Research, UBS
  • Vasco Litchfield, Managing Director, Lazard
  • Jane Sparrow Director Mid&Small Cap Support Services Research, Barclays Capital
  • Stuart Vincent, Managing Director, Rothschild

Broadwalk Asset Management LLP

Broadwalk Asset Management was founded in 2007 by Charlie Cottam, previously an equity analyst with Panmure Gordon and Cazenove (now J.P.Morgan Cazenove). It manages the Broadwalk Select Services Fund, Europe's first absolute return fund to focus on the broadly defined business services sectors. The fund has risen almost 90% since its inception in June 2008, compared to the FTSE All Share which on a total return basis is up 17%.

Broadwalk Asset Management LLP
charlie.cottam@www.broadwalkam.com
0044 (0)207 491 7384

Broadwalk Asset Management LLP is Authorised and Regulated by the FSA.

Important disclosures can be found at the end of this section.

AWARDS AND SHORTLISTS


Broadwalk Services Company of the Year

easyjet.fw

easyJet

2012CompanyoftheYearAwardPresentation

easyJet CEO Carolyn McCall and Charlie Cottam.
While the European macro environment has not been helpful, easyJet has done an outstanding job in winning market share by exploiting its wide European network, low cost advantage and strong financial position. CEO Carolyn McCall has laid out very clear targets to ensure the capital structure remains robust while also efficient. Cost discipline is also very tight which will help mitigate uncontrollable increases in fuel, foreign exchange and airport charges.

 

 

 

 

 

SHORTLISTED

Howdens Joinery

Under highly experienced CEO Matthew Ingle, Howdens has successfully negotiated extremely demanding conditions in the UK kitchens market, with a very tight focus on its operations. This includes price and margin discipline, new kitchen ranges incorporating the demand for more complex functionality, and a continued depot opening plan, bringing the total to 530. The balance sheet has also been much improved with the legacy property liabilities much diminished and a new arrangement negotiated with the pension trustees.

Intertek

CEO Wolfhart Hauser has continued to exploit the structural growth opportunities driven by customers' demands for quality and safety. A number of bolt on acquisitions have widened the range of services offered. The latest report reiterated the company's confidence in growing organic revenue in the high single digit range despite the uncertain economic environment.

Travis Perkins

Travis Perkins, under CEO Geoff Cooper, has insulated itself from fragile trading conditions through continued tight management of costs and efficient gains from self help projects. There has been a focus on cash generation to bring group indebtedness down further with the group on track to be at around £450m for the full year. Travis has continued to consolidate the industry with the acquisition of Toolstation fro £107m, and its further small step overseas into the Dutch market.

Wolseley

CEO Ian Meakins has successfully executed on his strategy since becoming CEO in July 2009. The less strategically well placed businesses have been sold, and the balance sheet significantly strengthened. The businesses now look well set to increase their already leading market shares despite the still potentially difficult market backdrop. Bolt on acquisitions are likely to help this, as well as a commitment to grow the dividend and return any excess cash to shareholders.

 


Broadwalk Services CEO and executive team of the year

ds-smith-plc-logo

Miles Roberts CEO and executive team, DS Smith

2012CEOandExecutiveteamoftheYearAwardPresentationRoberts joined DS Smith as CEO in May 2010. Since then the company has been transformed. In 2010 corrugated packaging company Otor of France was bought for €247m. In 2011 Spicers the wholesaling business, was sold for £200m. In January the company announced the purchase of SCA Packaging for €1.6bn, partly funded by a skilfully handled £466m rights issue. DS Smith became the leading corrugated packaging company in Europe and was strongly earnings enhancing. In October Roberts and Finance Director Steve Dryden announced the integration is ahead of expectations with higher synergies and a faster debt reduction schedule.

DS Smith Finance Director Steve Dryden, CEO Miles Roberts, and Charlie Cottam

 

SHORTLISTED

Greg Fitzgerald, CEO and executive team, Galliford Try

Fitzgerald was one of the fastest housebuilders to reduce inventory as the credit crunch hit the housing sector. He led a £125m rights issue in June 2009 and used the proceeds to buy land in a difficult market, which is now yielding sales at attractive margins. The construction business is operating in extremely difficult conditions but has only bid work which can achieve an acceptable return. Fitzgerald's transformational three year plan can certainly be seen as a success.

Gavin Slark, CEO and executive team, Grafton

Slark was appointed CEO of Grafton in mid 2011, having been CEO of BSS. The Irish construction markets remain extremely difficult, and the UK which now accounts for 76% of sales has suffered after a further recession. Slark has introduced a disciplined focus on "self help" measures and taken some tough decisions on restructuring. This has resulted in a rise in shareholder value as confidence in the company returned.

André Lacroix, CEO and executive team, Inchcape

Lacroix became CEO of Inchcape in 2006 and had to guide the business through very difficult trading in the financial crisis. The distribution element accounts for 65% of the group's profits helped by its focus on the premium brand partners. The retail operation has an intense focus on customer service and has been successfully expanding in emerging markets, in particular Russia and China.

Mark Allan, CEO and executive team, Unite

The UK's leading developer and manager of student accommodation under CEO Mark Allan has coped well with government funding changes during the year, and a series of disposals has strengthened the balance sheet. Allan's strategy to focus on London and strongest university cities has worked well with occupancy for the current academic year still at 96% or fourty-two thousand students (42,000) across the 130 property portfolio.


Broadwalk Services Chairman of the Year

wood-group-logo

Sir Ian Wood, Chairman, Wood Group (retired November)

2012ChairmanoftheYearAwardPresentationSir Ian joined the business in 1964 and as Chief Executive since 1967 pioneered the group's move into oil and gas engineering and support services as reserves were discovered in the North Sea in the 1970s. Sir Ian build a global energy services group with 42,000 employees in 50 countries. This included well integrated acquisitions of JP Kenny, Mustang and PSN, as well as the $2.8bn disposal of the well support business in 2011. CEO Allister Langlands has taken over as Chairman, with Bob Keiller becoming CEO.

Sir Ian Wood

 

 

SHORTLISTED

Sir Patrick Brown, Chairman, Go-Ahead

Sir Patrick became non-executive Chairman in 2002 having been permanent secretary of the Department of Transport. Over the 10 years of his Chairmanship rail and bus operator Go-Ahead has grown considerably, and become a large player in the UK rail market. With a robust balance sheet it successfully negotiated the difficult economic conditions which caused significant problems for other competitors. He will be succeeded as Chairman by Andrew Allner with David Brown continuing as CEO.

Kevin Loosemore, Executive Chairman, Micro Focus

Loosemore took over as Executive Chairman of Micro Focus in April 2011. He has strongly focused the group on cash generation, enabling the return of £82m in October, having returned £84m in December 2011, having previously spent £66m buying back 10% of the outstanding equity base. There has also been a renewed focus on new products for the legacy COBOL division which may bring further opportunities.

Glen Moreno, Chairman, Pearson

Moreno since his appointment in 2005 has overseen the continued transformation of Pearson to become the world's leading learning company, with a stronger focus on digital content and services. In October Moreno appointed John Fallon to succeed Marjorie Scardino as CEO from January 2013. Fallon has planned and led the very strong growth in Pearson's international education business over the last decade.

Leslie Van de Walle, Chairman, SIG

Van de Walle became Chairman in early 2011 and has overseen the strengthening of the group through difficult trading conditions in the UK and Continental Europe. This has involved restructuring to refocus the group on its core activities. In November he announced the appointment of Stuart Mitchell as CEO designate from Wilkinson Hardware Stores. Mitchell will take over in March from current CEO Chris Davies who is retiring after 19 years with the company to focus on non-executive roles.


Broadwalk Services Deal of the Year

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Invensys sale of Rail to Siemens in November for £1.7bn

2012DealoftheYearPresentationWith a single transaction CEO Wayne Edmunds has effectively neutralised the pension fund issue and focused Invensys on its core industrial software and systems businesses. The price of £1.7bn was good representing 15x historic EBIT. After two £625m returns to shareholders and to the pension fund, it allows for £400m of bolt on acquisitions without going into debt. Invensys is now very well positioned to act as a consolidator in the fragmented industrial software market in particular.

