BSI, the business standards company, has announced its results for the year ending 31 December 2015. Growth of 15% maintains the BSI’s consecutive 16-year track record of annual increases in underlying revenue and takes total revenues to £331 million. New sales orders have increased by 27% on the previous 12 months.
Howard Kerr, CEO at the British Standards Institution (BSI), commented: “Over the past few years, the BSI has developed into a truly integrated global enterprise which is able to serve its clients across the world, while at the same time broadening the service offer within and across different business streams and sectors. The introduction of the principle of Organisational Resilience at the beginning of this year is another example of our bespoke product and service offer, combining as it does our business streams of ‘Knowledge, Assurance and Compliance’ such that we can work with clients on ensuring their businesses stand the test of time.”
The key points to note from the BSI’s 2015 financial results are as follows:
*Revenue increased 15% to £331.1 million (2014: £287.1 million). Organic revenue at constant exchange grew by 9%. 2015 acquisitions added 6% revenue growth
*Underlying1 operating profit is up 22% to £35.4 million (2014: £29.1 million). Underlying operating profit at the constant exchange has grown by 18%. 2015 acquisitions added 4% profit growth
*Net asset value has increased 39% to £78.4 million (2014: £56.5 million)
*Growth was accelerated by significant acquisitions in early 2015
Exchange rate movements during 2015 had a negligible effect on revenue and underlying operating profit
The BSI’s international expansion strategy saw the business achieve an additional £22 million in revenue from overseas acquisitions in 2015. Indeed, almost 60% of total revenue is now generated outside of the UK.
Acquisitions during 2015
During last year, the BSI acquired Environmental and Occupational Risk Management Inc and Hill Country Environment, which increased its overall capability in professional services within Environmental Health and Safety and also extended the organisation’s scale in North America.
The BSI also established an important base in Africa with the purchase of PricewaterhouseCoopers’ Systems Certification business in South Africa.
Further, the BSI’s targeted financial objective of reaching £500 million of revenues by 2018 is expected to be achieved through organic growth totalling £400 million coupled with acquisitions of £100 million.
BSI’s global reach now spans 73 offices, with overall headcount increased by 18% such that the business now plays host to more than 3,500 employees. In tandem, the BSI has expanded its client base by 4% to reach 80,000 across 182 countries worldwide. BSI’s approach of ‘making excellence a habit’ is now recognised and adopted by multinationals, SMEs and Governments worldwide.
During 2015, the BSI’s role as the UK’s national standards body saw it continue to engage and influence, both at home and internationally, shaping and delivering UK expertise in Best Practice around the world.
Last year witnessed the completion of the revision of the world’s two most adopted business standards, namely ISO 9001 (Quality Management) and ISO 14001 (Environmental Management).
A determined focus on domain knowledge in innovation and emerging technologies continued with standards developed for topics such as Building Information Modelling, the Internet of Things, smart cities and advanced digital manufacturing techniques (including robot ethics).
In 2016, the BSI will continue to help businesses improve under the theme of Organisational Resilience across its priority sectors of healthcare, food and the built environment to ensure global clients are able to adapt to change and continually improve their business propositions. Organisational Resilience will support businesses in domains such as operational resilience, supply chain resilience and information resilience.
Business and financial review
This month has seen the BSI strengthen its information resilience capability with the acquisition of Espion Ltd and Espion UK. The BSI will further extend its footprint in the Southern hemisphere with the opening of an office in New Zealand. The organisation now runs offices in 30 countries around the world.
Howard Kerr concluded: “I wrote last year that, in 2014, we were able to accelerate the implementation of our strategy. This process has continued during 2015 and, despite pockets of uncertainty in the global economy, we’ve once again delivered strong financial results. This is very pleasing for our business, stakeholders and employees as it demonstrates the success of our strategy and provides us with a healthy base for continued growth in the future.”
A detailed business and financial review as well as the financial statements (and notes on thosee financial statements) may be found by following the hyperlink below to the online edition of the BSI’s Annual Report for 2015 [http://www.bsigroup.com/en-GB/about-bsi/financial-information/]
1The term ‘underlying’ is defined as ‘before exceptional items and excluding the effect of material disposals’
For a full copy of the BSI’s Annual Report 2015 click here
About the BSI
The British Standards Institution is the business standards company that equips organisations with the necessary solutions to turn standards of Best Practice into habits of excellence.
Formed in 1901, the BSI was the world’s first national standards body and a founding member of the International Organisation for Standardisation (ISO). Over a century later, the organisation continues to facilitate business improvement across the globe by helping its clients drive performance, manage risk and grow sustainably through the adoption of international management systems standards (many of which the BSI originated).
Renowned for its marks of excellence including the consumer-recognised BSI Kitemark, the BSI’s influence spans multiple sectors including aerospace, automotive, the built environment, food, healthcare and ICT.
To learn more visit: www.bsigroup.com