We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Worldpay Grp | LSE:WPG | London | Ordinary Share | GB00BYYK2V80 | ORD 3P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 435.40 | 434.50 | 434.80 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMWPG
RNS Number : 4368B
Worldpay Group PLC
04 April 2017
4 April 2017
Worldpay Group plc
(the "Company")
Annual Report and Accounts 2016 and Annual General Meeting 2017
The Company announces that today it has released the below listed documents:
-- Annual Report and Accounts 2016 for the financial year ended 31 December 2016 ("Annual Report and Accounts 2016");
Hot Features
Premium
-- Notice of the Annual General Meeting 2017 ("AGM"); and
-- Form of Proxy for the AGM.
In accordance with Listing Rule 9.6.1R, these documents have been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/nsm.
The Annual Report and Accounts 2016 and the Notice of Meeting 2017 can also be viewed on the Company's corporate website at http://investors.worldpay.com.
The AGM is scheduled to be held at 11.00 on Wednesday 10 May 2017 at the offices of Allen & Overy LLP, 1 Bishops Square, London, E1 6AD.
The information contained in the Appendix below, which is extracted from the Annual Report and Accounts 2016, is included solely for the purposes of complying with Disclosure and Transparency Rule ("DTR") 6.3.5R. The information should be read in conjunction with the Company's Full Year Results Announcement made on 7 March 2017. This announcement and the Full Year Results Announcement together constitute the material required by DTR 6.3.5R to be communicated to the media in unedited full text. This material is not a substitute for reading the full Annual Report and Accounts 2016. Page numbers and cross references in the extracted information refer to page numbers and cross references in the Annual Report and Accounts 2016.
Investor relations:
Charles King, Investor
Relations Director
Media: Tel: +44 (0)
Claire Hardy, Head of 203 664 6171
External Communications Tel: +44 (0)
James Murgatroyd / Andrew 203 664 4902
Hughes, Finsbury Tel: +44 (0)
207 251 3801
Group Company Secretary:
Derek Woodward, Group Company Secretary Tel: +44 (0) 7342 082 043
About Worldpay Group plc
Worldpay (LSE: WPG) is a leader in global payments. We provide an extensive range of technology-led payment products and services to over 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world. Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types. http://investors.worldpay.com/
Appendix
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report and Accounts and the Group and parent Company financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and parent Company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with IFRS as adopted by the EU and applicable law and have elected to prepare the parent Company financial statements in accordance with UK Accounting Standards, including FRS 101 Reduced Disclosure Framework.
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent Company and of their profit or loss for that period. In preparing each of the Group and parent Company financial statements, the Directors are required to:
-- Select suitable accounting policies and then apply them consistently; -- Make judgements and estimates that are reasonable and prudent;
-- For the Group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU;
-- For the parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the parent Company financial statements; and
-- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the parent Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic report, Directors' report, Directors' Remuneration report and Corporate governance statement that complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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 or loss of the Company and the undertakings included in the consolidation taken as a whole; and
-- The Strategic report and the Directors' report include 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.
We consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy.
The Strategic report and the Directors' report comprising pages 6 to 99 have been approved and are signed by order of the Board by: Derek Woodward, Group Company Secretary, 7 March 2017.
Principal risks and uncertainties
Industry (Risk movement in the year: no risk
movement)
------------------------------------------------------------------------
Worldpay's acquiring business model is dependent
on licences and the continuing support from
the payment franchises such as Visa and MasterCard.
Any infringement by Worldpay of the franchise
rules and regulations, or the inability to correctly
implement mandatory changes, could result in
the loss of the card franchise support. This
could result in a curtailment of Worldpay's
business and/or strategic plans, financial penalties
or reputational damage.
Risk categories:
* Compliance and regulatory
* Reputational
Risk appetite
Worldpay will always seek to remain current
and adhere to all franchise rules unless we
are prevented from doing so by our system infrastructure.
Where this is the case, Worldpay will apply
for specific waivers pending full compliance.
Risk indicators
* Success in influencing industry developments.
