NCP Services driven into the red as debts pile up

NCP Services driven into the red as debts pile up
Simon English
02.04.09

NCP Services, the parking-tickets and car-clamping business owned by private-equity house 3i, has plunged into a loss after running up hefty debts.

Accounts just filed at Companies House show that the firm has accrued losses of £23 million, partly thanks to a £103 million debt pile.
It is paying almost £10 million a year just to service this debt.

A note in the accounts reveals that it recently agreed revisions to its senior debt facility, although the company strongly denies suggestions it was close to breaching any of its covenants.

The company was spun out of National Car Parks in 2007 and relies largely on contracts from local councils such as Westminster. It has deals with 60 councils at present.

Alongside the traffic-wardens business, it operates six London bus routes and runs a debt-recovery arm.
A new management team was parachuted in last year to overhaul the company, since when it claims to have turned in a strong performance.

Chief financial officer Steve Dolton said: "We have refinanced on excellent commercial terms. We have turned the business around and are looking to expand. The business is extremely solvent."
The company has just bought 17 new buses - a sign of its own confidence in the future, says Dolton.
Contracts with Camden and Westminster are up for tender next year, with NCP optimistic that it is in a good position to retain the business.
"I would say our relationship with our customers is very good," says Dolton.

The debt is equally held by Royal Bank of Canada and Lloyds Banking Group. Dolton says the banks are happy with the finances and are not applying any pressure for an early repayment of the debt.
A hedge against interest-rate movements cost the firm £2.9 million.
According to the accounts, the highest-paid director - assumed to be chief executive Mark Underwood - got £450,000 last year.
He joined the company last June from the Geo Group.
NCP Services was founded in 2000 to take advantage of the increasing demand for parking enforcement services from local councils.
It is majority owned by private-equity house 3i, while management has a minority holding.
Former parent company NCP is now owned by Australia's Macquarie Bank, which bought the business from 3i in 2007 for £790 million.

The traffic services business has faced trade union disputes in the recent past, with GMB in particular riled by what it sees as asset-stripping and profiteering by 3i.

The Alternative (Dick Turpin) Parking Awards 2008

The Alternative (Dick Turpin) Parking Awards 2008

This annual event is being held at 11am outside the Dorchester Hotel in London on Friday 8th March.

It is being sponsored by ParkingAppeals.co.uk the organisation that exposes unlawful activity by local authorities and the parking enforcement contractors and assist motorists with their parking appeals.

ParkingAppeals.co.uk annual "Alternative (Dick Turpin) Parking Awards 2008" which, coincidentally happen on the same day as the British Parking Awards organised by the Parking Review has attracted many nominations from the length and breadth of the land.

Competition was fierce ...

This year's winners are:

The Most Inventive Council

This award goes to the council that has come up with the best way to increase their revenue. This year's winner is Islington Council who stooped to a new low to rake in parking fines.
When Philip Langsdale parked his car outside his home he knew from experience ther were no restrictions.
But when the 51-year-old returned to his motor in Highbury, north London, he was astonished to find yellow lines had been painted underneath - and a parking ticket had been slapped on the windscreen.
More ...

The Least Honest Parking Attendant of the Year Award

This goes to former terrorist Mustapha Boutarfa who forgot to tell his employer NCP Services (and they never checked) that he had been to prison for his involvement in the Paris Metro bombings. He was only rumbled after three years! As he may not be available to collect his award it will be presented to Richmond Council on his behalf as they profited to the tune of £150,000 from his activities ... and then refused to refund any of the money giving the best excuse ever:

No refunds because ... being a terrorist ... "does not constitute grounds for cancellation of penalty charge notices issued by him ... the parking regulations do not allow this."
Parveen Bindra, Legal Services Department, Richmond Council" More ...


Enforcement Contractor of the Year Award
This award goes to NCP Services who cancelled Christmas bonuses for its staff in Brighton 'for fear of causing offence to non-Christian employees.


Spokesman Tim Cowen said:
"We employ people from more than 100 countries and feel it is perhaps no longer appropriate just to recognise Christmas celebrations."
He also said it could be seen as unacceptable for a transport firm to hold alcohol-fuelled parties. More ...

Speaking of alcohol fuelled parties, 'Moulin Mule' cocktails and dancing girls, the British Parking Awards are being held at the Dorchester Hotel at 11.30am tomorrow shortly after our awards where NCP Services are shortlisted for a number of awards ... including the Training Award...
"Our future in their hands: the Btec Team Leader Programme."
Click here to see how NCP trained their Parking Attendants in one northern city, and how Mr. Cowen, spokesman at the time for NCP before he became spokesman for NCP Services explained their actions.

To view the British Parking Awards list click here

Hairdresser accused of attacking NCP Services Parking Attendant

Hairdresser and Chairman of Kilburn's Business Association, Zulfi Amade recounted an horrific tale last night at a meeting of the London Motorists Action Group chaired by Lord Lucas.

Actor Tom Conti and AA's Edmund King were amongst the group that sat in stunned silence as Zulfi detailed how he had been pinned to a wall by NCP Services' Parking Attendants and subsequently arrested and accused of assault. He was held in cells for 5 hours just before Christmas.

He had spotted a Parking Attendant issuing a Penalty Charge Notice to a car belonging to a waitress in a restaurant adjacent to his shop and had asked the PA not to ticket while he fetched the waitress. She agreed but while he was away ticketed the car.

The Parking Attendant accused him of attacking her and he was held by three more who turned up at the scene and later arrested by the Police after the accusations by the NCP Services attendant.

The full shocking story was reported here in the Ham and High.

However, the Police have since dropped all charges.

An NCP Services spokesman said " Camden Police have confirmed to us that they feel our Parking Attendants behaved appropriately by reporting the incident but that due to the nature of the evidence they were able to gather, which came down to differing individual views of the incident, they have not on this occasion proceeded with criminal charges."

Oh really. ' Differing individual views?'

Was the 'differing individual view' that the Parking Attendant was NOT assaulted at all then?

The month before Tim Cowen of NCP had said: "This was a frightening incident after which a female parking attendant received a deep cut to her face and was in hospital until late evening."

Now that all charges have been dropped Mr. Amade intends to initiate legal action after witnesses, including a solicitor, corroborated his story.