Invensys CEo Wayne Edmunds and Charlie Cottam

 

 

 

 

SHORTLISTED

Misys bid from Vista Equity Partners in March for £1.3bn

Despite very difficult end markets and the departure of well respected Misys CEO Mike Lawrie, the Misys board under Chairman Sir James Crosby achieved a cash bid at a 32% premium to the share price before bid talks were announced. Misys had seen its Q3 sales fall 12% and its order intake fall by 5%, though an element of this reduction might have related to the uncertainty over Misys's ownership.

Aegis acquisition by Dentsu in July for £3.1bn

Aegis announced a £3.1bn cash offer at 240p per share from Dentsu of Japan, which represented a 48% premium to the share price. This was a vindication of CEO Jerry Buhlmann strategy having been appointed in May 2010. He sharply focused the business on media and digital communications, selling the market research business Synovate for £525m in late 2011. Organic revenue growth significantly outperformed the sector at 10% in 2011, with operating margins rising 130bp to 17.4%.

CGI acquisition of Logica in May £1.7bn

The cash bid at a 60% premium to Logica's closing price. The deal gave Canadian CGI and its CEO Michael Roach immediate critical mass in the European IT Services market. Logica's exit price earnings ratio was less than 10x. CGI announced the deal was c30% earnings enhancing. While the market sentiment was depressed by Euro area uncertainty, Logica had stated just three weeks earlier it was trading in line with expectations.

Experian acquisition of 29.6% stake in Serasa, Brazil for $1.5bn

Experian under CEO Don Robert initially acquired a 65% stake in Brazil's largest credit bureau, Serasa in 2007. Since then Serasa has EBIT on average by 28% a year. The transaction importantly also included an extension of existing agreements for the banks to both provide data, and extend minimum purchase guarantees. The transaction was earnings enhancing for the year to March 2013. Post the cash funded transaction Experian's leverage of around two times net debt to EBITDA is still comfortable.


Broadwalk Services European IPO of the Year

DKSH-Logo

DKSH

CHF 903m (£600m) raised in March at CHF48. Joint Global Coordinators: UBS, Deutsche Bank. Joint Bookrunners: Berenberg Bank, Credit Suisse.

2012EuropeanIPOoftheYearAwardPresentationZurich based DKSH is the leading market expansion services group focused on Asia with over 24,000 staff and sales of CHF 7.1bn. It distributes products in the consumer goods, healthcare, performance material and technology sectors. Chairman Adrian Keller and CEO Dr.Joerg Wolle have overseen the doubling of net sales and the quadrupling of profits since the merger of two 150 year old Swiss trading houses in 2002. The maiden interim results as a listed company in the summer showed 16% growth in sales, and 24% rise in net profit.

Charlie Cottam and DKSH CEO Dr.Joerg Wolle

 

 

 

SHORTLISTED

NMC Health

£117m raised in March at 210p Deutsche Bank Sole Global Co-ordinator, Sole Sponsor and Sole Bookrunner. Numis and SHUAA Capital Joint Lead Managers.

NMC, the Abu Dhabi based operates hospitals in the UAE, where it is the largest healthcare provider. It used the proceeds to buy Healthcare Suites in Dubai and build a maternity hospital in Abu Dhabi. The company was founded by CEO Dr. B.R.Shetty 37 years ago. It was the first Abu Dhabi company to list on the London market. In November NMC announced the award of a five year contract to operate and manage the new Sheikh Khalifa General Hospital in the UAE.

Clinigen

£55m raised in September at 165p by Numis Securities

Clinigen is a fast growing company providing sourcing and distribution of comparator drugs for clinical trials on a global basis as well as acquiring niche drugs for further commercialisation. CEO Peter George joined in 2010 to consolidating the businesses that form the current group and start the products division following the acquisition of Foscavir. Founder Andrew Leaver continues to own 31% of the shares.

WANdisco

£15m raised at 180p in June by Panmure Gordon.

Sheffield based WANdisco is a leading provider of global collaboration software to the software development industry. Chairman & CEO David Richards founded the company in 2005 with COO Jim Capilgli and Chief Scientist Yeturu Aahlad. In October the company announced Q3 subscription bookings had risen 86% to $2m with a number of new blue chip customers announced. The shares have risen to 450p, a 150% increase on the flotation price. While this was a small flotation it is good to see new UK listed technology companies emerging after a large number of the larger operators in the sector have been bought.


Broadwalk Services Small and Midcap Company of the Year

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Vp

2012SmallMidcapCompanyoftheYearAwardPresentationUnder founder Chairman Jeremy Pilkington and Managing Director Neil Stothard capital discipline has been impressive, with a tender for 7% of the outstanding share capital undertaken in February. The specialist focus on Vp's rental fleet has enabled it to grow despite a continued difficult operating environment. Strong cash flow has continued to ensure a strong balance sheet that supports re-investment in the fleet, share buybacks and further bolt on acquisitions.

Vp CEO Neil Stothard and Charlie Cottam

 

 

 

 

SHORTLISTED

Anite

Anite has seen strong demand for its 4G testing software. CEO Christopher Humphrey Anite has positioned the business to be a major beneficiary of the shift to 4G LTE networks, demonstrated by 351 operators globally that are currently investing in LTE. The company is exposed to an increasingly wide market from new variants, and new product areas such as Voice over LTE.

Kewill

Kewill, the supply chain software supplier under CEO Paul Nichols 2012 saw a competitive bid situation that resulted in a 40% premium to the share price before the first bid announcement. Kewill's high quality Software-as-a-Service logistics and shipping software was valued at almost 12x 2012 EV/NOPAT on exit. Nichols joined Kewill as CEO a decade ago when the shares were trading at 7.5p, compared to the eventual bid price of 110p.

Tribal

CEO Keith Evans has focused Tribal on its market leading technology products and services to the education and training market. In March the mission was outlined with a target to more than double earnings per share in the next three years. Both elements of the business are achieving success in selling internationally with technology particularly successful in Australia.

Lavendon

Don Kenny has been CEO of Lavendon since October 2011, joining from Carillion. His initiatives to improve operational and capital performance have enhanced the results in mixed market conditions. Pricing discipline has been maintained in the largest territory, the UK and the fleet has been successfully expanded in the rapidly growing Middle Eastern markets.


Broadwalk Services Entrepreneur of the Year

wsp-logotype2

Chris Cole, CEO WSP Group (now Executive Chairman, GENIVAR)

Cole and his fellow partners founded WSP in 1969. He floated the company in 1972 with sales of £1.9m and 50 people. Through organic growth and well integrated acquisitions WSP grew to 9,000 employees in over 30 countries generating £717m of annual revenue. The company was particularly strong in high rise building, Rail, Bridges and the environmental sector. In June Canadian GENIVAR paid a 67% premium to WSP's closing price with a £343m cash bid. The 435p per share bid represented around 13x current year earnings forecasts which was a very good price given the depressed stock market conditions.

Cole remains Chairman of equipment rental operator Ashtead which has also performed very strongly. Cole commented "The achievements of WSP are a reflection of my vision and the enormous support and hard work from so many people, without whom I would not have received this recognition."

2012EntrepreneuroftheYearAwardPresentation

Charlie Cottam and Chris Cole, CEO WSP


Disclaimers 2012

Advisory Panel

All the firms represented on the advisory panel, Barclays Capital, Lazard, Rothschild and UBS Limited, an affiliate of UBS AG, have corporate relationships with companies in these awards. Their inclusion is not in any way an investment recommendation to buy or sell shares in these companies. The inclusion of these companies do not necessarily represent the views of these firms and should not be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited (the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

Broadwalk Asset Management LLP is Authorised and Regulated by the FSA.