Lobbying for rule changes to benefit the industry and
bespoke models accommodating non-standard business
* Non-compliance assessments from payment franchises
when in breach of franchise rules, guidelines and
regulations
* Waiver log tolerance - detailing recommendations to
the business; payment franchise waivers; interaction
with payment franchises confirming arrangements
Potential impacts
* Failure to meet payment franchise requirements for
products and services may lead to reputational damage
and to financial penalties from the payment
franchises
* As a last resort, payment franchises may revoke
Worldpay's franchise licence in existing markets or
not grant new licences in prospective markets
* Failure to operate franchise licences to required
specifications may lead to lower acceptance rates and
therefore potential reputational damage and customer
impact
Mitigants
* Specific team dedicated to support implementation of
payment franchise requirements and central
relationship management
* Board level engagement with the card franchises to
help engagement and influence the franchise approach
* Internal process to capture, review and implement
payment franchise changes
* Regular meetings with payment franchises and
attendance at payment franchise forums/training, e.g.
the UK Acquirer Forum
* Ongoing monitoring and oversight of our merchants to
ensure compliance
* Participation in industry forums
Actions in 2016
* Went live with Worldpay's own franchise licences for
Visa and Mastercard in Hong Kong, Singapore and
Australia eliminating the need for a sponsor and
removing their risk appetite from our operations
* Continued work with the regulators and payment
franchises to understand and influence the direction
of travel of new legislation and requirements
* Embedded the Regulatory and Industry Affairs Group to
review and assess EU and UK governmental initiatives
* Developed a franchise management strategy
------------------------------------------------------------------------
Legal, compliance and regulatory (Risk movement
in the year: risk increased)
------------------------------------------------------------------------
Worldpay fails to adhere to legal requirements
or fails to design, resource and implement a
risk-based regulatory and financial crime compliance
programme.
In the Compliance and Regulatory landscape,
a number of new regulations for the payments
industry have been enacted or proposed in 2016
by various regulators around the world. Given
the timing and details of their implementation
are inherently uncertain, this has resulted
in an increase in risk.
Risk categories:
* Compliance and regulatory
* Reputational
Risk appetite
Worldpay has no appetite to knowingly breach
the spirit and letter of the laws that apply
to us. In areas of uncertainty or ambiguity,
we will have a robust justification and clear
rationale for the choices we make.
Risk indicators
* Engagement with regulators
* Results of mandatory legal and compliance training
* Number of complaints (General/Ombudsman)
* Compliance monitoring results
* Policy breaches
* Suspicious Activity Reports (SARs) produced and
submitted to the National Crime Agency when
suspicious activity is detected
* The results of reviews, audits on policy and gambling
blacklist monitoring
Potential impacts
* Failure may result in Worldpay or its customers
breaching laws, resulting in reputational damage,
loss of customers and financial penalties
* Non-compliance may result in loss of business licence
* Worldpay may be used to facilitate financial crime
Mitigants
* Dedicated Legal and Compliance functions and a
network of external advisors who maintain a constant
review of current and future legal developments and
their potential impacts
* Policies and procedures implemented and mandatory
training for all colleagues on anti-bribery and
corruption, competition, data protection, anti-money
laundering and sanctions
* Legal risk appetite heat maps supported by
transaction monitoring and blocking of cards from
countries where the activity is illegal
* Regular business meetings incorporating the Legal and
Compliance teams to advise on the changes required to
address identified risks
* At Board level, Worldpay actively engages with
regulators and Government bodies to support and
suggest the direction of future regulatory
developments
* Proactive engagement with regulators and relevant
government agencies to educate and support their
thinking and policy in the payments industry
Actions in 2016
* Produced an enhanced Gambling product heat map and
extended our external specialist Gambling Counsel
alert service
* Continued to build a trusted relationship with the
regulators via regular meetings and the timely and
accurate delivery of mandatory information requests
------------------------------------------------------------------------
Settlement (Risk movement in the year: no risk
movement)
------------------------------------------------------------------------
Failure to settle with merchants due to lack
of availability of funds as a result of card
scheme or systemic bank failure, or funds not
processed correctly, resulting in financial
loss (compensation) and severe reputational
damage.
Risk categories:
* Liquidity
* Operational
* Reputational
Risk appetite
Worldpay has no appetite for the failure to
settle with merchants.
