Portfolio definitions

1 – Contract portfolio definition

Customer contracts are usually either "fixed price", "as-used" (based on volume) or mixed contracts. Contract portfolio is the measure of the annualised value of these customer contracts.

2 – Contract portfolio valuation

The contract portfolio value is typically recorded as the annual value from the customer contract. However, in some cases – especially "as-used" (based on volume) and mixed contracts – estimates are required in order to derive the contract portfolio value. The key points in respect of valuation are:

  • "As-used" contracts: These are more typical in workwear, hygiene and catering, where elements of the contract are often variable and based on usage. Valuation is based on historic data (where available) or forecast values.
  • Income annualisation: In some instances, where for example the underlying contract systems cannot value portfolio or there is a significant "as-used" element, the portfolio valuation is calculated using an invoice annualisation method.
  • Inter-company: The contract portfolio figures include an element of inter-company revenue.
  • Job work and extras: Many of the contracts within the contract portfolio include ad hoc and/or repeat job work and extras. These values are excluded from the contract portfolio.
  • Rebates: The contract portfolio value is gross of customer rebates. These are considered as a normal part of trading and are therefore not removed from the portfolio valuation.
3 – New business/Additions

Represents new contractual arrangements in the period with a new or existing customers and additional business added to existing contracts.

4 – Terminations/Reductions

Represents the cessation or reduction in value of an existing customer contract or the complete cessation of business with a customer.

5 – Net Price Increases

Represents the net change in portfolio value as a result of price increase and decreases.

6 – Acquisitions/Disposals

Represents the net value of customer contracts added or lost as a result of businesses acquired or disposed in the period. Also includes the net volume related changes for the workwear businesses, where it is common practice for customers to increase or decrease service volumes according to their daily operational requirements.

7 – Retention rates

Retention rates are calculated on total terminations (terminations and reductions).

紧急救援高清完整版-紧急救援免费在线观看