 

BROADWALK BUSINESS SERVICES AWARDS 2011[+/-]

This is the fourth year of the Broadwalk Business Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. The UK has many world leading companies in business services and is a major employer. It is one of the less well known success stories of the economy, and these awards are another step towards raising its profile.

Company of the yearAshtead
CEO and executive team of the yearPeter Rogers, CEO Babcock
Chairman of the yearSir Peter Ellwood, Rexam
Deal of the yearAutonomy
European IPO of the yearAker Drilling
Small and mid cap company of the yearHogg Robinson
Entrepreneur of the yearDr. Mike Lynch, Autonomy

 

ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Co Head of Transport Research, UBS
  • Vasco Litchfield, Director, Lazard
  • Jane Sparrow Director Mid&Small Cap Support Services Research, Barclays Capital
  • Stuart Vincent, Managing Director, Rothschild

Broadwalk Asset Management LLP

Broadwalk Asset Management LLP was founded in 2007 by Charlie Cottam, previously an equity analyst with Panmure Gordon and Cazenove (now J.P.Morgan Cazenove). It manages the Broadwalk Select Services Fund, Europe’s first absolute return fund to focus on the broadly defined business services sectors. The fund has risen over 50% since its inception in June 2008, compared to the FTSE All Share which on a total return basis is up 5%.

Broadwalk Asset Management LLP

charlie.cottam@www.broadwalkam.com

0044 (0)207 491 7384

Broadwalk Asset Management LLP is Authorised and Regulated by the FSA.

Important disclosures can be found at the end of this section.

AWARDS AND SHORTLIST


Broadwalk Business Services Company of the Year [top]

Ashtead Group Logo

Ashtead

Company of the Year Award Presentation 2011

Ashtead led by CEO Geoff Drabble announced plans to start increasing the US equipment rental fleet in mid 2010, having refinanced the business with very limited covenants until 2015. Despite continuing declines in US construction markets this incremental equipment has been very successfully placed on rent, as the group continues to win market share. Recent interim earnings showed very strong growth driven by a larger fleet and yield improvement.

Charlie Cottam presenting the award to Ashtead’s Finance Director Ian Robson.

 

 

SHORTLISTED

Aggreko 

2011 has been another very strong year for Aggreko, run by CEO Rupert Soames. Revenues have increased by over 20% in the International Power Projects division and momentum looks to continue to be strong. The Local business benefited from the FIFA World Cup but even without that, has achieved very respectable growth in a difficult economic environment. The high cash generation and conservative balance sheet enabled a £148m return of capital in July.

Bunzl

Bunzl, under CEO Michael Roney, has demonstrated an impressive level of stability in a demanding year, as it remains focused on the distribution of essential products. Bolt on acquisitions remain a key part of the growth strategy, and so far this year Bunzl has spent over £145m on 10 purchases, with the pipeline continuing to look promising. Cash generation has also been strong.

Interserve

Under CEO Adrian Ringrose Interserve has successfully reversed margin declines in its Support Services division and won £600m of new business since June alone. The Middle Eastern operations have continued to expand with a focus on the rapidly growing Qatar market. Strong cashflow has enabled the continuation of good dividend payments.

Kentz 

The company has continued to deliver market share gains as it capitalises on its strength in the technology distribution industry. CEO Harriet Green has reinvigorated the business since her appointment in mid 2006, with a strategy to drive profitable growth particularly through the web, and further internationalising the business. Recent results show the strong momentum is continuing.

Broadwalk Business Services CEO & executive team of the year  [top]

Babcock Logo

Peter Rogers CEO Babcock

CEO and Executive Team of the Year Award Presentation 2011

Rogers was appointed CEO in 2003 and has taken the group from EBIT of £23m to £287m last year. Building on the strong platform in Marine Services he and his team have overseen a number of successfully integrated acquisitions including Peterhouse for £97m in 2004 Devonport Management Limited for £350m in 2007 and VT Group for £1.3bn in 2010. Despite a demanding trading environment Babcock has continued to grow organically and has an order book of £12bn with a bid pipeline of a further £10bn.

Charlie Cottam presents Babcock CEO Peter Rogers with the CEO and executive team of the year award.

 

 

SHORTLISTED

Tim Cobbold, CEO De La Rue

Cobbold joined De La Rue in January this year after production problems with its largest customer, and a rejected takeover approach. He has implemented an Improvement plan with a target of making £100m of operating profit in the year to March 2014, up from £40m in the year to March 2011. In November he reported this plan was making excellent progress and cashflow has been particularly strong.

Colin Day, CEO Filtrona

Day was appointed CEO in April, having been CFO of Reckitt Benckiser since 2000. The business was already in good shape. Day however has brought new expertise in sales and marketing which will be a beneficial stabilising factor if the economy deteriorates. The recent acquisition of Richco for $110m, valued at 11.5x EBIT looks a good fit, and provides access to the faster growing consumer electronics market.

Michael Tobin, CEO Telecity

Tobin led the merger of Telecity and Redbus in 2003, and then the acquisition of Globix before successfully completing the company’s IPO in 2007 at 220p, since when the shares have risen c180%. Tobin has capitalised on the very highly connected hub in London’s Docklands while expanding around Europe. Growth has been both organic and well timed acquisitions. Given strong demand Tobin and Telecity looks well set to almost double capacity to 116MW in the next four years.

Ed Williams, CEO Rightmove

Williams joined Rightmove at its inception in 2000 and has built the UK’s largest property portal. The company has a dominant market share of property website impressions. Having floated at 335p in 2006 the shares are now up 250% having paid 45p of dividends. Williams has had to overcome the dramatic fall in residential transaction volumes since the 2008-9 recession, and the unexpected change in Home Information Packs requirements. The company is highly cash generative and has maintained tight capital discipline, buying back 16% of its shares since 2007.

Broadwalk Business Services Chairman of the Year  [top]

Rexam Logo

Sir Peter Ellwood, Chairman Rexam

Chairman of the Year Award Presentation 2011

Sir Peter was appointed Chairman of Rexam in mid 2008 just before the recession, having previously been Chairman of ICI, Chairman of Visa International and Group CEO of Lloyds TSB. To protect the credit rating in mid 2009 his board took the decision to raise £351m in a rights issue, and oversaw a restructuring to save £75m of cost. In 2010 he appointed Graham Chipchase as CEO who had been on the board since 2003. In September he oversaw the sale of the closures business for $360m. He recently announced his decision to retire as Chairman in February 2012 and will be succeeded by Stuart Chambers.

Charlie Cottam presents Rexam Chairman Sir Peter Ellwood with the Chairman of the year award.

 

SHORTLISTED

John Standen, Chairman Lavendon 

In June Standen became Executive Chairman on the CEO’s retirement after a strategic review, and in October Standen appointed Don Kenny as CEO. Kenny looks a strong candidate having previously been Group Managing Director of Carillion’s Business Services which generated £1.2bn of revenue with 15,000 employees. In January the Lavendon board under Standen announced that the 115p per share takeover bid for the company was opportunistic, and significantly undervalued Lavendon.

Antonio Vázquez Romero, Chairman IAG 

Vázquez Romero was appointed Chairman and CEO of Iberia in June 2008 having been on the board since 2007. He has overseen the combined British Airways / Iberia business since its inception in January. While the economic environment has been unhelpful with higher fuel prices and weaker customer demand, the merger has progressed smoothly. He looks to have established a good relationship with CEO Willie Walsh. Further acquisitions look to follow BMI and the company is on track to meet its five year target of €400m of revenue and cost synergy benefits.

Robert Webb QC, Chairman Autonomy

Webb was appointed Chairman of Autonomy in May 2009 having been General Counsel at British Airways since 1998. His detailed expertise in litigation, regulation and compliance was useful to Autonomy’s new business focus. It is often not an easy balance to find as Chairman working with the dominant founder as CEO. The completion of the exceptional sale of the company to Hewlett-Packard demonstrated Webb very successfully found the correct balance.