Risk indicators
* Payments and settlements processed outside of service
level agreements
* Average time to resolve investigation queries
* Number of unreconciled items
Potential impacts
* Failure or delay to customer payments
* Severe reputational damage and/or financial loss
Mitigants
* Undrawn bank facilities in place ready to be utilised
in the event of non-receipt of funds from card
franchises
* Card franchise balances are monitored daily to ensure
that funds are received and sufficient cash flow is
available for us to pay merchants
* Daily reconciliation of all Worldpay merchant
specific bank accounts
* Daily cash management
Actions in 2016
* Enhanced monitoring and reporting
* The US settlement system is in the process of being
re-platformed with a complete review of associated
controls, processes and reporting
------------------------------------------------------------------------
Credit (Risk movement in the year: risk increased)
------------------------------------------------------------------------
Potential loss outside of agreed appetite arising
from the failure of a merchant, card franchise,
partner bank or alternative payments provider
to meet its obligations in accordance with agreed
terms.
Certain external events, for example the EU
referendum, have created uncertainty in the
UK economic environment. In addition there is
increased uncertainty in the global economic
environment which may have an impact on the
financial performance of Worldpay's customers
and lead to increased credit risk.
Risk categories:
* Credit
Risk appetite
Worldpay budgets for credit loss on an annual
basis, however our risk appetite seeks to optimise
a high level of return whilst achieving appropriate
risk versus reward performance in line with
Worldpay's growth strategy.
Risk indicators
* Customer approval rates
* Movements in the aggregated credit bureau portfolio
scores
* The proportion of adverse actions undertaken after a
credit investigation has been conducted
* The distribution of the portfolio across the various
credit grades
* The financial performance of the Group's top
exposures
* Credit Watch List
* Partner bank solvency ratios
Potential impacts
* Increase in credit exposure leading to increase in
financial loss
* Rejection of applications leading to a decrease in
profitability
* Merchant fails to provide goods or services to their
customers leading to an increase in chargebacks that
cannot be passed on to a failed merchant, resulting
in financial loss
Mitigants
* Each application from a merchant or proposed
partnership with a bank or alternative payment
provider is risk assessed
* Where approval is not automatic, the case is referred
for a secondary review
* A transaction monitoring system equipped with
credit-specific rules and models scans each
transaction and aggregates merchant behaviour
* A Credit Watch List is used to identify at-risk
merchants that may result in financial loss. Monthly
review defines action plans to mitigate exposure and
potential loss
* Merchant Holding File maintained to assist in
delaying/deferring settlement to merchants when there
is a risk of loss to Worldpay
Actions in 2016
* The acceptance criteria utilised in our underwriting
department has continued to be reviewed and refined
throughout the year
* The automated monitoring system rules and models were
redesigned in the US to improve the accuracy of
alerts. Quarterly service reviews of the system
performance were conducted
* Risk mitigation products have been developed and
implemented to facilitate the replacement of cash as
a primary source of security
* The Worldpay sector risk appetites were reviewed and
the stance re-approved
------------------------------------------------------------------------
Data security (Risk movement in the year: no
risk movement)
------------------------------------------------------------------------
Financial loss and reputational damage due to
a breach of confidential data or technology
disruption caused by internal/external attack
on Worldpay or its third-party suppliers/merchants.
Risk categories:
* Operational
* Reputational
Risk appetite
Worldpay has no tolerance for the loss of, or
otherwise unauthorised or accidental disclosure
of, customer or other sensitive information.
Risk indicators
* Number of attempted security breaches
* Number of actual security breaches
* Number of breaches to policy
* Penetration testing results
* Independent security reviews
* Ethical hacking results
* Number of identified security risks outstanding
Potential impacts
* The loss of confidentiality, integrity or
availability of customer or other sensitive
information could result in regulatory or legal
sanctions and/or significant reputational damage
* Increased costs for remediation and reduced ability
to deliver strategic objectives
* Additional costs by way of compensation, litigation,
fines, loss of sponsorship and loss of productivity
as resources are redirected to manage incidents
Mitigants
* A suite of security tools and processes to ensure
that only authorised users and devices have access to
Worldpay systems and data
* Dedicated teams proactively monitor the environment
for potential incidents and carry out security
investigations
* Security updates identified and remediated in a
timely manner
* Vulnerability identification and remediation
* Anti-malware software
* Distributed Denial of Service (DDoS) protection
* Supplier security risk assessments
* PCI compliance programme
Actions in 2016
* ISO certification of key security domains
* Established an independent Security Advisory Board to
review and advise on Worldpay's approach to security
* Created a bug-bounty scheme which provides financial
rewards to individuals identifying system errors or
vulnerabilities
* Enhanced the Company-wide phishing security awareness
campaign
* Improved communication channels with government and
law enforcement agencies
------------------------------------------------------------------------
Technology (Risk movement in the year: no risk
movement)
------------------------------------------------------------------------
Unscheduled system downtime impacts our service
to merchants, causing reputational damage and
financial loss.
