Annual Members Report 2010

24 January 2010
To: Members of UK Spill Association

UKSPILL ANNUAL REPORT FOR 2009-10

OVERVIEW

2010 will be remembered as the year of Deepwater Horizon, putting oil spill into the minds of everybody, and both generating business and awareness for the industry. For UKSpill, in the beginning it was a major international incident with companies such as Oil Spill Response, Vikoma, Lamor and Desmi at the forefront of support and supply to cope with the incident.

UKSpill gathered media profile on TV and Radio as opinion and fact was desperately sought by the media to follow this major event. Over the next 4 months, many UKSpill members actively responded to the needs of this spill, where the opportunities arose, but it was largely an American affair.

After the event, UKSpill responded to the need for information about the consequences of this spill by organising a Seminar, hosted by the Scottish Government, jointly with the Emergency Planning Society in Edinburgh, attended by close to 100 delegates, with key speakers from the government and BP.

Oil & Gas UK together with the Department of Energy & Climate Change set up the Oil Spill Response and Advisory Group (OSPRAG) to review the risk in the UK offshore area, and UK Spill members are involved in this initiative.

OSPRAG sees the need for trained and experienced spill responders as an important part of the armoury, and the role of the UK Spill Contractors Accreditation Scheme is considered to be valuable.

Over the year the Accreditation Scheme has been overhauled by the newly set up Standards Committee, and the proposals to reform the Scheme were put to and approved by the Scheme Steering Group in October. This Group is chaired by and involves the Environment Agencies in the United Kingdom, together with the Maritime & Coastguard Agency.

The Scheme now includes a Module for Basic Spill Response, which will offer many companies who are involved in oil spill, but are not necessarily commercial responders, ie tanker companies, the opportunity to be qualified.

The addition of an HNS/Hazmat module has been slow in coming, but a module has been developed, and with specialist input it is expected that the first accreditation will take place in early 2011.

UKSpill has had a very active events programme in 2009-10, with Inland Spill workshops and seminars for spill contractors at the Fire Service College, and in the regions, supported by the Environment Agencies, not all the events took place as demand did not always appear when promoted. A consistently successful event is the annual Marine Oil Spill Seminar, this time held at IMO headquarters in London. The Annual Members Meeting and Annual Dinner was held in Southampton, the Meeting at the new Conference Suite at OSR, and later at the Grand Harbour hotel.

Following on from the success of Interspill 2009 in Marseille, UKSpill won the right to host the next event in 2012, with a bid based on a co location with Oceanology International, at Excel, in London over 13-15 March, 2012, in effect a repeat of the event in 2006. UKSpill beat off challenges from a new organisation, Eurospill, who proposed Istanbul, and the Dutch group for Rotterdam. This year has seen the preparation of a radical programme, to expand the range of activities, with workshops, seminars and training, together with the conference, and exhibition space expanded by 50%.

UKSpill, as an Accredited Trade Organisation, secured funding from the government for member companies to attend Spillcon 2010, held in Melbourne. It is a relatively small event compared to IOSC, the next event to be held in the USA in May 2011. Unfortunately a volcano in Iceland delayed all exhibitors and delegates from returning to UK and Europe by at least a week!

SpillAlert, the UKSpill quarterly newsletter is now into its second year, and whilst most readers will download it as a pdf, it has a print circulation of 1,000 to government agencies, manufacturers and key oil spill organisations. Feedback has been very positive about both the content and the style.

So as was said last year the purpose of UKSpill is – Promotion, Standards and Information for its members. In 2010, those three words have been reinforced by the Deepwater Horizon spill and its consequences, UKSpill membership is recognised by a much wider audience than before, UKSpill is the voice of the industry.

UKSPILL IN DETAIL 2009-10

Corporate Membership – As in previous years, corporate membership remains stable at 40, and combined with other categories, totals 55. Overall, UKSpill membership, including Accredited companies as non voting (basic) members, totals 110 at December 2010, up 5%, mostly from continuing growth in membership of the Accreditation Scheme to over 80.

Member Meetings – In the 2009-10 membership year we held 2 UKSpill Marine events, over 50 attended UKSpill 9 afloat in Southampton in October, and over 70 attended UKSpill10 in June at IMO headquarters in London. Inlandspill meetings were increased to take advantage of opportunities, but the conclusion is that it works best with an annual event, rather than regional meetings.