Broadwalk Business Services Deal of the Year  [top]

Autonomy Logo

Autonomy sale to Hewlett-Packard for £7.1bn

This deal was completed at a stunning 78% premium in a stock market where sentiment was extremely adverse, causing Autonomy’s shares to be down 8% the day before the announcement. Autonomy CEO Dr.Mike Lynch founded the company in 1996 and built it into a highly attractive entity, becoming a world leading software company in the rapidly growing unstructured data market. (see below for photo of Dr.Lynch for Entrepreneur of the year 2011)

SHORTLISTED

Avis Europe acquisition by Avis Budget Group for £1.2bn

In June Avis Budget Group announced the acquisition of Avis Europe for a 60% premium over the closing price. CEO Pascal Bazin was appointed in January 2008 and had to deal with sharp volume and price declines due to the recession. He reduced costs by £150m including £30m of fixed costs while sensibly increasing the presence in China. Avis Europe was 60% owned by D’Ieteren of France.

Forth Ports acquisition by Arcus for £1bn

In March after long running on/off negotiations Forth Ports agreed to an offer by Arcus at a 21% premium to the closing price at the start of the year, and around a 50% premium to when the bid was first mooted in March 2010. Arcus already owned 22% of the company. CEO Charles Hammond was appointed in 1999, having been responsible for doubling the size of the company when he bought Tilbury port in 1995. He grew volumes at both Tilbury and Leith ports, while developing value added real estate and renewable energy opportunities.

Intertek acquisition of Moody for $730m 

Intertek under CEO Wolfhart Hauser had been tracking well regarded Moody and approached its owners when they saw the industrial cycle beginning to turn in their own business. The price at 13.4x 2010 EBIT looks high but Moody’s earnings should recover significantly as the oil capital spending cycle recovers. Including synergies of $10m the 2013 multiple may well be less than 10x EBIT. The acquisition gives Intertek the full suite of services to the oil industry including the capital cycle, and importantly also gives the business global scale.

Wood Group acquisition of PSN for $995m*

The disposal of the Well Support division for $2.8bn to GE, and subsequent acquisition of PSN, is the execution of Wood Group’s CEO Allister Langlands strategy of focusing on its core engineering, operations and maintenance activities. The PSN purchase also maintains a good balance between Wood’s oil and gas development operations and its later cycle production support business. The pre synergy EBITDA multiple of 9.5x looked attractive. The deal internationalises Wood’s production business with the North Sea now accounting for 40% of its revenues, compared to 54% in 2010.*This transaction was announced on 14 December 2010, the day before the 2010 Broadwalk Business Services Awards were released.

Broadwalk Business Services European IPO of the Year[top]

Aker Drilling Logo

Aker Drilling

Aker Drilling, raised NOK3.6bn ($635m) at NOK19. Arctic Securities, DnB NOR Markets, Pareto Securities and RS Platou Market acted as advisers.

Aker Drilling is a Norwegian drilling rig operator. It was spun off from Aker Solutions in February and operates two harsh-environment, ultra-deepwater semi-submersible rigs and is expected to take delivery in 2013 of two drillships. In August the world’s largest drilling contractor, Transocean agreed to buy the company for NOK 26.5 ($1.4bn), a 39% premium to its flotation price six months earlier. Aker Solutions had continued to own 41% of the company after the spin off.

SHORTLISTED

APR Energy,

relisting after the APR acquisition with a market capitalisation of c£860m. Numis acted for the company

Hugh Osmond’s Horizon Acquisition company bought 60% of APR in June and relisted the company on the London Stock Exchange in September. Under CEO John Campion APR has grown its revenues from $37m in 2007 to $126m in 2010, generating very high returns on capital. The company is very well placed to take advantage of the global structural imbalance between supply and demand for electricity which is forecast to grow at 50MW a year to 500MW by 2015. Since relisting the company has signed a global framework agreement to partner with Caterpillar in globally pursuing temporary power solutions.

Circle Healthcare,

£45m raised at 152p. Numis acted as bookrunner with Investec as lead manager.

Circle was co founded by CEO Ali Parsa and CMO Massoud Fouladi to take part in transforming the value offering for patients and the taxpayer in the UK healthcare arena. In November Circle signed the contract to run Hitchingbrooke Healthcare Trust for £1bn over 10 years. When the contract commences in February 2012 Circle will be the first ever non-state provider to deliver a full range of NHS district general hospital services.

HMS Hydraulic Machines & Systems Group,

raised $360m at $8.25 in GDRs. Joint Global Coordinators and Joint Bookrunners J.P.Morgan, Morgan Stanley and Renaissance Capital

HMS is the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS. In the first half of 2011 the company reported hitting its goals set for the year, and with two acquisitions, has strengthened its position in its most profitable market segments including its oil and gas project and design segment.

Broadwalk Business Services Small and Midcap Company of the Year  [top]

Hogg Robinson Logo

Hogg Robinson

Small and Midcap Company of the Year Award Presentation 2011

Under CEO David Radcliffe faced very demanding trading conditions in the recession. However the focus on a differentiated technology led offering combined with impressive service levels has delivered high client retention rates and good new client wins from the 50% of the market that currently does not use an agent to manage their corporate travel spend. Recent results confirmed HRG is continuing to make good progress and strong cash flow has reduced the debt burden.

Charlie Cottam presents Hogg Robinson CEO David Radcliffe with the Small and Midcap Company of the year award.

 

 

SHORTLISTED

Impellam Group

The group formed in 2008 by the merger of The Corporate Services Group and the Carlisle Group is a recruitment firm operating in a number of disciplines in the UK and US, and also provides BPO services. Executive Chairman Cheryl Jones has implemented efficiency and revenue quality initiatives which have significantly improved profitability, while considerably reducing net debt. The company is 58% owned by a trust related to Lord Ashcroft.

iomart

CEO and co-founder Angus MacSween has built a business due to generate sales of over £30m and is growing rapidly. Most of the growth has come from hosting revenue as the company increasingly moves its customers into the “cloud.” This provides an excellent recurring revenue stream with very high retention rates using the iomart’s five state of the art datacentres. Recent results reported that demand continues to be strong as more and more organisations take advantage of the benefits of outsourcing their IT infrastructure requirements.

Monitise 

Monitise looks very well placed to become a world leader in the Mobile Money arena. CEO and co-founder Alastair Lukies has wisely concentrated on establishing strong relationships with the banks in building the business, including one bank which took three and a half years and 279 meetings to convince. 10m mobile banking transactions are processed each month from the 4.5m registered customers. Visa Europe recently increased its stake to almost 9% in a £25m capital raising, and bought out its US joint venture partner.

Paypoint

CEO Dominic Taylor has overseen considerable growth at the company since his appointment in 1998. The UK retail network won the highly significant tender to be the Department of Work and Pensions replacement for giro-cheques in March. 292m transactions were processed in the six months to September, an increase of 9%. The Romanian operation is positioned to move into profitability and other developing businesses are also strong.

Broadwalk Business Services Entrepreneur of the Year  [top]

Autonomy Logo

Dr.Mike Lynch, Founder of Autonomy

2011EntrepreneuroftheYearPresentationDr.Mike Lynch founded the company in 1996 to focus on overcoming the problems presented by unstructured data. He oversaw the acquisition and successful integrations of Verity, Zantaz, Interwoven and Iron Mountain Digital to build on Autonomy’s market leading search algorithms. Lynch has successfully proved his vision for Autonomy against some inevitable critics. His resilience was demonstrated by the collapse of the “tech bubble” in 2001when the shares fell 98% from the peak, and yet he continued to impressively build the company. At only 45 he has a lot more to offer, including at his new position at Hewlett-Packard where he aims to further his vision to make computers fit to the way humans communicate.

