Electronic Data Processing PLC Annual Financial Report and Notice of AGM (4653V)

TIDMEDP

RNS Number : 4653V

Electronic Data Processing PLC

30 January 2017

30 January 2017

Electronic Data Processing PLC (the 'Company')

Annual Financial Report and Notice of AGM

The Company released its preliminary results announcement of annual results for the year ended 30 September 2016 on 20 December 2016.

The Company has today published its Annual Report and Accounts for the year ended 30 September 2016 on its website www.edp.co.uk and has submitted it to the UKLA. This will shortly be available for inspection at the National Storage Mechanism which is located at www.hemscott.com/nsm.do.

Printed copies of the accounts will be posted to shareholders in due course and will include a Notice convening the Annual General Meeting at Tapton Masonic Hall, Shore Lane, Sheffield S10 3BU on 21 March 2017 at 12.00 noon.

A condensed set of the Company's financial statements and extracts of the Strategic Report were included in the Company's preliminary results announcement. That information, together with the Appendix to this announcement, which contains additional information that has been extracted from the Annual Report and Accounts for the year ended 30 September 2016, constitutes the material required to be communicated in unedited full text for the purposes of compliance with DTR 6.3.5.

Appendix

1. Principal Risks and Uncertainties

A description of the principal risks and uncertainties that the Company faces is extracted from pages 6 and 7 of the 2016 Annual Report and Accounts.

"We operate in a changing economic and technological environment that presents risks, many of which are driven by factors that we cannot control or predict. The key risks and uncertainties facing EDP and the measures taken to mitigate these risks are as follows:

Systems and networks

Risk

EDP's business operations rely significantly on the efficient and uninterrupted operation of its information technology systems and networks.

Our computer network may be vulnerable to unauthorised access, viruses and other disruptive problems.

Potential impact

Any damage or interruption to EDP's networks, however caused, could have a material adverse effect on the delivery of our products and services.

A party that is able to override security measures could misappropriate proprietary information or cause disruption to our operations.

Mitigation

We continually review and test the security of internal systems and networks and have developed recovery plans in the event of systems disruption. We use a third party to internally and externally scan our network to identify any potential vulnerability.

Where reliance is placed upon externally provided systems and networks we undertake regular performance ability reviews and ensure that contracts provide for an appropriate level of service maintenance.

Product technology advances

Risk

The markets in which EDP operates are characterised by evolving technology, market practices and industry standards.

Potential impact

Competitors could develop superior products or more cost-effective techniques which could render our products uncompetitive or less acceptable to the market. This could result in the loss of new revenue opportunities, the non-renewal of contracts by existing customers or the failure of users of our legacy applications to migrate to Quantum VS.

Mitigation

We have an ongoing commitment to research and development which allows us to identify and adapt to any technological and market changes that do occur thereby ensuring that our products continue to meet the demands of our customers.

External economic factors

Risk

As with most other businesses in the UK, our operations can be adversely affected by a significant downturn in the economy.

Potential impact

Restricted availability of finance for businesses and a stagnant or recessionary economy could have an adverse effect on the prospects for EDP, as potential customers, particularly in the builders and timber merchants sectors may scale back their IT plans in response to funding difficulties and/or reduced prospects for their businesses.

Mitigation

We seek to ensure that a significant proportion of our revenues are derived from long-term contracts with our customers, that our products appeal to businesses operating in a range of business sectors and that payments for our recurring fees are received annually in advance.

Competitor activity

Risk

EDP operates in a competitive environment.

Potential impact

New entrants to our marketplace and actions taken by existing competitors could have an impact on our levels of business activity and product pricing in the market generally.

Mitigation

We endeavour to provide excellent customer support together with high quality products at a competitive price in order to develop and protect strong customer relationships.

Key employees

Risk

In common with all people-based businesses, our success will, to a significant extent, be dependent on the experience of the Board and senior management. The retention of the services of EDP's key employees cannot be guaranteed.

Potential impact

The loss of key employees could have a material adverse effect on EDP.

The failure to retain and develop key technical skills and product knowledge could hinder EDP's future prospects.

Mitigation

We are continually focused on the need to recruit, retain, reward and motivate staff with the appropriate skills."

2. Statement of Directors' Responsibility

The following responsibility statement is repeated here solely for the purpose of complying with Disclosure and Transparency Rule 6.3.5. This statement relates to the full 2016 Annual Report and Accounts and is extracted from page 11 of the 2016 Annual Report and Accounts.

"Responsibility statement of the Directors in respect of the annual financial report

We confirm that to the best of our knowledge:

 
      --   the financial statements, prepared in accordance 
            with the applicable set of accounting standards, 
            give a true and fair view of the assets, 
            liabilities, financial position and profit 
            of the Company and the undertakings included 
            in the consolidation as a whole; 
 
      --   the annual report and financial statements, 
            taken as a whole, provides the information 
            necessary to assess the Company's performance, 
            business model and strategy and is fair, 
            balanced and understandable; and 
 
      --   the Strategic Report includes a fair review 
            of the development and performance of the 
            business and the position of the Issuer and 
            the undertakings included in the consolidation 
            taken as a whole, together with a description 
            of the principal risks and uncertainties 
            that they face. 
 

The Directors are shown on page 9.

By order of the Board

J.M. Storey

Director

19 December 2016"

For further information please contact:

 
 Julian Wassell     James Storey        Toby Mountford 
  Chief Executive    Finance Director    Citigate Dewe Rogerson 
  0114 262 2010      0114 262 2010       020 7638 9571 
                                         07710 356611 
 

www.edp.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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January 30, 2017 06:42 ET (11:42 GMT)