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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Euromoney Institutional Investor Plc | LSE:ERM | London | Ordinary Share | GB0006886666 | ORD 0.25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1,460.00 | 1,458.00 | 1,460.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMERM
RNS Number : 1748L
Euromoney Institutional InvestorPLC
20 December 2018
EUROMONEY INSTITUTIONAL INVESTOR PLC
ANNUAL REPORT AND ACCOUNTS 2018 AND
NOTICE OF ANNUAL GENERAL MEETING 2019
20 December 2018
Euromoney Institutional Investor PLC ("Euromoney") the international business information and events group, has published the following documents on its website www.euromoneyplc.com:
Document Location Annual Report and Accounts 2018 www.euromoneyplc.com/investor-relations/reports-and-presentations ----------------------------------------------------------------------------- Notice of Annual General Meeting www.euromoneyplc.com/investor-relations/shareholder-services/agm-information 2019 -----------------------------------------------------------------------------
The Annual Report and Accounts 2018, together with the Notice of Annual General Meeting 2019 and Form of Proxy have been posted or otherwise made available to shareholders. These documents have been uploaded to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.
The Company's Annual General Meeting 2019 is scheduled to be held at 9.30am on 1 February 2019 at 8 Bouverie Street, London, EC4Y 8AX.
The information set out below, which is extracted from the Annual Report and Accounts 2018, is provided solely for the purpose of complying with DTR 6.3.5R. The information should be read in conjunction with the Preliminary Statement announcement made on 22 November 2018.
Statement of Directors' responsibilities in respect of the Financial Statements
The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulation. Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have prepared the Group Financial Statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and Company Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). 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 the profit or loss of the Group and Company for that period. In preparing the Financial Statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently
-- state whether applicable IFRSs as adopted by the European Union have been followed for the Group Financial Statements and United Kingdom Accounting Standards, comprising FRS 102, have been followed for the Company Financial Statements, subject to any material departures disclosed and explained in the Financial Statements
-- make judgements and accounting estimates that are reasonable and prudent and
-- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business
The Directors are also responsible for safeguarding the assets of the Group and Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the Financial Statements and the Directors' Remuneration Report comply with the Companies Act 2006 and, as regards the Group Financial Statements, Article 4 of the IAS Regulation.
The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.
Each of the Directors confirm that to the best of their knowledge:
-- the Company's Financial Statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company
-- the Group Financial Statements, which have been prepared in accordance with IFRSs as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position, profit and cash flows of the Group and
-- the Strategic Report and the Directors' Report includes a fair review of the development and performance of the business and the position of the Group and Company, together with a
description of the principal risks and uncertainties that it faces.
Principal risks and uncertainties
The principal risks and uncertainties the Group faces vary across its different businesses. Management of significant risk is the responsibility of the Board and during the year was overseen by the Risk Committee. For the year ahead, the Risk Committee will continue to operate as a management committee, reporting into our reconstituted Audit and Risk Committee which will result in management providing the Board with a more regular and detailed review of the management of the Group's principal risks. In tandem with this, the Group plans to review the controls in place across the business and update its risk management framework. The Group's principal risks and uncertainties are summarised below.
Downturn in key geographic region or market sector (cyclical downturn)
Key factors Mitigation Risk appetite Risk tolerant * Concentration of customers in financial services * The Group actively manages cyclical risk through its Prior years sector makes this exposure acute strategic framework (relative position) 2017: Risk * Global economic and geopolitical risk has further * The Group continues to carry out tolerant increased this year driven by continuing uncertainty 2016: Risk in the UK and Europe over the UK's EU exit and the tolerant increasingly protectionist trade policies of the US comprehensive risk 2015: Risk and China reviews of its asset tolerant management businesses resulting in Post-mitigation * Headwinds in the asset management detailed mitigation risk plans for each business trend and continuous tracking market including the of effective risk This risk is shift towards passive management increasing portfolio management, * A significant restructuring exercise has new technologies and Description of the impact of MiFID risk II continue to affect been carried out to change clients in the sector 'right-size' our BCA and NDR businesses Global economic and ensure focus on and core products geopolitical * The Group operates in many geographical markets uncertainty is increasing following * Some diversification in sector mix the US
election, US and Chinese * Ability to cut some costs temporarily and quickly protectionism, limited progress of the UK's EU exit negotiations and disruption in a sector with concentrated Group revenues -------------------------------------------------------------- ---------------- Board's view There are limited options to mitigate impact of a significant cyclical downturn in the short and medium term. The residual risk will remain high. The Board also wishes to continue to serve the Asset Management segment because it considers it to be sufficiently attractive over the medium term.