Charlie Cottam presenting the Entrepreneur of the year award to Dr.Mike Lynch

Disclaimers 2011  [top]

Advisory Panel

All the firms represented on the advisory panel, Barclays Capital, Lazard, Rothschild and UBS Limited, an affiliate of UBS AG, have corporate relationships with companies in these awards. Their inclusion is not in any way an investment recommendation to buy or sell shares in these companies. The inclusion of these companies do not necessarily represent the views of these firms and should not be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited (the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

BROADWALK BUSINESS SERVICES AWARDS 2010[+/-]

This is the third year of the Broadwalk Business Services Awards to recognise outstanding achievements by quoted companies and their management teams in the broadly defined business services sectors. The UK has many world leading companies in business services and is a major employer. It is one of the less well known success stories of the economy, and these awards are another step towards raising its profile.

Company of the yearIntertek
CEO of the yearWillie Walsh, British Airways
Chairman of the yearSir Moir Lockhead, First Group
Deal of the yearMisys sale of Allscripts
European IPO of the yearAmadeus
Small and mid cap company of the yearCape
Entrepreneur of the yearRichard Harpin, Homeserve

 

ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Co Head of Transport Research, UBS
  • Vasco Litchfield, Director, Lazard
  • Jane Sparrow, Support Services and Electronics analyst, RBS
  • Stuart Vincent, Managing Director, Rothschild

Important disclosures can be found at the end of this section.

AWARDS AND SHORTLIST

Broadwalk Business Services Company of the Year  [top]

Intertek Logo

Intertek

Company of the Year Award Presentation 2010

CEO Wolfhart Hauser has sharply focused Intertek on the trade testing segment which has led to a strong recovery from the global downturn with recent results showing organic growth of 6.5%. Environmental regulations, renewable energy industries and consumer’s concerns over health and safety all look set to continue strong growth. The company also has a very good record of integrating bolt on acquisitions to further enhance growth.

Charlie Cottam presents Intertek CEO Wolfhart Hauser with the Company of the Year award.

 

 

 

SHORTLISTED

Aveva 

Under CEO Richard Longdon has further established itself as the world leader in design software to the Oil and Gas, Power and Marine markets. The extreme focus of the business has led to the development of excellent products, which combined with longstanding customer relationships, has contributed to building a world class business. Strong recurring revenues and growth from developing economies has mitigated the slower recovery of advanced economies.

Compass

The business has been transformed under Richard Cousins (Broadwalk Business Services CEO of the year 2008). Recently reported organic growth was 3.2% in a hostile economic climate, and margins were increased a further 40 basis points to 6.9%. This has led to impressive cash generation with net debt at only £620m, the group was able to raise the dividend by 33%, and is likely to make further acquisitions in both food and support services.

Electrocomponents

With 70% of sales now coming from outside the UK, CEO Ian Mason has focused on international markets, developed the maintenance offers, and exploited eCommerce while maintaining profitability in its UK stronghold. eCommerce sales now represent 48% of group sales, and the company states it is on course to hit its target of 70%. Cashflow has been consistently high at Electrocomponents and the dividend record, although reduced, has been impressive over time.

Premier Farnell 

The company has continued to deliver market share gains as it capitalises on its strength in the technology distribution industry. CEO Harriet Green has reinvigorated the business since her appointment in mid 2006, with a strategy to drive profitable growth particularly through the web, and further internationalising the business. Recent results show the strong momentum is continuing.

Broadwalk Business Services CEO of the Year  [top]

British Airways Logo

Willie Walsh, British Airways

This has been an excellent year for Walsh despite adverse conditions. During the unprecedented volcanic ash cloud in April, Walsh successfully urged the UK government to lift the air space ban, and showed exceptional leadership by example when he personally piloted an aircraft through the closed area. Walsh has successfully negotiated a transformational merger with Iberia, and made good progress with an Atlantic joint venture with American Airlines. He also took decisive action on both the pension fund and negotiations with the unions.

SHORTLISTED

Keith Clarke, Atkins

Clarke was appointed CEO in 2004 during a difficult time for Atkins. He considerably sharpened the group's focus on the company's three core divisions, and significantly grew the engineering and design skills. Atkins saw the UK government spending cuts coming, and Clarke went on record in June to say they would not be a reason for further reductions in forecasts. In August he completed Atkins's largest deal, buying employee owned PBSJ of the US for £178m, which balanced Atkins's geographic exposure at an attractive price.

David Martin, Arriva (Bought by Deutsche Bahn for £1.6bn in August)

Arriva’s strategy, under Martin, of building out a Pan-European bus and rail network was very well rewarded by the bid from Deutsche Bahn, completed in August at a 56% premium to its three month average share price. Martin joined the group on its acquisition of British Bus in 1996, and joined the Board in 1998 with specific responsibility for developing the international operations, becoming Group CEO in 2006.

Ian Meakins, Wolseley

After his appointment in July 2009, Meakins comprehensively reviewed the strategy, and made senior board changes. The focus has been firmly placed on growing the strongest franchises organically with a systematic approach to measuring service levels, and a much tighter focus on resource allocation. The 19 problem businesses have been addressed. Full year results released in September show the strategy is working despite challenging end markets.

Christoph Mueller, Aer Lingus

Mueller was appointed CEO in September 2009 and lost little time making his mark in a challenging situation with the airline strongly cash flow negative. Uneconomic routes were cut and yields improved to staunch the cash flow losses. Cost saving measures were then executed which should deliver over €50m of benefit this year. While the Irish economic backdrop is still not helpful, Mueller is now in a position to concentrate on the airline’s market position.

Broadwalk Business Services Chairman of the Year  [top]

First Logo

Sir Moir Lockhead, First Group, CEO & Deputy Chairman (1995 to 2010)

Sir Moir led the employee buy-out of GRT Bus Group Plc in 1985 and became CEO and Deputy Chairman on the formation of FirstBus in 1995. He oversaw significant consolidation in the UK bus market and took the group into the rail market in 1998. In 2007 he completed the transformational Laidlaw acquisition for $3.7bn, entering the North America market. When he retired in September the group had become one of the world's leading transport operators with revenues of over £6bn, employing 130,000 staff, and transporting 2.5bn passengers a year in the UK and North America. He handed over to very well regarded US and UK experienced CEO Tim O’Toole.

SHORTLISTED

Nicholas Brookes, De La Rue 

To have a major break down in controls in the main business is not a situation any Chairman wants to preside over. Brookes acted decisively to take control of the situation. The CEO resigned four weeks later, new operational management were appointed, processes were upgraded and new certification for paper supplies was introduced. Customers have been kept fully informed. The company continues to face demand uncertainty and has had a bid approach. Brookes has just appointed well respected CEO Tim Cobbold, previously of Chloride. Overall this was an example of good crisis management.

Bob Lawson, Hays (2001 to November 2010) 

Lawson oversaw the complex restructuring of the group from a logistics/mail/recruitment conglomerate after a series of profit warnings. The decision to focus on recruitment has worked well, with the resilience of its contractors and temporary employee model enabling it to be the only major staffing company to maintain its dividend throughout the recession. He also ensured the smooth transition from Dennis Waxman after 38 years as CEO of Hays Recruitment, to Alistair Cox in 2007. He remains Chairman of Barratt Developments.

Jamie Pike, Lupus and RPC

Pike was appointed Chairman of RPC in mid 2008 and conducted a strategic review. Significant operational and commercial improvements were identified with a target of improving ROCE by at least 4 percentage points. This worked well and allowed the group to now focus on organic growth despite a still weak trading environment. The board structure was also simplified. Pike was appointed Chairman of Lupus in November 2009 and first had to oversee a hostile EGM. He was then able to secure the services of the well regarded Louis Eperjesi from Kingspan, as CEO in February.

Sir Michael Rake, Easyjet

Sir Michael joined the company as Deputy Chairman in June 2009 and became Chairman in December 2009. He oversaw the appointment of a new Finance Director, and then in March appointed Carolyn McCall from Guardian Media Group as CEO, succeeding Andy Harrison. The volcanic ash disruption followed swiftly after in April. Finally, in October, Sir Michael oversaw the settlement of the long running dispute between founder Sir Stelios Haji-Ioannou and Easyjet. This resulted in much greater clarity over the brand licence agreement and the founder’s rights in return for an annual royalty payment.

