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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Balfour Beatty Plc | LSE:BBY | London | Ordinary Share | GB0000961622 | ORD 50P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.20 | -0.06% | 361.20 | 362.00 | 362.20 | 366.40 | 360.60 | 360.60 | 1,230,600 | 16:35:15 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Engineering Services | 9.6B | 197M | 0.3628 | 9.98 | 1.97B |
From Apr 2019 to Apr 2024
TIDMBBY
RNS Number : 6301J
Balfour Beatty PLC
03 April 2018
Balfour Beatty plc
LEI: CT4UIJ3TUKGYYHMENQ17
Balfour Beatty plc Annual Report and Accounts 2017, Notice of 2018 Annual General Meeting and Class Meeting of Preference Shareholders, Forms of Proxy and Notice of availability of documents
Copies of the following documents, which are being posted to shareholders today, have been submitted to the UK Listing Authority ("the UKLA"), and will shortly be available for inspection at the UKLA's Document Viewing Facility, via the National Storage Mechanism, which is located at www.morningstar.co.uk/uk/NSM:
-- The Company's Annual Report and Accounts for the year ended 31 December 2017 ("Annual Report 2017");
-- The Notice of 2018 Annual General Meeting ("AGM") and Class Meeting of Preference Shareholders ("Class Meeting");
-- Forms of Proxy for AGM and Class Meeting (versions for shareholders who have elected to continue to receive paper copies of the Company's Annual Report and Accounts, and either request a paper proxy form or have elected to continue to receive one);
-- Forms of Proxy for AGM and Class Meeting (versions for shareholders who have not elected to continue to receive paper copies of the Company's Annual Report and Accounts, and either request a paper proxy form or have elected to continue to receive one); and
-- Notice of availability of the Annual Report 2017 and the Notice of AGM and Class Meeting.
Copies of the Annual Report 2017 and Notice of AGM and Class Meeting will also shortly be available to view on the Company's website, www.balfourbeatty.com.
The Independent Auditor's Report on the financial statements of the Company for the year ended 31 December 2017, which comprise the Group Income Statement, Group Statement of Comprehensive Income, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group and Company Balance Sheets, Group Statement of Cash Flows, and the related Notes 1 to 41, is set out in full on page 88 of the Annual Report 2017.
A condensed set of financial statements were appended to the Company's full year results announcement issued on 14 March 2018, which included an indication of important events that occurred during the year. That information, together with the information set out below regarding a description of the principal risks and uncertainties, related party transactions and a responsibility statement, which is extracted from the Annual Report 2017, constitute regulated information, which is to be communicated to the media in full unedited text through a Regulatory Information Service in accordance with Rule 6.3.5R of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Page and note references in the text below refer to page numbers in the Annual Report 2017.
This material should be read in conjunction with, and is not a substitute for, the full Annual Report 2017.
Principal risks
Understanding our risk profile
Understanding Balfour Beatty's risk profile and establishing the most effective way to manage, accept or transfer risk is central to the Group's decision-making process. As such, the Board has made a robust assessment of the principal risks which the Group faces, the controls in place to remove or mitigate these risks and also whether these risks represent new, increased or decreased threats.
The Group recognises that its risk profile comprises interlinked and discrete risks. The principal risks as set out below should therefore be considered alongside the viability statement on page 57 and the discussion on financial risk factors and going concern on page 47.
Hot Features
Premium
Health and safety Risk: Increased
Owner: Safety and Sustainability
Committee
Build to Last pillar: Safe
---------------------------------- ----------------------------------------------
Risk description What impact it might have
The Group works on significant, Failure to manage these risks
complex and potentially gives the potential for significant
hazardous projects which harm to, or even the death of,
require continuous monitoring employees, subcontractor staff
and management of health or members of the public, as
and safety risks. well as the potential for criminal
Causes prosecutions, significant fines,
Some common themes where debarment and reputational damage.
health and safety risks How it is mitigated
could arise are recognised Balfour Beatty has detailed
and communicated, including: health and safety policies,
risk identification/assessment procedures and initiatives to
processes that fail minimise such risks. These are
to deliver risk elimination reviewed and monitored by management
or mitigation and external verification bodies.
failure in safety leadership Each business has experienced
management of subcontractors health and safety professionals
not briefing people in place who provide advice
properly before setting and support and undertake regular
them to work reviews.
failure to follow procedures The Safety and Sustainability
ongoing change programme Committee of the Board, as well
and performance pressures, as business-level Health and
which may have an effect Safety executive leadership
on people and their teams, meet regularly throughout
ability to remain focused the year to develop a consistent
on health and safety approach to health and safety
risks. best practice.