Product and market transformation/disruption (structural change)
Key factors Mitigation Risk appetite Risk tolerant * Competition from existing competitors, new disruptive * Strategy designed to appraise and evaluate structural Prior years players and new entrants risks and respond to them, taking advantage of (relative opportunities where identified position) 2017: Risk * New technologies change how customers access and use tolerant our products * Regular CEO-led reviews across all divisions 2016: Risk tolerant 2015: Risk * Changing demographics can affect customer needs and * Entrepreneurial approach tolerant opportunities Post- * Effective management reporting with regular forecast mitigation risk * Structural pressure on customer business models will reviews trend affect demand for the Group's products and services, particularly in financial services This risk is * Portfolio spreads risk to some degree unchanged * Regulations such as MiFID II creating both challenges Description of and opportunities in asset management sector * Portfolio management allows the Group to sell risk structurally challenged businesses and to buy change structurally strong ones * Free content available via the internet increases the As an threat to paid subscription model entrepreneurial * Cyclical review of divisional activities by the Risk business, the Committee Group * Lower barriers to entry for new entrants is experienced at managing this * Not acquiring the types of assets that the Group's risk strategy requires ------------------------------------------------------------ ---------------- Board's view Controls are in place but exposure to this risk will remain moderate.
Exposure to US dollar exchange rate
Key factors Mitigation Risk appetite Risk tolerant * Approximately two-thirds of revenues and profits are * US dollar forward contracts are used to hedge 80% of generated in US dollars, including approximately 40% UK based US dollar revenues for the coming 12 months Prior years of the revenues in the UK-based businesses. This and 50% of these revenues for a further six months (relative gives significant exposure to movements in the US position) dollar for both UK revenues and the translation of 2017: Risk results of foreign subsidiaries * Exposure from the translation of US tolerant dollar-denominated earnings is not directly hedged 2016: Risk but is partially offset by US dollar costs and the tolerant * A significant strengthening of sterling against the use of US dollar-denominated debt when debt is 2015: Risk US dollar could reduce profits and dividends required tolerant Post-mitigation * The Group also undertakes transactions in many other * Sensitivity analysis is performed regularly to assess risk currencies, although none currently provides a the impact of currency risk and is reviewed by the trend significant risk to the results Tax & Treasury Committee This risk is unchanged * The UK's exit from the EU may result in * Given heightened volatility, the Group Description of risk significant currency hedging strategy is change fluctuations depending under frequent review on the terms of the and includes regular The Group is exit impact analysis of experienced various exchange rate at managing scenarios together risks
with internal risk related to its mitigations such as exposure natural hedging of to the US non-sterling earnings dollar and this risk remains unchanged -------------------------------------------------------------- ---------------- Board's view Although the Group considers this risk unchanged, the increased volatility and uncertainty of sterling against the US dollar after the UK's exit from the EU is expected to continue for some time.
Information security breach resulting in challenge to data integrity
Key factors Mitigation Risk appetite Risk averse * Integrity of data products is fundamental to the * Governance provided by Risk Committee and Information Prior years success of the business Security Steering Group (relative position) 2017: Risk * The Group relies on large quantities of data * Approved information security standards and policies averse including customer, employee and commercial data which are reviewed on a regular basis 2016: Risk averse 2015: Risk * Increasing number of cyber-attacks affecting * Continuing education and awareness programmes for all neutral organisations globally staff Post-mitigation risk trend * The Group has many websites and is reliant on * Active information security programme (including distributed technology, increasing exposure to access management and cyber-resilience planning) to This risk is threats align all parts of the Group with its information increasing security standards Description of * A successful cyber-attack could cause considerable risk disruption to business operations, lost revenue, * Crisis management and business continuity frameworks change regulatory fines and reputational damage cover all businesses including disaster recovery planning for IT systems Most industry information * The EU General Data Protection Regulation increases security regulatory scrutiny and penalties * Multi-layered defence strategy analysts agree that this risk is * Technological innovations in mobile working, * New, more robust IT security due diligence framework increasing and cloud-based technologies and social media introduce for acquisitions warn new information security risks that companies will continue * Access to key systems and data is restricted, to face * Threats such as ransomware and monitored and logged with auditable data trails in more regular place and sophisticated cryptomining require cyber-attacks the Group to adapt * Comprehensive backups for IT infrastructure, systems to a continually shifting and business data landscape * Phishing remains one of the most serious threats to network security * Increase in number of dedicated IT security roles in Central Technology * Professional indemnity insurance provides cover for cyber risks including cyber-attack and data breach incidents * Information security is reviewed as part of our internal audit process * Regular information security training for employees, contractors and freelancers * Incident response playbook ------------------------------------------------------------ ---------------- Board's view The use of technology creates this inherent risk. The Group strives to balance the need to innovate through the use of technology while responsibly managing risk, including through the use of third party expertise. Controls to prevent an information security breach or cyber-attack are reviewed regularly and, where required, enhanced. However, the rising number of cyber-attacks affecting organisations globally, the Group's greater dependency on technology and the growing threat from cyber-crime are increasing this risk.
