News story

UK Export Finance: annual report and accounts published

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

UK Export Finance provided £2.3 billion of support for UK exports in the year ending 31 March 2014.

Plane, cargo ship and truck

UK Export Finance, the UK’s export credit agency, provided £2.3 billion of support to UK exporters to help businesses achieve sustainable growth in the financial year 2013 to 2014.

The support, detailed in UKEF’s Annual Report and Accounts, showed an increase from £0.4 billion to £1.3 billion for civil exports, alongside its continuing support for the sale of Airbus aircraft overseas.

UKEF has significantly increased the number of cases and the range of support it provides. While the value of the business supported in the preceding year was higher at £4.3 billion, this was dominated by a single £2 billion defence case (note: periodically, large or one-off defence contracts have tended disproportionately to impact UKEF figures). In contrast, no single case dominated to such an extent this year. Support was spread across a wider variety of exporters selling to more overseas markets, with more individual guarantees and policies issued.

  2013-14 2012-13
Total business supported (£m) 2,272 4,295*
Civil business, excluding aerospace (£m) 1,310 445
Number of guarantees and policies issued 619 368
Number of countries 71 58
Number of exporters 130 84

*This included a single £2 billion defence case.

Supporting exports, protecting the taxpayer

UKEF is mandated to operate at no net cost to the taxpayer. It earned premium income of £120 million, while paying claims of £13 million. It recovered £135 million owed as a result of past defaults on UKEF-guaranteed loans.

Its support benefited a wide range of industries, including automotive, petrochemical, oil and gas, construction and utilities.

Individual support per case ranged from £10,000 to £500 million, with the size of exporting companies supported ranging from micro to multinational.

Support included a US$700 million loan in respect of the Sadara refinery in Saudi Arabia, the largest limited recourse project financing that UKEF has ever supported. The report lists all the guarantees and insurance policies issued.

Non-financial support was also provided by its network of Export Finance Advisers, which increased in number from 18 to 21 in the year.

UKEF has recently announced new plans to increase the competitiveness of its support, including an enhanced ability to lend directly to overseas buyers of UK goods and services.

There is a strong pipeline of business for the year ahead, as UKEF steps-up its marketing both in the UK and overseas. Furthermore, UKEF is becoming more agile and proactive in its support for UK exports. For more information read its business plan for 2014 to 2017.

Financial overview - five-year summary (£m)

  2013-14 2012-13 2011-12 2010-11 2009-10
Business supported 2,272 4,295* 2,318 2,924 2,206
Premium income 120 133 85 96 58
Claims paid 13 7 6 30 48
Net operating income 50 135 147 204 272

*This total included support for a one-off £2 billion defence deal.

The reduction in net operating income for the year was largely caused by a reduction in the release from underwriting funds closed in the year, a reduction in the release of provisions for recoverable claims, decreased interest income from underwriting activities, and foreign exchange changes. For full details read the Directors’ Report on page 69 of the Accounts.

Analysis: support by product used (£)

  • Buyer Credit 2,659,927,712
    Buyer Credit with Bond Insurance 46,643,226
    Bond Support Scheme 36,523,650
    Supplier Credit Financing 27,539,129
    Export Insurance Policy 15,156,201
    Export Working Capital Scheme 4,910,398
    Letter of Credit Guarantee Scheme 3,963,781
    Bond Support and Export Working Capital Scheme 1,565,191

Analysis: support by product used (no. of exporters supported)

  • Bond Support Scheme 68
    Export Insurance Policy 32
    Buyer Credit 12
    Export Working Capital Scheme 10
    Supplier Credit Financing 5
    Bond Support and Export Working Capital Scheme 2
    Buyer Credit with Bond Insurance 1
    Letter of Credit Guarantee Scheme 1

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Published 18 June 2014