NS&I strongest ever annual sales

NS&I, the government-backed savings and investments provider, today announces its results for the year to 31 March 2007, which include its strongest ever annual sales.

Sales for the year reached £14.17bn, due primarily to major promotional activity introduced to celebrate the 50th anniversary of the launch of Premium Bonds in November 1956, alongside rapid growth in sales of NS&I's Inflation-beating Savings and Direct ISA.

Highlights of the year

Financial

NS&I grew by £5.56bn, exceeding its net financing target for the year due to the exceptional success of the 50th anniversary of Premium Bonds.

NS& I met its 5 year net financing target of £15bn and closed Direction 2007, its previous five year strategy a year early

NS&I saved the taxpayer £336.7m by reducing the cost of government borrowing

Gross sales of all NS&I products increased from £11.9bn to £14.1bn this year.

Online sales almost doubled from £1.25bn in 2005/06 to £2.43bn last year, and telephone sales increased from £1.68bn to £2.16bn.

The growth in sales can also be attributed to:

The introduction of five £1 million premium bond anniversary jackpots in 2006

NS&I's TV advertising campaign promotion featuring Sir Alan Sugar. The campaign was a huge success in raising the profile of NS&I, building relationships with new customers and strengthening brand image

Joint advertising with the Post Office

The launch of NS& I's Direct ISA

Increased profile through sponsorship of a display at the Chelsea Flower Show, the Classic FM morning show, Classical BRIT Awards and BBC Proms in the Park.

The higher profile and various improvements for customers means the total amount now invested in NS&I has risen from £73.34bn in the last financial year to nearly £79 billion in 2006/07. NS& I is one of the UK's largest savings and investments providers, with 27 million customers, offering retail savings and investments that are 100% secure, backed by HM Treasury. Its total balance of funds now represents about 16% of the national debt.

Direct channels sales growth

The NS&I website had seen rapid growth, and internet sales continued to rise in 2006/07, going from £1.25bn in 2005/06 to £2.43bn at year end

£4.43billion of sales came through Post Office counters in 2006-07 contributing to an overall total of more than £7 billion for Post Office sales of NS&I products

NS&I's people focused approach was recognised with the following awards:

NS&I attained one star status from the 2007 Best Companies Accreditation scheme

NS&I's 100% Charter Mark accreditation recognises its commitment to delivering excellent customer service through their partners, Siemens.

Jane Platt, NS& I's chief executive, said: "In the past year we reached some major milestones, achieving our Net Financing goals in four years, rather than five, and very nearly attaining our five-year target for Value Add, demonstrating the robustness and appeal of our products.

"The combined efforts of NS&I, Siemens and the Post Office have helped make this a very successful year. We aim to build on this success in the coming years by delivering sustainable long-term value to stakeholders and customers by simplifying, modernising, and diversifying the business."