Training programmes (including
behavioural) are in place.
Zero Harm action plans continue
to be implemented and monitored.
Risk movement
Lagging performance indicators
continue to improve however
the upper limits for fines and
scope for prosecution have increased.
---------------------------------- ----------------------------------------------
Work winning Risk: No change
Owner: Group Tender and Investment
Committee
Build to Last pillar: Trusted
---------------------------------- ----------------------------------------------
Risk description What impact it might have
Failure to identify, Failure to estimate accurately
price, and execute the the risks, costs versus scope,
right volume and quality time to complete, impact of
of bids and investment inflation and exchange rates,
opportunities to maintain and failure to understand specification
a profitable, sustainable changes and contractual terms
order book and deliver and how best to manage them
value to stakeholders. could cause financial losses.
Causes In the event of disagreement
Inaccuracy in: with, failure of, or poor delivery
assumptions behind investment performance by a joint venture
decisions partner, the Group could face
costs versus scope and financial and reputational risks.
time calculations If any of the assumptions behind
project programme and investment decisions prove incorrect,
task duration estimates the profitability of those investments
design and specifications could be reduced.
not fully developed How it is mitigated
or understood Consistent and shared policies
assessment of the impact and minimum commercial expectations
of inflation and exchange including acceptable margins.
rates A wide and ongoing range of
contract management training initiatives across
negotiation of terms all disciplines within the Group
and conditions including Cash is our Compass
assessment of customers' and High Value Selling to drive
liquidity/creditworthiness increased commercial awareness
assessment of joint and an understanding of expectations
venture partners or on margins and cost.
supply chain. All bids are subject to rigorous
estimating and tendering processes
as part of the gateway review
process.
Commercial/contractual reviews
are conducted by key commercial
and legal staff.
Defined delegated authority
levels are in place for approving
all tenders and infrastructure
investments.
Reviews are conducted following
all tenders to ensure lessons
are learnt, captured and applied
to future tenders.
Before entering into a joint
venture agreement, the Group
reviews the relevant skills,
experience, resources and values
of joint venture partners to
understand how they complement
its own.
Investment appraisals are performed
and reviewed by experienced
professionals. The Group analyses
the risks associated with revenues
and costs and, where appropriate,
establishes contractual and
other risk mitigations.
---------------------------------- ----------------------------------------------
Project execution Risk: No change
Owner: Group management
Build to Last pillar: Trusted
---------------------------------- ----------------------------------------------
Risk description What impact it might have
Failure to deliver projects Failure to manage or deliver
at the required specification against contracted customer
on time and on budget requirements on time, on budget
to meet the expectations and to an appropriate quality
of customers and minimise could result in issues such
the risk of delay-related as contract disputes, rejected
damages and defect liabilities. claims, design issues, liquidated
Causes damages, cost overruns, failure
Failure to implement, to achieve customer savings
maintain and challenge and costs to rectify defective
operational and commercial work - which in turn harm Balfour
controls (as detailed Beatty's profitability and reputation.
within checklists at The Group may also be exposed
Gate reviews (4-6)) to long-term obligations including
allowing: litigation and costs to rectify
unrealistic programming defective or unsafe work.
targets Execution failure on a high-profile
non-availability of project could result in significant
specialist resource reputational damage and costs.
unrealistic progress How it is mitigated
assessments and cost An increased focus on identifying
to complete judgements and reporting risks, including
overly-optimistic claim the accuracy of cost and cash
recovery assumptions forecasting.
incomplete visibility Consistent application of strong
and appreciation of commercial management and contract
scale of commercial administration processes.
judgements Targeted recruitment of key
inaccurate and/or incomplete staff within project delivery
cost and value data teams and senior management,
or failure to analyse together with ongoing and focused
and report correctly, training of staff via the Balfour
which could arise due Beatty Academy.
to poor training, lack Ongoing project resource reviews.
of supervision, lack Gateway process embedded within
of accountability or each business and held on the
fear of reporting bad Business Management System to
news increase accuracy and consistency
failings in administering within work winning and project
the contract terms to delivery.
safeguard or protect Site Mobilisation Hub in place
future claims, change to facilitate early and effective
and extensions of time start-up on site.
