On track for growth: Chairman announces positive Group performance in 2003/4

The Lloyd's Register Group's performance in the 12 months to June 30, 2004 saw the organisation deliver a healthy operating surplus. Key results were:

- income from continuing operations up by 12% to £367 million (2003: £327 million)
- a surplus, before charitable donations, of £21.8 million (2003: deficit of £ 17.6 million)
- Marine income up 16%
- Management Systems income up 9%
- Energy & Transportation income up 4%.

Revenue from the Marine business increased strongly by 16%, following a decline of 11% in 2002/3. The turnaround primarily reflected two things: the recovery of in-service survey revenues, and a marked increase in new construction activity. Lloyd's Register's share of the world fleet in gross tonnage now stands at 18.3% (up 3.8 million gt to 113.9 million gt).

Management Systems activities saw income grow by 9%, with new business gained from many of the world's large multinational companies. Energy & Transportation's overall income growth of 4% concealed considerable variation between its three market sectors: Oil & Gas revenues were up 5%; Industry was down 5%, although it continued to deliver excellent margins; while Rail grew by 26%, albeit from a low base.

Executive Chairman David Moorhouse comments: "The step change in the Group's operating result was due to the significant improvement in performance, achieved by our people, in all our major business sectors, coupled with the absence of the one-off accounting and pensions issues that dominated our reported performance in the prior year. This very positive contribution makes possible the continuation, at a significantly higher level, of our programme of education and training of others, the keystone of our constitution. We were further encouraged by the growth in cash balances, from £91 million to £134 million, which underscores both the business improvements and the achievements of our regional and central accounts teams.

"With a healthy growth in income and with all sectors of the business performing well, we are now back on track to achieve the growth and stability we set out in our strategy some four years ago. The challenges we face today are both difficult and rewarding. However, I have every confidence in our employees' ability to capitalise on them to deliver a very positive future for the Group. While we must never stop pushing the boundaries of the achievable, I am very pleased with the overall result for 2003/4 which puts us all in a confident mood for the future."

Ends

Notes to editors

• A full copy of the Chairman's report on the accounts for the year ended June 30, 2004 is downloadable from this page.
• Lloyd's Register is an independent risk management organisation. The Lloyd's Register Group works to help improve its clients' quality, safety, environmental and business performance throughout the world. Its expertise and activities cover shipping, railways, other land-based industries, and oil and gas. It develops products and services through three business streams: Marine; Energy & Transportation and Management Systems (Lloyd's Register Quality Assurance). The Lloyd's Register Group delivers these products and services worldwide to its clients through a network of entities, including: Lloyd's Register Asia; Lloyd's Register EMEA (Europe, the Middle East and Africa); Lloyd's Register North America, Inc.; and Lloyd's Register Central and South America Limited.

For more information

Michael Franklin
Lloyd's Register
Tel: +44 (0)20 7423 2713
Email: michael.franklin@lr.org

Supporting documents

Report of the Chairman on the accounts for the year ended June 30, 2004 55Kb Word doc

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Services are provided by members of the Lloyd's Register Group.
Lloyd's Register, Lloyd's Register EMEA and Lloyd's Register Asia are exempt charities under the UK Charities Act 1993.