Risk categories:
* Strategic and business
* Operational
* Reputational
Risk appetite
Worldpay is not willing to accept risks which
compromise our ability to process merchant transactions.
Risk indicators
* Availability of services
* Number and severity of incidents
* Time to resolve incidents
Potential impacts
* Any disruption to the availability of Worldpay's
global payments platform or network could result in
interruption of service to customers, loss of
business and revenue and significant additional costs
by way of contractual damages and operating expenses
* Increased costs for remediation and reduced ability
to deliver strategic objectives
Mitigants
* Worldpay operates a full suite of monitoring tools to
minimise system downtime
* Dedicated support teams exist to support Worldpay's
core systems
* Service-orientated operating models ensures
appropriate response and resolution of incidents
* Data centres are paired, providing fail over
capability
* Disaster recovery plans are documented and regularly
tested
Actions in 2016
* Development and initiation of roll-out of global
desktop solution and enterprise collaboration tools
* Expansion of core data centre capacity to support
strategic platform growth
* Simplification of core network to improve resilience,
reliability and performance
* Consolidation of platforms into core data centres
* Increased redundancy of network links
* Remediation of the High Capacity Gateway (HCG)
resulting in a more stable and robust platform
------------------------------------------------------------------------
Scale of change (Risk movement in the year:
no risk movement)
------------------------------------------------------------------------
The risk of loss of profit, opportunity, reputation
or disruption to business activities as a result
of our inability to manage the magnitude of
change being undertaken.
Risk categories:
* Operational
Risk appetite
Worldpay has no appetite for the failure to
deliver high-priority projects on time, to budget,
to expected quality and in a way that safeguards
the wellbeing of the colleagues working on the
project.
Risk indicators
* Ratio monitoring of permanent colleagues versus
temporary/contractors to ensure key knowledge is
retained in the business following implementation of
changes
* Monitoring of completion of the new technology
platform training to ensure all colleagues have
undergone role specific and general training ahead of
phased releases
* Tracking of actual cost versus budget costs of
projects and on-time delivery
* Number of projects
* Review of the resourcing available to complete
projects
Potential impacts
* Failure to deliver high-priority projects impacting
customer and/or reputation
* Disruption to normal business activities
* Development of single points of failure
* Increased attrition rates amongst colleagues
Mitigants
* Governance structure in place to manage information
and decision making across the senior management.
This includes local project meetings, steering
committees and senior management reporting
* An analysis of the impact on resources of business as
usual change requests compared to large technology
project plans is conducted to identify resource
constraints
* An engagement survey is carried out to identify areas
where colleagues are under pressure
Actions in 2016
* Continuing development of Organisational and
Readiness dashboards to track the new technology
platform project at divisional level and Group level
* Identified key roles
* Timeline and delivery plan established to provide
Group with both soft skills training to prepare
colleagues for change in addition to specific
technical training to manage changes brought about by
the delivery of the new technology platform. This is
being managed in-house and bolstered by the
appointment of an external training partner
------------------------------------------------------------------------
Third Parties (Risk movement in the year: no
risk movement)
------------------------------------------------------------------------
The risk of loss as a result of reliance on
third parties carrying out core business activities.
Risk categories:
* Operational
* Compliance and regulatory
* Reputational
Risk appetite
Worldpay is willing to accept the risk of working
with third parties for core business activities.
However, contracts and relationships with critical
suppliers must be well-monitored, value for
money and regularly reviewed. In addition, regulatory
requirements relating to sourcing must be met.