(EOTs). Use of innovative and cost effective
engineering and technical solutions.
Planning and programming is
undertaken to mitigate unforeseen
events and changes.
Drive for defect-free delivery
is being embedded at all levels.
Professional indemnity cover
in place to provide further
financial safeguards.
Balfour Beatty monitors the
performance of joint ventures,
joint venture partners, subcontractors
and suppliers throughout the
lifecycle of a project.
---------------------------------- ----------------------------------------------
Data governance and Risk: Increased
cyber security Owner: Group management
Build to Last pillar: Trusted
---------------------------------- ----------------------------------------------
Risk description What impact it might have
Breach of the Data Protection Crystallisation of this risk
Act or the General Data has the potential for:
Protection Regulation the business facing legal proceedings,
(GDPR) and/or key company investigations or disputes resulting
data or other confidential in business disruption, losses,
information is lost, fines and penalties and reputational
stolen or compromised. damage
Causes a reduction or loss of competitive
Failure to correctly advantage (including loss of
assess and prepare for: intellectual property)
the new GDPR a negative impact on customer
the ongoing threat of relationships, including loss
cybercrime of confidence
malicious intent and/or exclusion from bidding opportunities.
targeted attack How it is mitigated
breakdown of key security Data Protection Officers embedded
software or management throughout the businesses to
system. ensure breaches are reported
promptly and risks are appropriately
escalated to the Group Data
Protection Officer for consideration
and assessment.
Data protection programme covering
policies, procedures and approved
access levels in place alongside
a comprehensive training plan.
The Group's exposure has been
reduced via a significant reduction
in approved suppliers.
All data is stored in secure
data centres with strengthened
back-up procedures.
Regular review and communication
of the ever-changing cyber threats
and how they manifest themselves
in practical guidance that all
employees and contractors understand.
Use of up-to-date anti-viral
software and increased patching
of key software.
All employees are trained in
and must comply with information
security management obligations.
Risk movement
The potential risk exposure
has increased as a result of
the higher level of fines which
will be enforceable under The
General Data Protection Regulation.
---------------------------------- ----------------------------------------------
Uncertainty within our Risk: No change
economic environment Owner: The Board
Build to Last pillar: Expert
---------------------------------- ----------------------------------------------
Risk description What impact it might have
The effects of national Any significant changes in the
or market trends, political level or timing of customer
or regulatory change spending or investment plans
(including the UK's could adversely impact the Group's
exit from the EU and strategy, business model, revenue
the change of administration or profitability in the short
in the US), or new developments or medium term.
in infrastructure expenditure Restrictions to the availability
or procurement may cause of skilled labour and competitively
customers to re--evaluate priced materials will lead to
existing or future projects. a loss of competitive advantage
Causes and a devaluation of the business.
Failure to plan for Financial failure of a customer,
any potentially negative including any government or
impacts, or to capture public sector body, could result
any opportunities that in not collecting amounts owed.
may be presented could How it is mitigated
lead to: The Group's strategy to focus
customers postponing, on the more resilient and stable
reducing or changing infrastructure markets and geographies
expenditure plans will help mitigate this risk.
wider than expected The effect of spending changes
fluctuations in inflation in any one market is mitigated
increased competition by the Group's broad exposure
(eg in the UK from foreign to infrastructure markets and
investors acquiring the continued need for infrastructure
competitors) spending. Balfour Beatty also
increased supply chain mitigates the effects of such
risks (eg solvency, market conditions by continuing
people and materials) to adapt its business model.
reduced revenue or pressure The Group is actively monitoring
on margins. the potential impacts of the
UK exiting the EU including
potential market stimulation
by the UK Government, freedom
of movement, finance costs,
exchange rates and commodity
prices. A dedicated Group-wide
forum is in place for this purpose
and issues a Brexit position
paper for external audiences
which is updated every second
month.
The financial solvency and strength
of counterparties is always
considered before contracts
are signed and such assessments
are updated and reviewed whenever
possible during the project
lifecycle. The business also
seeks to ensure that it is not
over-reliant on any one counterparty.
---------------------------------- ----------------------------------------------
People Risk: No change
Owner: The Board
Build to Last pillar: Expert
---------------------------------- ----------------------------------------------
Risk description What impact it might have
Inability to attract Failure to recruit and retain
and retain required appropriately skilled people
levels of skilled and could harm the Group's ability
competent staff to meet to win or perform specific contracts,
the Group's objectives. grow its business and meet its
Causes strategic objectives.