Broadwalk Business Services Deal of the Year  [top]

Misys Logo

Misys sale of Allscripts realising a value of c$1.5bn

Misys under CEO Mike Lawrie bought its majority stake in clinical software provider Allscripts in 2008 for $760m. The company doubled its money when it sold the vast majority of the stake in August for c$1.5bn, showing a profit of c$760m. This transaction enabled a £670m cash return to shareholders and the €435m acquisition of Sophis, another capital markets software vendor with very good synergy opportunities with Misys’s remaining business.

SHORTLISTED

British Airways merger with Iberia

This was a transformational deal for British Airways, giving it 408 aircraft carrying 57m passengers a year. Operationally it increases the destination points to 250 and frees up some BA capacity. Synergies are forecast to reach €400m by year five of the merger. It also strengthens BA’s balance sheet which is important for the likely further consolidation to come.

Dimension Data acquisition by NTT for £2.1bn

Under Executive Chairman Jeremy Ord, Dimension Data has built up the global leader in the provision and management of IT infrastructure solutions, and as a systems integrator which when combined with NTT’s global assets will provide an end to end, global one-stop-shop.

Travis Perkins purchase of BSS for £642m 

The acquisition creates the largest plumbing and heating trade and retail distribution business in the UK, with around a 20% market share. The timing of the acquisition at the beginning of June was good. With uncertainty on the UK economy and specifically the housing market meaning a really full price was not required. The £25m synergy target looks understandably cautious given the macro environment. The price was 11.7x BSS’s trailing EBIT, or 8.0x EBIT including synergies. 40% of the purchase price was in Travis Perkins equity which ensures it has flexibility for further consolidating deals going forward.

VT purchase by Babcock for £1.3bn

Having first started discussions in 2004, this deal was finally consummated in March 2010. The price at over 11x current year EBIT before synergies was fair given the uncertainties over defence spending. Cost synergies were initially estimated at £50m, with the combined business becoming the leading outsourcing supplier to the UK Ministry of Defence. The deal was around 10% earnings enhancing to Babcock, and due to financing by way of a 50:50 split between new debt and Babcock equity, its balance sheet remains in reasonable shape.

Broadwalk Business Services European IPO of the Year  [top]

Amadeus Logo

Amadeus

€1.7bn raised at €11 per share in April. Joint Global Co-ordinators Goldman Sachs, J.P. Morgan and Morgan Stanley. Rothschild acted as financial advisor to Amadeus in connection with the offering.

The IPO was the largest in Europe since 2007 having been oversubscribed by three times. Madrid based Amadeus is the global market leader in distributing air bookings with a 37% market share. In addition its IT Solutions business is the leading provider to airlines of Passenger Service Solutions including reservations, inventory management and departure control. Despite the global downturn, under CEO David Jones the business has grown annual revenues by 35% from 2004 to 2009. A further 10% representing €617m of the company was placed at €13.50 with investors in October ahead of the pre-agreed lock in, which was likely to reflect strong institutional demand.

SHORTLISTED

Brenntag

€748m raised at €50. Global Co-ordinators Deutsche Bank and Goldman Sachs, Joint bookrunners Bank of America Merrill Lynch and J.P. Morgan.

Brenntag is the world's largest chemical distributor benefitting from being a full line distributor with over 10,000 products offering a one stop shop solution, which creates significant efficiencies for its 150,000 customers. CEO Stephen Clark has been with the company for 30 years and has overseen a number of substantial acquisitions to establish the global leadership position. The company joined the market in March, as the second largest German IPO since 2007. The offer was "multiple times" oversubscribed, despite volatile conditions. In June it acquired EAC Industrial establishing a fully-fledged Asia Pacific platform. In October a further €668m shares were sold by BC Partners increasing the free float to 50%.

CPP Group 

£150m raised at 235p, Joint Global Co-ordinators J.P. Morgan Cazenove and UBS.

CPP floated in March as the fast growing international life assistance business with 10m policies in 14 countries. Founder Hamish Ogston retained a 62% stake in the company. As well as raising the profile of the group, the IPO will assist in retaining and incentivising employees. Under CEO Eric Woolley since 2003, it will provide the additional flexibility to finance growth through acquisitions. A recent trading update showed the company was on track with 11% underlying sales growth.

Flybe

£60m raised at 295p, Sole Sponsor, Global Co-ordinator and Bookrunner BofA Merrill Lynch, Joint Lead Manager Investec, Co-Lead Manager Execution Noble.

Flybe floated in December with half the net proceeds being used to fund its aircraft fleet expansion programme, and half to provide strategic growth opportunities as they arise. Jim French became CEO in 2002 and developed the plan which transformed Flybe into Europe’s largest regional airline, including the 2007 acquisition of the former regional airline business of British Airways.

Broadwalk Business Services Small and Midcap Company of the Year  [top]

Cape Logo

Cape

http://www.broadwalkam.com/wordpress/wp-content/uploads/2014/02/Small and Midcap Company of the Year Award Presentation 2010

CEO Martin May first task on his appointment in 2002 was to bottom out legacy liabilities, before dramatically growing the operations. The strategy has been to focus on non mechanical industrial services to the energy sector, with a powerful bundled services offering. Underlying profits have increased nearly fourfold as the company has expanded internationally, with the Far East operation growing particularly rapidly. The group looks well set on the route to its target to double EPS in the next 5 years.

Charlie Cottam presents Cape CEO Martin May with the Small and Midcap Company of the year award.

 

 

SHORTLISTED

Acal

Nick Jefferies was appointed CEO in January 2009 and in June that year announced the new specialisation strategy to differentiate the company's product offering and raise margins. Operating costs have been reduced by a further 12% this year. The BFi Optilas bolt on acquisition has integrated well. It increased the electronics exposure, and also bolstered the presence in Continental Europe where the group has considerable historic tax losses.

Hyder Consulting

CEO Ivor Catto who was appointed in 2008 has done an excellent job improving the consistency of the performance, and growing the international side of the business which now represents 85% of profits. The company has been made more efficient with a 7% headcount reduction in the first half which has helped considerably in growing the EBIT margin to over 8%.

Robert Walters 

Under CEO Robert Walters the company has developed an extremely strong Asia Pacific business which has maintained strong momentum, and been very helpful given the economic uncertainty in the UK and Europe. The group has maintained a net cash position throughout the downturn which has provided a significant stability advantage compared to some of its peers.

Scott Wilson (bought by URS for £223m in June)

The day before the bid was announced Scott Wilson’s shares were trading at 87p. The winning bid by URS, after a bidding war, was 290p, a 233% premium and reportedly the second largest premium paid for a UK company in the last decade. The company floated in 2006 and went on to make 10 engineering consultancy acquisitions under CEO Hugh Blackwood, building on a strong UK presence with international offices in four regions.

Broadwalk Business Services Entrepreneur of the Year  [top]

Homeserve Logo

Richard Harpin, CEO of Homeserve

Harpin established Homeserve in 1993 as a joint venture with South Staffordshire Water. He has built up a very strong team that has in many ways created the home emergency insurance industry, particularly for plumbing. The business has grown to providing over 10m policies to 4.6m customers in five countries, generating £100m of profit before tax. This year saw a doubling of the US footprint to 20m potential customers in what is an exciting market with a high level of insurance consciousness. The exit from Emergency Services was completed without disrupting good growth in the core business.

Richard Harpin, CEO of Homeserve

Disclaimers 2010  [top]

Advisory Panel

All the firms represented on the advisory panel, Lazard, Rothschild, Royal Bank of Scotland Group plc and UBS Limited, an affiliate of UBS AG, have corporate relationships with companies in these awards lists. Their inclusion is not in any way an investment recommendation to buy or sell shares in these companies. The inclusion of these companies do not necessarily represent the views of these firms and should in no circumstances be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited (the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

BROADWALK BUSINESS SERVICES AWARDS 2009[+/-]

This is the second year of the Broadwalk Business Services awards to recognise outstanding achievements by quoted companies in the business services sectors. The UK often leads the world in business services and is a major employer. It is one of the less well known success stories of the economy, and these awards are another step towards raising its profile. Competition for awards this year was extremely fierce with many very strong performances, despite the demanding economic environment.