Reputational damage from a legal, regulatory or behavioural issue arising from operational activities
Key factors Mitigation Risk appetite Risk averse * The Group operates in many jurisdictions and must be * Processes and methodologies for assessing commodity compliant with all applicable laws and regulations prices and calculating benchmarks and indices are Prior years clearly defined and documented (relative position) * The Group's businesses publish, market and license 2017: Risk increasingly complex content and data which in some * Compliance staff appointed in key positions averse cases is data on which its customers may choose to 2016: Risk rely when executing transactions averse * Compliance with International Organization of 2015: Risk
Securities Commissions (IOSCO) standards achieved for averse * Success of the Group is dependent on client relevant pricing products confidence in integrity of products and brands Post-mitigation risk * Code of conduct and other key policies in place for trend * Claimants can forum shop when determining where to price assessment, benchmark and index reporting litigate or threaten legal proceedings activities This risk is unchanged * Compliance risk is increasing for information * Refreshed anti-bribery and corruption training and Description of providers as price, benchmark and index reporting awareness programme rolled out globally in 2018 risk activities are coming into scope of new regulations change being introduced as a result of the financial crisis of 2008 and LIBOR scandal * A review and update of the Group's Information providers face increased * Risk or reputational damage can arise from errors in trade sanctions controls compliance underlying data or content, failures of data and policy was risks as a integrity, failure to educate customers on completed result appropriate usage of data, inappropriate reliance on * Review processes for operation of events and awards of the third party data or content to create proprietary undertaken in 2018 complexity content or errors in content creation, or a failure of data they to comply with applicable law or regulation publish * Specialist training in publishing law issues provided which customers to relevant staff may rely on for certain * Company-wide speak up policy in place business decisions * Comprehensive legal disclaimers in place * Professional indemnity insurance -------------------------------------------------------------- ---------------- Board's view We have a zero-tolerance approach to certain legal and regulatory risks such as bribery. At the same time, the publication of data and content in digital businesses inevitably exposes the Group to global legal and regulatory risk. The manner in which we conduct our businesses can also result in risk if policies are not complied with. Our divisions have access to the Group's central functions such as legal, risk and internal audit, which provide more specialist resource to raise awareness of, manage and mitigate risk. Legal and regulatory compliance risk for the Group is unchanged.
Disruption to operations from a business continuity failure
Key factors Mitigation Risk appetite Risk averse * Significant reliance on third-party technology * Crisis management and business continuity framework hosting services covers all businesses including disaster recovery Prior years planning for IT systems (relative position) * Many products are dependent on specialist, technical 2017: Risk and editorial expertise * Crisis management exercise programme for the senior averse management team 2016: Risk averse * A significant incident affecting one or more of the 2015: Risk Company's key offices (London, New York, Montreal or * Group-wide IT disaster recovery testing conducted averse Hong Kong) could lead to disruption to Group every six months and business continuity testing operations and reputational damage conducted every 12 months Post-mitigation risk trend * Potential impact of the UK's exit from the EU without * Clear responsibilities for business continuity a deal in place could cause disruption to global planning established across divisions This risk is business travel. This could affect both our unchanged employees' and customers' ability to travel * Substantial central and business group investment in Description of cloud-based platforms and software risk * Information security breach impacting wider business change operations * Risk assessments for new suppliers and technologies The Group consider operational and financial resilience recognises that business continuity * Disposal of a number of businesses this year has events will reduced the number of office locations globally arise from time to time * Migration of the Group's websites to cloud hosting and remains solution committed to active management of this risk ----------------------------------------------------------- ---------------- Board's view Business disruption is an unavoidable risk but can be mitigated if business continuity plans are well developed and managed. In spite of challenges such as extreme weather in Asia and the US and unplanned technology downtime, all businesses maintained operations successfully throughout the year which demonstrated that effective controls are in place. However, regular IT and business continuity planning and testing will continue to be an important control.