Perceived limitations A high level of staff turnover
to internal career development or low employee engagement could
Lack of recognition result in a drop in confidence
and reward in the business within the market,
Failure of businesses customer relationships being
to promote good news lost and an inability to focus
stories on business improvements.
Failure to maintain How it is mitigated
a culture of pride in The Balfour Beatty Academy has
the workplace been established in the UK to
Lack of a diverse workforce provide professional development
Restrictions in the and knowledge sharing opportunities
availability of skilled and to ensure employees feel
labour. valued and specialisms are recognised.
Regular reviews of remuneration
arrangements to ensure they
are appropriate to help the
Group attract, motivate and
retain key employees.
Strong employee communication
channels are in place celebrating
individual, business and Group-level
successes.
An annual Group-wide employee
engagement survey is undertaken
to measure engagement and appropriate
actions are developed and communicated.
Recruitment and retention rates
are measured and regularly reviewed
across all parts of the business.
Affinity networks have been
established to create a diverse
and inclusive working environment.
Emerging talent is supported
via a range of graduate, apprenticeship,
trainee and industrial placement/internship
schemes including The 5% Club
(see page 32).
Competency frameworks within
core job families identify and
support the development of key
knowledge, skills and expertise.
The talent review process focuses
on succession and the talent
pipeline is supported by various
development initiatives across
the Group.
---------------------------------- ----------------------------------------------
Realising the transformation Risk: No change
programme Owner: The Board
Build to Last pillar: All
---------------------------------- ----------------------------------------------
Risk description What impact it might have
The momentum gained Failure to capture fully the
via the policies, process, benefits of Build to Last could
and practices of Build result in the Group's ability
to Last is not maintained to deliver sustained profit
and potential benefits being jeopardised.
are not realised. How it is mitigated
Causes Ensuring Build to Last continues
To enable the transformation to deliver the Group's standard
programme to succeed, operating procedures is a strategic
a culture of adhering priority for the Group and is
to the Build to Last being led by the Group Chief
principles must be continued Executive.
and enhanced. Controls include:
Failing to grow this continuing to embed the Build
culture could result to Last culture within each
from: business unit
ineffective communication senior leadership communication
inadequate resourcing across the businesses is clear
(financial, physical and frequent
and people) new systems and processes are
complacency within core deployed with training plans
disciplines and in agreed phases
new systems and processes employee surveys form a key
being used without appropriate part of the programme
controls being in place leaders throughout the business
and/or tested. frequently monitor the delivery
and impacts of the programme
senior leadership is well experienced
in delivering business transformation
successfully.
---------------------------------- ----------------------------------------------
Financial strength Risk: No change
Owner: The Board
Build to Last pillar: Trusted
---------------------------------- ----------------------------------------------
Risk description What impact it might have
Inability of the Group Failure to deliver effectively
to maintain the financial the required financial strength
strength required to will mean the Group:
operate its business fails to meet financial covenant
and deliver its objectives. tests, as set out in its financing
Causes facility agreements, that would
Failure to manage financial lead to an event of default
risks, including forecasting if not remedied within a specific
material exposures, grace period
and the financial resources fails to pass the required tests
of the Group that underpin that allow it to continue to
its ability to: adopt the going concern basis
meet ongoing liquidity of preparing the financial statements
obligations so that loses the ability to compete
it remains a going concern for key long-term contracts
meet financial covenants that are critical to the delivery
as set out in financing of its long-term objectives
facility agreements and viability.
maintain the confidence How it is mitigated
of customers and key The Group operates with a centralised
markets and therefore treasury function that is responsible
continue to win long-term for managing key financial risks,
contracts. cash resources and the availability
of liquidity and credit capacity.
The Group maintains significant
undrawn term committed bank
facilities with a banking group
of high credit-quality to underpin
the liquidity requirements of
the Group.
The Group maintains significant
bank and surety bonding facilities
to deliver trade finance requirements
of the Group on an ongoing basis.
The Group operates standardised
reporting, forecasting and budgeting
financial processes. This allows
monitoring of the impact of
business decisions on financial
performance over future time
horizons.