Company of the yearAggreko
CEO of the yearNick Buckles, G4S
Chairman of the yearJohn Peace, Experian
Deal of the yearBalfour Beatty - Parsons Brinkerhoff
Small company of the yearHargreaves Services

 

ADVISORY PANEL

The awards have had the significant benefit of views from:

  • Jarrod Castle, Co Head of Transport Research, UBS
  • Vasco Litchfield, Director, Lazard
  • Jane Sparrow, Support Services and Electronics analyst, RBS
  • Stuart Vincent, Managing Director, Rothschild

Important disclosures can be found at the end of this section.

AWARDS AND SHORTLIST

Broadwalk Business Services Company of the Year  [top]

Aggreko

CompanyoftheYearAwardPresentationAggreko’s International Power Projects division has continued to grow very strongly combined with rising margins. The company under CEO Rupert Soames has superbly executed the strategy of aggressively exploiting the opportunities for temporary power in emerging markets, while containing the downturn in the more cyclical Local business. Despite being a capital intensive business, the balance sheet has been kept very strong, aided by excellent cash generation.

 

Charlie Cottam presents Aggreko’s Finance Director Angus Cockburn with the Company of the Year award.

 

SHORTLISTED

Amec 

Amec under CEO Samir Brikho has continued to improve under the Operational Excellence programme and recently announced a target to increase earnings per share by 130% by 2015, representing compound annual growth of 12.6%. The £700m of cash is likely to be deployed in what should be a well timed acquisition.

Babcock

The company under CEO Peter Rogers, has been transformed into a Support Services powerhouse with a very strong share in the UK defence outsourcing market, and marine in particular. The company has also quickly become a force in the nuclear services market.

Davis Service Group

Trading has been resilient with strong cash flow generation from Europe’s leading textile maintenance company. The company has used its network density to great effect to maintain margins and grow most areas of the business in demanding circumstances.

Michael Page

Permanent recruitment has unsurprisingly seen the most dramatic revenue reductions of any sub sector. Michael Page’s headcount has been reduced on a meritocratic basis from over 5,000 to 3,500, but the group has remained profitable in each quarter of 2009. CEO Steve Ingham’s strategy of independently focusing on organic international expansion has positioned the company extremely well for when the global economy recovers.

Broadwalk Business Services CEO of the Year  [top]

Nick Buckles, G4S

Buckles was a prime mover as CEO in the Securicor merger with Group 4 in 2004, and has been the combined company’s CEO since 2005. He has firmly established G4S as the global market leader in security. The 2007 £355m acquisition of GSL was well timed to increase the group’s exposure to the public sector. In addition the strategy of moving up the value chain to a fully outsourced protection solution has produced organic growth, and improved margins, despite the challenging market conditions.

SHORTLISTED

Alan Brown, Rentokil Initial

Since his appointment in April 2008 Brown has sharply focused attention on service and cost levels. Two previous management teams have not succeeded in halting profit decline, and Brown looks to have made an excellent start, with no help from the economy.

Geoff Cooper, Travis Perkins

Cooper joined Travis in February 2005, three months after the £950m Wickes acquisition had been announced. Cooper has tightly focused the company on profitable cash generation and has withstood the significant decline in construction and DIY spending, better than certain other competitors. The successful £300m rights issue completed in June was therefore undertaken from a position of relative strength.

Mark Dixon, Regus

Dixon has built Regus into the world’s dominant serviced office provider with offices in 450 countries. Regus was early to offer “recession busting” services and its focus on maximising cash flow has worked extremely well despite the economic downturn.

Wolfhart Hauser, Intertek

Hauser has sharply focused Intertek on trade testing which has resulted in a resilient performance this year despite the challenge of reduced global trade. The potential acquisition of Det Norske Veritas’s Business Assurance Division also looks like an excellent new growth opportunity.

Broadwalk Business Services Chairman of the year  [top]

John Peace, Experian

Peace co-founded the predecessor to Experian, CCN Systems in 1980 in Nottingham as part of GUS. He has been a key driver in building the company from a few employees into the global market leader with $4bn of sales and 12,000 employees. In July he announced he was standing down following his appointment as Chairman of Standard Chartered.

SHORTLISTED

Kevin Beeston, Serco

Beeston joined Serco in 1985 and has played a key part in its impressive development to a FTSE 100 company including positions as Finance Director, Chief Executive and Executive Chairman, and Non-Executive Chairman since mid 2007.

John Devaney, National Express

Devaney joined the board in April at a very difficult time for company, as it was negotiating with the government on the loss making East Coast franchise. He was then faced with an ultimately unsuccessful bid from executive management, a merger approach from Stagecoach and finally a £360m rights issue.

Philip Rogerson, Aggreko, Bunzl, Carillion

Rogerson remains one of the most widely experienced Chairman in the sector. In October he was appointed chairman of Bunzl from March 2010, and is therefore relinquishing his chairmanship of Northgate and board position at Davis Service Group.

Jeremy Ord, Dimension Data

Ord has been with the group since 1983, and its Chairman since 1987. With CEO Brett Dawson the continued focus on the services has worked extremely well. Despite a very difficult trading environment services revenues rose 13% in the last fiscal year, with managed services including the Uptime brand increasing by 21%.

Broadwalk Business Services Deal of the Year  [top]

Balfour Beatty: purchase of Parsons Brinkerhoff for £380m

The acquisition was consistent with Balfour’s strategy set out in 2006 to grow its professional services offering. This deal creates a similar capability set in the US, to the very successful UK model. The company conducted six months intensive due diligence and it looks to be an excellent cultural fit. The price of 5.8x EBIT pre stock option charges represents excellent value, and was very sensibly funded by a rights issue, to maintain Balfour’s strong balance sheet.

SHORTLISTED

BPP: sale for £420m

The deal was announced in April, only a month after the stock market low, at a 70% premium to the closing share price. For a business with late cycle characteristics this represented an excellent exit price.

MicroFocus: Borland and Compuware Testing for £125m

The acquisitions were announced simultaneously in May, six weeks after the stock market bottomed. They were integrated rapidly with a view to achieving substantially higher margins, as a new leading player in the Testing market. The deals look to be working very well, and were a significant contributor to the earnings upgrades in November and December.

Mitie: purchase of Dalkia Technical FM for £130m

The deal provides good synergies from combining two technical FM businesses, and provides an entry into the fast growing energy consulting market. It is a business MITIE have coveted for some time and where they knew the management well. Earnings in the first full year were enhanced by c9%, and a 6% equity placing led to the balance sheet continuing to have very low leverage.

VT Group: sale of shipbuilding for £303m

VT agreed this deal in mid 2007 but exercised the put option at the first available opportunity. This was an excellent price as the carrier programme looks under increased threat, and enables VT to become a pure Support Services operator.

Broadwalk Business Services Small Company of the Year  [top]

Hargreaves Services

Since its flotation in November 2005, under CEO Gordon Banham, the company has had a compound annual growth rate of an astonishing 52%. This has come through excellent execution and a strong focus on becoming a fully integrated supplier of services to the bulk minerals industry.

SHORTLISTED

Educational Development

CEO Nigel Snook has done an excellent job turning the company into a focused leader in accredited qualifications. While acquisitions and higher government spending have helped growth, the majority has come from growing market share through providing a wider range of services combined with very high level service levels.

office2office

CEO Simon Moate joined in July 2007 just after the company announced it had not retained its largest contract, to supply the MoD. Since then the company has cut costs, won significant new contracts and moved into potentially attractive new service areas. It is well positioned to gain market share as the public sector reduces its number of suppliers after the election.