Catastrophic or high impact incident affecting key events or wider business
Key factors Mitigation Risk appetite Risk averse * The Group has a number of large events which are * A new event risk management framework is being exposed to one-off risks including natural hazards rolled-out in 2019 Prior years and security incidents (relative position) * Divisional Directors with responsibility for events * Risk affects customers as well as staff and revenue, sit on the Risk Committee 2017: Risk and can also adversely impact brand reputation averse * Crisis management and business continuity framework 2016: Risk * Prolonged interruption to business travel will harm requires all businesses to plan for high impact averse event revenues and disrupt management and sales events operations 2015: Risk neutral * Specialist security and medical assistance services * The Group operates in regions with higher risk of engaged to support all staff working away from the Post-mitigation natural hazards office risk trend * Mandatory security and risk management training This risk is programme for event staff and business travellers unchanged Description of * Close co-ordination between central risk change functions such as The Group risk and information recognises risk with events teams that to ensure robust approach international to risk management events * With sufficient notice, events can be moved to businesses non-affected regions are exposed to this risk and the * Cancellation insurance for the Group's largest events introduction of its event risk management framework will enable further mitigation of this risk in 2019 -------------------------------------------------------------- ---------------- Board's view The Group continues to invest in training and resources to keep staff safe when travelling and to improve event/conference resilience.
Acquisition or disposal fails to generate expected returns
Key factors Mitigation Risk appetite Risk neutral * Active portfolio management means the Group continues * M&A strategy and execution is a regular topic of to make strategic acquisitions and disposals Board focus Prior years (relative position) * Significant growth has been M&A related, through both * Investment Committee established acquired profit and growth in acquired businesses 2017: Risk neutral enabling quicker decision-making * Failure to successfully acquire either the right and detailed Board 2016: Risk businesses (meaning businesses in our top-right oversight of M&A transactions neutral quadrant or which can be developed and moved into our * CEO and CFO closely involved in M&A execution top-right quadrant), or a failure to successfully 2015: Risk make acquisitions at all, will negatively impact our neutral ability to deliver the Group strategy * Active portfolio management with a clear framework and operating in line with agreed strategy Post-mitigation risk * Increasingly high multiples and competitive auction trend processes for high quality assets can favour private * Development of key objective criteria equity buyers This risk is unchanged against which acquisition * Failure to integrate as intended may mean an acquired or disposal Description of business does not generate the expected returns decisions are tested risk * Appropriate approvals process in place change * Risk of impairment loss if an acquired business does A need to not generate the expected returns for transactions execute * Investment in a larger Corporate successful M&A in * Disposal risks arise from failing to identify the a
time at which businesses should be sold or failing to Development team competitive achieve optimal price * Emphasis on and investment in carrying out external, market independent commercial due diligence at an early combined with stage robust * Group strategy relies on successful recycling of risk management capital and therefore M&A execution impacts core and strategy controls means this risk is unchanged ------------------------------------------------------------- ---------------- Board's view The Board's focus on M&A combined with management's experience enables the Group to remain disciplined in its approach, minimising the risk of unsuccessful execution or a failure to make the right acquisitions, or any acquisitions at all.