---------------------------------- ----------------------------------------------
Supply chain Risk: Decreased
Owner: Group management
Build to Last pillar: Lean
---------------------------------- ----------------------------------------------
Risk description What impact it might have
Supply chain partners Failure of a subcontractor or
are not able to meet supplier would result in the
the Group's operational Group having to find a replacement
expectations and requirements or undertaking the task itself.
including availability, This could result in delays,
financial stability, additional costs or a reduction
technical ability, quality, in quality owing to lack of
safety, environmental, expertise.
social and ethical. Mistreatment of suppliers, subcontractors
Causes and their staff, or poor ethical
Supply chain failure standards in the supply chain,
risk, exacerbated during, could lead to legal proceedings,
and when emerging from, investigations or disputes resulting
tough economic conditions in business disruption, losses,
Over-reliance on a limited fines and penalties, reputational
number of suppliers damage and debarment.
Retention of subcontracted How it is mitigated
parties in buoyant markets The Group aims to develop long-term
Inadequate assessment relationships with key subcontractors,
of supply chain partner working closely with them to
capabilities and process understand their operations
(including safety, ethics, and dependencies.
quality, material stewardship, Contingency plans in place to
child labour, forced address subcontractor failure
labour and modern slavery) including replacement supplier
Failure to accurately list.
assess project resource Lessons are learnt from supply
requirements and key chain performance.
deliverables All UK trade suppliers and subcontractors
Unethical treatment are assessed using the Constructionline
of the supply chain. service that collects, assesses
and monitors standard company
information through a question
set aligned to PAS 91, the industry-standard
pre-qualification questionnaire.
The risk management framework
and the gateway review process
allow for early (Gates 1-4)
and ongoing (Gate 6) assessment
of the appropriateness of resource
allocation and dependencies.
My Contribution programme generates
ideas for more effective procurement
and resourcing.
The Group obtains project retentions,
bonds and/or letters of credit
from subcontractors, where appropriate
to mitigate the impact of any
insolvency.
Key supplier audits within projects
to ensure they are in a position
to deliver consistently against
requirements.
Group-wide Code of Conduct and
Supplier Code of Conduct, and
related policies and procedures
in place.
Risk movement
Increased rigour in the pre-qualification
processes, consolidation of
the supply chain and improved
monitoring of supplier performance.
---------------------------------- ----------------------------------------------
Business conduct/compliance Risk: No change
Owner: The Board
Build to Last pillar: Trusted
---------------------------------- ----------------------------------------------
Risk description What impact it might have
The Group operates in Failure by the Group, or employees
various markets that and third parties acting on
present business conduct-related its behalf or in partnership,
risks involving fraud, to observe the highest standards
bribery or corruption, of integrity and conduct could
whether by its own staff result in legal proceedings
or via third parties (including prosecution under
such as agents, partners the UK Bribery Act), investigations
or subcontractors. Those or disputes resulting in business
risks are higher in disruption, losses, fines and
some countries and sectors. penalties, reputational damage
Overall, the construction and debarment.
industry has a higher How it is mitigated
risk profile than other The Business Integrity function
industries. promotes, monitors, assesses
Causes awareness of and provides training
Corruption on, the Code of Conduct. The
Bribery function provides reports to
Fraud, deception, false the Audit and Risk Committee
claims or false accounting and has the full support of
Unfair competition the Board.
Human rights abuses, Each business unit, supported
such as child and other by the Business Integrity function,
labour standards generally, is responsible for embedding
illegal workers, human the Code of Conduct.
trafficking and modern The Group has a range of risk
slavery assessment, due diligence and
Unethical treatment procurement controls that are
of and by the supply designed to identify and manage
chain risks with third parties.
Risk of ethics and values Independent third-party whistleblowing
being compromised as hotline and dedicated email
a result of commercial are in place and actively promoted.
pressures All in-scope complaints are
Other emerging ethical independently investigated by
risks. the Business Integrity function
and appropriate action is taken,
where necessary.
Balfour Beatty works with a
limited number of agents, all
of whom undergo a due diligence
and approval process.
---------------------------------- ----------------------------------------------
Legal and regulatory Risk: No change
Owner: The Board
Build to Last pillar: Trusted
---------------------------------- ----------------------------------------------
Risk description What impact it might have
The Group does not comply The business could face legal
with all legal, tax proceedings, investigations
and regulatory requirements. or disputes resulting in business
Causes disruption, losses, fines and
A failure to recognise penalties, reputational damage
or adapt to changes and exclusion from bidding.
in applicable laws affecting Such action could also impact
the Group's businesses. upon the valuation of assets
Such changes may include: within that territory.
obligations as a result How it is mitigated
of government/regulatory The Group monitors and responds
enquiry and enforcement to tax, legal and regulatory
actions developments and requirements
adverse changes of law, in the territories in which
including changes to it operates.
tax law Local legal and regulatory frameworks
local procurement laws are considered as part of any
exclusion from bidding decision to conduct business
or blacklisting. in a new country.