External Events – UKSpill obtained funds from UKTI for TAP funding to support 6 members exhibiting at Spillcon 2010 in Australia, with UKSpill taking a stand and sharing it with members. Funding has now been confirmed for IOSC in 2011 for 6 companies at an increased support rate.

Interspill 2012 – The Interspill Steering Group voted unanimously to select London in 2012 as the venue, hosted by UKSpill. The other venues being considered were Rotterdam and Istanbul. As the host nation, UKSpill has an opportunity to influence the event through its management, with UKSpill Executive Director as Vice Chairman of the Steering Committee, and Director of Interspill Ltd., alongside David Salt of OSR, as co director and Vice Chairman of the Conference Committee. The main task in 2010, after venue selection, has been negotiating a contract with Reed Exhibitions for event management, and risk sharing. For 2012, the event financial risk, and reward is shared equally between Interspill and Reed. The expectation is after a lower delegate and exhibition booking in 2009, for 2012 to return to the levels achieved in 2006. For UKSpill the benefits rests with our contribution to its organisation, as it is our European platform. We have the opportunity to use it and make sure it is run in our interests.

Accreditation Scheme Management - UKSpill has steadily transformed the Scheme, principally by developing a website where the database of companies provides a valuable resource for the public, industry and Agencies in emergencies. In 2010, the Accreditation scheme has seen 10 newly accredited companies, similar to 2009, with 5 rejected and 5 companies leaving the scheme, bringing the new total to 84. The scheme has 11 pending applications. The Online assessment process is 70% complete, and the balance of companies will be completed this year. The Steering group of the Accredited Contractors Scheme met on 3rd October 2010, and approved the work of the Standards Committee in overhauling the content of Modules on the non marine side. This overhaul is expected to be implemented by Spring, with the HNS /Hazmat module nearing its first accreditation, and a review of the Marine Module being undertaken by a newly appointed Assessor. It was an unexpected and sad loss, when Alan Stubbs, the Assessor for the last 3 years, died suddenly this year. He has been replaced by John Holmes, formerly with Briggs, and he is being augmented with the appointment of Bernie Bennett to specialise in Marine Accreditation.

Government and Industry Relationships – UKSPILL is an ATO, an Accredited Trade Organisation recognised by UKTI both with the Energy sector and the Marine sector and sits on the Marine Sector Advisory Group, (MSAG) together with the British Marine Federation, Society of Maritime Industries and other trade bodies. The association is also a member of the Emergency Planning Society Oil Spill Working Group, and the Energy Institute Oil & Water Liaison Group.

MCA Contract - The MCA remains supportive of UKSpill activity, and despite Government cutbacks, is committed to maintaining its 3 year MCA contract until 2012, recognising the the support and partnership that exists, in particular with delivering a competent Accreditation Scheme.

FINANCIAL RESULTS FOR 2009-10

2009-10 ACCOUNTS – This year has seen a reverse in results, with a decline to a loss of £7,829. The overall revenue has remained similar in 2009-2010, but the year was impacted by higher event costs (UKSpill10 at IMO in London), and the costs of launching SpillAlert. The success of SpillAlert resulted in higher print costs for circulation at major events and to related organisations, and combined with higher production costs than anticipated. These costs will be reduced sharply in 2010-11. The costs were offset by advertising revenue, which was set at a low (introductory rate) in 2009-2010, and which rates have been increased for 2010-2011. In addition, completing the integration of the database supporting the UKSpill website incurred additional costs. These will not be incurred in 2010-2011.

Membership & Website income – Total income is down by 3% in 2009-10 to £55,500, from corporate membership and including sales of sponsored links, (£17,375). The latter has now been split away from membership (as it was combined in 2008-9) this year to reflect registration of UK Spill Ltd for VAT from October 2010, where membership income is VAT exempt. No significant change in membership income is expected in 2010-11.

Event and ATO income - This was significantly higher, reflecting 2 UKSpill Marine events, but with only 1 ATO event in 2009-10, and with less support from UKTI. The Marine events came with higher costs, specifically holding UKSpill10 at IMO headquarters in London. UKSPILL09 was delayed to October, putting 2009 income into 2010, but came in over forecast, with over 50 delegates. UKSPILL10 in June at IMO attracted over 70 delegates and was a major promotional success but brokeeven. There were 3 InlandSpill seminars in 2010, with good results at the Fire Service College, but with low support at the autumn co located events, these were held on the basis of covering costs.

