Financial and legal information

Accounts

Financial Review

The SAS Group of Companies is pleased to report a period of strong operational and financial growth, seeing a significant increase in transactions across its subsidiaries. Highlights of the year include an increase in turnover of 21% with operational profits increasing by 22% year on year.

Annuity revenues, as forecast, now account for 69% of total revenue. The group is forecasting annuities to remain at this high level in 2011.

Operations review

SAS has continued to put significant investment into managed service systems, business continuity planning and staff resource across the company. This will strengthen the company for future growth and allow it to maintain its high levels of customer service.

Review of Business

The Directors are very pleased with the current performance of the company and are confident it will continue to improve in the future.

Principal risks and uncertainties facing the group

The directors believe that they have a strong management team and robust processes in place to protect the company. Strong sales performance in 2010 has provided clarity for 90% of 2011 revenues.

Key performance indicators considered by the company

The management focuses extremely closely on all significant facets of the business to ensure continuous improvement is delivered in all areas.

• Organic profitable sales growth - increase in sales revenue by market/customer on a profitable basis
• Strengthening and development of key partner relationships
• On time in full customer service levels - measured precisely against customer requirement
• Margin return on sales - gross profit as a percentage of sales revenue
• Net return on sales - operating profit as a percentage of sales revenue
• Operating cash generation and free cash flow - cash generated from operations less tax and interest paid

Future developments

The company’s on-going strategy is to maintain and develop the high quality of its managed services capability as well as capitalise on the service gaps inherent in cloud computing. Further development of its strong trading relationships and customer base will continue to produce further growth.

Company registration details

Investors

The SAS Group of Companies is owned by its founder, Stephen Stanway, who retains a 75% shareholding in the business; the balancing 25% is distributed between the SAS management team and staff.

Advisers