Appropriate and responsive policies,
procedures, training and risk
management processes are in
place throughout the business.
---------------------------------- ----------------------------------------------
Legacy pension liabilities Risk: No change
Owner: The Board
Build to Last pillar: Lean
---------------------------------- ----------------------------------------------
Risk description What impact it might have
The Group is exposed Failure to manage these risks
to significant defined adequately could lead to the
benefit pension risks. Group being exposed to significant
Causes additional liabilities due to
The Group is unable increased pension deficits.
to ensure that the trustees How it is mitigated
of the pension funds The Group constructively engages
react effectively to with the trustees of the pension
or manage: funds to ensure that they are
changes in interest taking appropriate advice and
rates the funds' assets and liabilities
inflation or life expectancy are being managed appropriately.
trends The Group's main UK fund has
intervention by regulators hedged in excess of 80% of its
or legislators exposure to interest rate and
investment performance inflation movements.
of the funds' assets.
---------------------------------- ----------------------------------------------
More generally and in addition to its principal risks Balfour Beatty faces significant risks and uncertainties that are common to many companies - including financial and treasury, communications and marketing, wider information security, business continuity and crisis management, and hazard risks.
"36 Related party transactions
Joint ventures and associates
The Group has contracted with, provided services to, and received management fees from, certain joint ventures and associates amounting to GBP279m (2016: GBP344m). These transactions occurred in the normal course of business at market rates and terms. In addition, the Group procured equipment and labour on behalf of certain joint ventures and associates which were recharged at cost with no mark-up. The amounts due from or to joint ventures and associates at the reporting date are disclosed in Notes 23 and 24 respectively.
Transactions with non-Group members
The Group also entered into transactions and had amounts outstanding with related parties which are not members of the Group as set out below. These companies were related parties as they are controlled or jointly controlled by a non-executive director of Balfour Beatty plc.
2017 2016
GBPm GBPm
========================= ====== ======
Anglian Water Group
Ltd
Sale of goods & services 18 13
Amounts owed by related
parties 3 -
URENCO Ltd
Sale of goods & services 72 62
Amounts owed by related
parties - 5
------------------------- ------ ------
All transactions with these related parties were conducted on normal commercial terms, equivalent to those conducted with external parties. The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No expense has been recognised in the period for bad or doubtful debts in respect of the amounts owed by related parties.
Compensation of key management personnel of the Company
2017 2016
GBPm GBPm
===================== ====== ======
Short-term benefits 2.938 2.384
Share-based payments 2.584 1.612
--------------------- ------ ------
5.522 3.996
--------------------- ------ ------
Key management personnel comprise the executive Directors who are directly responsible for the Group's activities and the non-executive Directors. The compensation included above is in respect of the period of the year during which the individuals were Directors. Further details of Directors' emoluments, post-employment benefits and interests are set out in the 2017 Remuneration report on pages 76 to 87."
"Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report and the Group and Company financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and Company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs as adopted by the EU) and applicable law and have elected to prepare the 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 Company and of their profit or loss for that period. In preparing each of the Group and Company financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently
- make judgements and estimates that are reasonable, relevant, reliable and prudent
- for the Group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU
- for the Company financial statements, state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the Company financial statements
- assess the Group and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern
- use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and 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 comply 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.
The Directors confirm that to the best of their 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
- the Strategic Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
In light of the work undertaken by the Audit and Risk Committee reported in greater detail on pages 67 to 69 and the internal verification and approval process which has been followed this year, the Directors are able to state that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position, performance, business model and strategy.
Statements of Directors as to disclosure of information to auditors
Each of the Directors at the date of approval of this report confirms that:
- so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware
- the Director has taken all the steps that he or she ought to have taken as a Director to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.
By order of the Board
David Mercer
General Counsel and Company Secretary
13 March 2018
Registered Office:
5 Churchill Place, Canary Wharf
London E14 5HU
Registered in England Number 395826"
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSEAELDEDEPEFF
(END) Dow Jones Newswires
April 03, 2018 06:36 ET (10:36 GMT)
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