Travel and Event costs – In 2009-10 ATO payments to members were lower reflecting a single event in Australia, and will continue at a similar level for 2009-10 with improved UKTI support approved for IOSC in May 2011.

Marketing Costs – In 2009-2010, the opportunity occurred to re vamp the website, with the merger of the database for the Accredited companies and those corporate members of the trade association. This move delivers a coordinated listing for the government agencies who support UKSpill. This was also linked to the production of the SpillAlert quarterly newsletter, by creating an archive for the newsletter, and the papers presented at UKSpill events, all of which can be downloaded now in Pdf format. The SpillAlert is emailed to a global database of over 5,000 oil spill persons, who, if they wish to download a copy are directed to the UKSpill website home page. This has resulted in a doubling of throughput on the website, raising its visibility. The cost of this upgrade to the website, and the launch year of the newsletter has been a £9,000 increase in Marketing costs, this is not a recurring cost. The cost of SpillAlert newsletter is partly underwritten by advertising income, which was expected to cover more than half the costs, but in reality the launch year production cost was higher and the income only covered 40%. In 2011, advertising space is being increased, and rates have been raised, so far with success, so whilst the production cost of the newsletter will fall by 20%, advertising should rise by 20% to reduce the overall cost to £4000 pa, similar to spend on brochures in previous years.

Administrative Costs- The principal cost is the contract for operation of the association which remained at the same level in 2009-2010, apart from a small performance linked payment. This contract is with the Executive Director, and is renewed annually, and is supervised by a governance sub committee comprising the previous chairman, and a director of the association.

Accreditation Costs – These are stable, despite the steady growth of the Scheme with new systems enabling lower costs, and despite an increase in the per diem cost of the Independent Assessor in 2009-10 with new personnel. The charges for Accreditation are levied annually in advance, which is now well established, and new applicants are now required to pay in advance on a non refundable basis, if they are failed.

2010-11 FORECAST – As with last year, fee income is coming in slowly, 2 companies have resigned, but new applicants are steady. ATO and event income is also expected to be stable with the Marine event planned for London, on the river this year. A return to a small surplus of 5% is expected in 2010-11. In November 2010, the UKSpill office moved to Derbyshire to improve administration, with the registration for VAT, and to improve response to enquiries.

Roger Mabbott,Executive Director, UK Spill Association, Unit 1, Riverside Business Park, Buxton Road, Bakewell, Derbyshire DE45 1GS

T 0845 625 9890
M 07793 649 643
E info@ukspill.org
Website www.ukspill.org

UK SPILL LTD Profit & Loss A/C

   
Year Ended
30th Sept
20010 (Draft) £
  
Year Ended
30th Sept
2009 £
  
TURNOVER      
Membership Subscriptions
38,125
57,350
MCA Assistance and Support
19,506
21,256
Spill Alert Ads
6,680
Sonsored Links
17,375
Event Sales
22,741
4,289
ATO Income
6,175
27,636
Accreditation Fees
30,625
28,100
 
 
141,227
138,631
 
ADMINISTRATION EXPENSES
UK Spill Administrative Services (Fleetward)
48,000
45,840
Accreditation Expenses
29,534
28,339
Marketing
23,241
14,483
Travel and Subsistence
9,808
8,731
Events and Meeting Costs
29,047
22,279
Information Services
-
363
Motor Costs
6,450
10,321
Sundry Expenses
823
115
Accountancy
1,727
460
Bank Charges
426
567
 
 
149,056
131,498
 
RESULT FOR THE YEAR
- 7,829
7,133
       
       

UK SPILL LTD Balance Sheet

   
2010
2009
£
£
£
£
Current Assets        
Debtors
22,634
  
5,239
  
Cash at Bank and in Hand
5,999
  
23,115
  
Creditors:amounts falling due within one year
- 10,610
  
- 2,502
  
Net Current Assets  
18,023
  
25,852
Total assets less current Liabilities  
18,023
  
25,852
Net Assets  
18,023
  
25,852
Capital and Reserves        
Called up share capital
2
  
2
  
Profit and loss account
18,021
  
25,850
  
18,023
  
25,852