Unforeseen tax liabilities
Key factors Mitigation Risk appetite Risk averse * The Group operates within many increasingly complex * Audit Committee and Tax and Treasury Committee tax jurisdictions oversight Prior years (relative position) * Changes in legislation and interpretation * New Global Head of Tax and Treasury recruited in 2018 to lead dedicated Tax and Treasury team 2017: Risk averse * The disposal of a number of businesses in 2018 has 2016: Risk reduced the number of office locations globally averse 2015: Risk * Making financial provisions averse Post-mitigation where appropriate risk * Policy to comply with tax laws in a trend This risk is responsible manner increasing * Appropriate care taken to protect the Group's reputation and have open and constructive Description of relationships with fiscal authorities risk change * Internal audit programme covers tax The Group is experienced at managing the tax risks arising from its international business portfolio. However, uncertainty over the terms of the UK's exit from the EU means this risk is increasing ----------------------------------------------------------------- ---------------- Board's view Effective controls are in place but the Group cannot eliminate this risk entirely due to the complexity of the Group's structure and the number of jurisdictions in which it operates. The Group has made appropriate provisions for historical potential liabilities in line with advice from external advisors.
Failure to implement the strategy effectively due to a loss of key staff
Key factors Mitigation Risk appetite Risk neutral: * The strategy is embedded across the * Significant investment in staff budgeted for 2019 becoming across a range of areas, including salary more averse benchmarking and training Group and is having Prior years a positive impact (relative on financial performance. * Ensuring compensation for critical staff including a position) Its implementation balance of short-term and long-term incentives 2017: Risk is partially dependent neutral on the retention and performance of key * Remuneration Committee oversight of Group Management Post-mitigation staff Board rewards risk * Our segments and divisions have individual strategies trend dependent on divisional staff with specific skills,
expertise and industry knowledge * Investment in training such as Leadership 3.0 and This risk is Management 3.0 programmes unchanged * An inability to recruit, retain and train for Description of critical roles will adversely impact our ability to * Plan to launch an employee forum risk deliver the strategy successfully change during the year, allowing Successful for improved employee implementation engagement of the Group's * Proactive relationship management of recruitment strategy search companies to ensure our hiring needs are met remains dependent on hiring and * New recruitment policy, process and retaining key staff. The Group training to be rolled has out in 2019 invested in the * Maintaining the Group's reputation for an recruitment entrepreneurial approach, making it an attractive and training of place to work staff and accelerated succession * There are sufficient businesses within each segment planning within the Group to mitigate the impact of 'business-as-usual' departures of critical staff * Succession planning accelerated in 2018. Plans are now in place for most key staff and our new succession planning framework will help businesses identify and manage key staff * Contractual notice periods are designed to manage the risk of critical staff leaving on short notice * Culture survey results have led to a number of employee initiatives across the Group, designed to improve career progression and staff retention ----------------------------------------------------------------- ---------------- Board's view The Board recognises the importance of retaining critical staff to ensure effective delivery of Group, segmental and divisional strategies. A range of approaches are used to manage this risk effectively, and succession planning accelerated in 2018.
Impact on people and operations of the UK exiting the EU
Key factors Mitigation Risk appetite Risk averse * The UK is scheduled to leave the European Union (EU) * Contingency plans seek to address the key risks and in March 2019 and the potential consequences of that leverage opportunities we identify This is a new are unknown risk * The Group is assessing the potential Post-mitigation * The terms on which the UK will exit the EU are risk unknown trend impact on affected staff This risk is * The length of any transition period following the * The Group has a global geographical footprint increasing UK's EU exit is unknown Description of * Hedging is in place to partially offset the impact of risk * There is no precedent data or facts on which to model US dollar exchange rate risk in the UK change the likely consequences of an EU exit, in particular without agreed terms in place The possibility * A small percentage of Group revenue is generated in of the EU outside of the UK a 'nodeal' exit * The Group, its staff, customers, suppliers and other is stakeholders are unable to plan with precision for increasing, the uncertainty resulting from the above factors * Small number of EU nationals in leading to increased economic our workforce uncertainty, * Potential travel disruption can be mitigated by using therefore international locations and planning longer lead-time this risk is for travel increasing * We use geographically diverse technology suppliers ----------------------------------------------------------------- ---------------- Board's view The Board notes that this risk is increasing for all UK companies. The Company is carrying out contingency planning in a range of areas in light of likely continued uncertainty in the UK market during 2019.
Ends
For further information, please contact:
Euromoney Institutional Investor PLC
Tim Bratton, General Counsel & Company Secretary: +44 (0)20 7779 8288;
About Euromoney Institutional Investor PLC
Euromoney is a global, multi-brand information business which provides critical data, price reporting, insight, analysis and must-attend events to financial services, commodities, telecoms and legal markets. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index.
www.euromoneyplc.com
LEI number: 213800PZU2RGHMHE2S67
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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