Alterian

The company consolidated its already strong position in the fast growing web content management market in the year. It successfully cross sold to customer’s of last year’s Mediasurface acquisition, and enhanced its position in the Social media monitoring software space with the purchase of Techrigy. CEO David Eldridge who has been with the company since 1997 looks to have positioned the company very well for further growth.

Smiths News

Under CEO Mark Cashmore the company has had a transformational year with contract wins worth £460m a year as Dawson exited the newspaper and magazine wholesale market. It continues to be the clear market leader and also took the first step to diversify the group with the £12m acquisition of Bertrams.

 

Disclaimers 2009  [top]

Advisory Panel

All the firms represented on the advisory panel, Lazard, Rothschild, Royal Bank of Scotland Group plc and UBS Limited, an affiliate of UBS AG, have corporate relationships with companies in these awards lists. Their inclusion is not in any way an investment recommendation to buy or sell shares in these companies. The inclusion of these companies do not necessarily represent the views of these firms and should in no circumstances be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited (the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.

BROADWALK BUSINESS SERVICES AWARDS 2008[+/-]

This is the first year of the Broadwalk annual awards and shortlist to recognise outstanding achievements by UK quoted companies in the business services sectors. The UK often leads the world in business services and is a major employer. It is one of the less well known success stories of the UK economy, and these awards are another step towards raising its profile.

Company of the yearCapita
CEO of the yearRichard Cousins, Compass
Chairman of the yearAnthony Habgood, Bunzl
Deal of the yearSale of De La Rue’s Cash Systems
Small company of the yearMears
Lifetime Achievement AwardGordon Campbell, Babcock Intl.

 

The macro environment is increasingly challenging for many service companies at present. However Business Services is also often part of the solution through the provision of outsourced services for less money using more efficient processes and practices. While we have singled out individuals, these outstanding achievements also reflect the very strong teams built up behind them.

Important disclosures can be found at the end of this section.

AWARDS AND SHORTLIST

Broadwalk Business Services Company of the Year [top]

Capita

Capita, under CEO Paul Pindar, has continued to grow organically at impressive double digit rates while maintaining an entrepreneurial culture despite being one of the largest companies in the UK. It is the undisputed leader in UK BPO (Business Process Outsourcing) market, and its rapid move to become a dominant force in the Life and Pensions arena has been remarkable. The company also continues to make strategic bolt-on acquisitions, and is highly cash generative.

SHORTLISTED

Connaught Excellent execution to maintain its leadership in the fast growing Social Housing repair and maintenance market.

Intertek The increasingly sharp focus on the “trade testing” markets is both differentiated and higher growth.

Serco Strong double digit growth has continued, while the company has made innovative international acquisitions. The company was recently promoted to the FTSE 100.

Xchanging Has grown rapidly in the Insurance and Financial markets BPO arenas, and in October announced a ground breaking Indian acquisition.

Broadwalk Business Services CEO of the Year [top]

Richard Cousins, Compass

Since being appointed CEO in June 2006 from BPB, Richard Cousins has done a fantastic job improving the management and performance of Compass. He has delivered substantial shareholder value through disposals, country exits, restructuring and most importantly implementing a new management framework across the business. The cash generated has also enabled a significant share buyback. It is now seen as one of the world’s best food service companies as well as being the largest.

SHORTLISTED

Samir Brikho, Amec Amec under Brikho has been transformed into a much more focused services business with an extremely strong balance sheet, ready for a transforming acquisition.

Harriet Green, Premier Farnell Green has re-energised Premier Farnell and the focus on the faster growth R&D engineers market, plus an enhanced web offering is driving outperformance.

Paul Lester, VT Group Lester has completed the shipbuilding joint venture on excellent terms, while growing organically and through nuclear and waste acquisitions.

Rupert Soames, Aggreko Soames has transformed and enhanced Aggreko’s operations and market leadership in temporary power, and aggressively exploited the opportunities in emerging markets.

Broadwalk Business Services Chairman of the year [top]

Anthony Habgood, Bunzl

Since joining Bunzl in 1991 Habgood has managed the transformation of Bunzl into a world class specialist distribution company. The intentional focus on essential products reduces the cyclical element of the business which is particularly attractive in the current climate. Under Habgood, and from 2005 CEO Michael Roney, the company has also developed a well honed bolt on acquisition strategy which enhances organic growth.

SHORTLISTED

Sir Roy Gardner, Compass Sir Roy as Chairman-elect appointed Richard Cousins as CEO and has overseen the transformation of Compass.

John Hamer, Fidessa Hamer has overseen the exclusive focus on and rapid growth of Fidessa, working with CEO Chris Aspinwall.

Philip Rogerson, Carillion, Aggreko and Northgate, and non executive director of Davis Service Rogerson is one of the most widely experienced Chairman in the sector. At Carillion he has overseen the successful acquisitions of Mowlem and McAlpine, and its transformation into a higher quality support services operation. Aggreko’s achievements have already been discussed.

Peter Warry, BSS Warry appointed Gavin Slark as CEO in 2006 and while making bolt on acquisitions, has ensured its continued focus on specialist trades and crucially maintained a strong balance sheet.

Broadwalk Business Services Deal of the Year [top]

De La Rue’s sale of Cash Systems for £360m

De La Rue CEO Leo Quinn accelerated the sale process of Cash Systems as it looked as though economic conditions would worsen. It was a very good price for the business under the circumstances in mid June, and enabled a £460m cash return to shareholders in November.

SHORTLISTED

Sale of TDG for £228m An excellent price for the logistics company.

Sale of Axon Group for £441m An auction developed for the business even as the demand for SAP solutions looked to be weakening.

Sale of Biffa for £1,200m The largest deal in the sector, and after a demanding experience with private sector waste contracts.

Sale of Detica for £538m At a 57% premium to the share price pre bid speculation this was a very good price.

Broadwalk Business Services Small Company of the Year [top]

Mears

Mears, under CEO Bob Holt, has very successfully grown to be one of the largest operators in the Social Housing repair and maintenance market. This continues to be a strong growth market as Local Authorities are attracted to the substantial efficiency savings provided by the best private sector suppliers. Mears has also entered the fragmented domiciliary care market in the UK, which has many similar characteristics to social housing.

SHORTLISTED

Diploma The company has been developed to have high resilience having assembled a collection of niche businesses which distribute opex rather than capex related products.

Harvey Nash Tight management and an emerging outsourcing service positions this executive IT recruitment business very well for the downturn.

Costain Now positioned as a focused leader in the more resilient UK Civils market with a strong balance sheet.

Keller Keller is a world leader in ground engineering with a wide geographical spread. Despite the slowdown it has continued to generate very good organic and acquisition related growth.

Broadwalk Business Services Lifetime Achievement Award [top]

Gordon Campbell, Chairman, Babcock International (2000 to 2008)

When Campbell became Chairman of Babcock it was a small struggling engineering company. Through a series of successful acquisitions, and strong organic growth the company has grown into one of the UK’s largest and most respected Support Services businesses. To oversee growth in market capitalisation from £186m to £1.1bn was a truly impressive achievement.

Disclaimers 2008 [top]

Advisory Panel

All the firms represented on the advisory panel, Lazard, Rothschild, Royal Bank of Scotland Group plc and UBS Limited, an affiliate of UBS AG, have corporate relationships with companies in these awards lists. Their inclusion is not in any way an investment recommendation to buy or sell shares in these companies. The inclusion of these companies do not necessarily represent the views of these firms and should in no circumstances be attributed to them.


Broadwalk Asset Management LLP

This document is issued by Broadwalk Asset Management LLP should not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorised. Broadwalk Select Services Fund Limited (the Fund) is not a recognised scheme under s.264 of the Financial Services and Markets Act. The Fund may hold positions in any of the companies mentioned above. Most if not all of the protections provided by the United Kingdom regulatory structure will not apply to investments in the Fund. The Fund is not traded on an exchange or recognised market. This document should not be distributed to any third party without the express approval of Broadwalk Asset Management LLP.