Risk indicators
* Number of breaches of the Supplier Management Policy
* Performance of core suppliers against agreed service
levels
* Issues identified in quarterly service reviews with
the business and suppliers
Potential impacts
* Suppliers critical to Worldpay's success are unable
to meet the capability and service levels required
* Non-compliance with legal or regulatory requirements
relating to supplier management
* Inconsistent and/or undesirable approach to the
sourcing and management of key suppliers resulting in
poor relationships and poor levels of service
Mitigants
* Dedicated Strategic Supplier Management team
maintains oversight of Worldpay's portfolio of
suppliers
* The in-house legal team is involved in all
contractual discussions and Worldpay establishes
legally binding contracts with its suppliers
* When potential 'Important Outsourced
Functions/Managed Supply' engagements are identified
Regulatory Compliance is engaged
* We regularly monitor performance of core suppliers
against agreed service levels
Actions in 2016
* Created a centralised contracts database
* Contracts renegotiated, on service levels and terms
and conditions, with strategically significant
suppliers
* Engaged Strategic Supplier Management and Procurement
in all Worldpay sourcing activity
* Sourcing regulatory requirements identified and
communicated
* Supplier Security Risk reviews undertaken by
Enterprise Security
------------------------------------------------------------------------
People (new risk)
------------------------------------------------------------------------
Worldpay fails to sufficiently recruit, retain
and develop its people leading to poor colleague
engagement and the inability to create a high-performing
culture.
Risk categories:
* Strategic and business
* Operational
* Reputational
Risk appetite
We seek to create a great place to work, powered
by great people. We balance the costs and risk
to ensure that our colleagues are engaged and
have the capability to deliver our strategy.
Risk indicators
* Annual attrition rates
* Leavers with less than one year of service
* Colleague engagement scores
* Leadership stability
* Succession cover
* Single point of failure risk
* Internal promotion rates
* Labour cost changes
Potential impacts
* Colleague capability does not meet the needs of the
organisation
* Poor culture leading to ineffective performance and
inappropriate behaviours
* Low colleague engagement leading to increased
attrition
* Unable to retain colleagues and potential loss of key
single points of failure
Mitigants
* Worldpay has established a common set of values and
behaviours known as the 'Worldpay Way'
* Candidates are subject to thorough recruitment
processes by trained recruiters
* Group annual engagement survey used as a tool to
monitor engagement
* Annual mandatory regulatory training for all
colleagues
* Leadership training
Actions in 2016
* Introduction of the Worldpay Academy to provide
better access to training and encourage colleague
development
* Continued embedding of the 'Worldpay Way' values
* Continuation of the colleague engagement survey
* Introduction of a Save As You Earn scheme for
colleagues in the UK and an Employee Stock Purchase
Plan for those in the US
------------------------------------------------------------------------
Competitive landscape (new risk)
------------------------------------------------------------------------
The risk that competitors move faster than Worldpay
or the industry consolidates, leading to lower
margins and loss of customers.
Risk categories:
* Strategic and business
* Market
Risk appetite
We have no appetite to lose our competitive
position.
Risk indicators
* Market developments versus Worldpay product offerings
* Developments in the payments industry against the
development activities underway in Worldpay
* Customer feedback from sales opportunities on
Worldpay offering and positioning
* Market announcements from competitors
Potential impacts
* New players disintermediate Worldpay
* Loss of customers because competitors innovate and
develop new enhanced products
* Pricing and margin pressure
Mitigants
* Market Trends and Disintermediation Framework
* Each Business Unit has a dedicated product
development team to identify customer needs
* Innovation team evaluates technology trends
* Group and Business Unit M&A strategies
Actions in 2016
* A new Strategy team has been created whose objectives
include the monitoring of the payments industry and
technology trends
------------------------------------------------------------------------
Related Parties and Related Party Transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures, the Directors and any other entities over which the Directors have significant influence.
The related party transactions between the joint venture and associate all arose in the normal course of business and are conducted on an arm's length basis. A list of the Group's subsidiaries is in Note 6a and details of the joint venture and associate are in Note 6b.
There are no related party transactions with the Directors outside of their employment by the Group.
Key management
The Group's policy is for its subsidiary undertakings to bear the costs of their full time staff. The Group also recharges subsidiaries for management fees which include an allocation of certain staff and administrative support costs.
Key management comprises the Directors of Worldpay Group plc. The emoluments of the Directors are met by the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSUORNRBOASRAR
(END) Dow Jones Newswires
April 04, 2017 03:59 ET (07:59 GMT)
1 Year Worldpay Chart |
1 Month Worldpay Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
