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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Intertek Group Plc | LSE:ITRK | London | Ordinary Share | GB0031638363 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-20.00 | -0.39% | 5,055.00 | 5,070.00 | 5,080.00 | 5,100.00 | 5,050.00 | 5,100.00 | 205,916 | 16:35:13 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Testing Laboratories | 3.33B | 297.4M | 1.8438 | 27.52 | 8.19B |
TIDMITRK
RNS Number : 2036F
Intertek Group PLC
18 March 2022
INTERTEK GROUP PLC
(the 'Company')
18 March 2022
ANNUAL REPORT AND ACCOUNTS 2021 AND NOTICE OF 2022 ANNUAL GENERAL MEETING
In accordance with Listing Rule 9.6.1R and Disclosure Guidance and Transparency Rule ('DTR') 4.1.3R, the Company announces that the following documents have been posted to shareholders and submitted to the UK Listing Authority via the National Storage Mechanism:
-- Intertek Group plc 2021 Annual Report and Accounts; -- Notice of 2022 Annual General Meeting; and -- Proxy Form for the 2022 Annual General Meeting.
The above mentioned documents (except for the Proxy Form) are available on our website at www.intertek.com and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism . The 2022 Annual General Meeting is due to be held on Wednesday, 25 May 2022 at 9.00 a.m. in the Marlborough Theatre, No. 11 Cavendish Square, London W1G 0AN.
In compliance with DTR 6.3.5R, the information contained in the Appendix below is extracted from the 2021 Annual Report and Accounts and should be read in conjunction with the Company's 2021 Full Year Results Announcement for the year ended 31 December 2021 issued on 1 March 2022. Both documents are available at www.intertek.com and together constitute the material required by DTR 6.3.5R to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the 2021 Annual Report and Accounts in full. Page numbers and cross references in the extracted information refer to page numbers and cross references in the 2021 Annual Report and Accounts.
Appendix
1. PRINCIPAL RISKS AND UNCERTAINTIES
This section sets out a description of the principal risks and uncertainties that could have a material adverse effect on the Group's strategy, performance, results, financial condition and reputation.
Risk framework
The Board has overall responsibility for the establishment and oversight of the Group's risk management framework. This work is complemented by the Group Risk Committee, whose purpose is to manage, assess and promote the continuous improvement of the Group's risk management, controls and assurance systems.
This risk governance framework is described in more detail in the Directors' report on pages 98 to 166.
The Group Audit Director and the Group General Counsel, who report to the Chief Financial Officer and Chief Executive Officer respectively, have accountability for reporting the key risks that the Group faces, the controls and assurance processes in place and any mitigating actions or controls. Both roles report to the Audit Committee, attend its meetings and meet with individual members each year as required.
Risks are formally identified and recorded in a risk register which is owned by each of the Group's divisional, regional and functional risk committees. Risk registers are updated throughout the year by these risk committees and are used to plan the Group's internal audit and risk strategy.
In addition to the risk registers, all senior executives and their direct reports are required to complete an annual return to confirm that management controls have been effectively applied during the year. The return covers Sales, Operations, IT, Finance and People.
Principal risks
The Group is affected by a number of risk factors, some of which, including macroeconomic and industry-specific cyclical risks, are largely outside the Group's control. Some risks are particular to Intertek's operations. The principal risks of which the Group is aware are detailed on the following pages, including a commentary on how the Group mitigates these risks. These risks and uncertainties do not appear in any particular order of potential materiality or probability of occurrence.
There may be other risks that are currently unknown or regarded as immaterial which could turn out to be material. Any of these risks could have the potential to impact the performance of the Group, its assets, liquidity, capital resources and its reputation.
Changes to principal risks
Our principal risks continue to evolve in response to our changing risk environment.
This year, based on our current assessment of its materiality, we have included three new principal risks: macro-economic risk, reflecting an increase in global economic and fiscal uncertainty caused by Covid-19; contracting risk, reflecting an increased focus on customer contract terms and supplier resilience; and sustainability risk, which is the risk of extreme weather events having an impact on our and our customers' operations. We have also removed third-party relations as we no longer believe this is a principal risk to the Group.
Operational Principal risk Possible impact Mitigation 2021 update --------------------------------------------------------------- ----------------------------- -------------------- Reputation -- Failure to -- Quality Management This risk remains Reputation is meet financial Systems; adherence stable compared key to the performance expectations. to these is regularly with Group -- Exposure to audited and reviewed 2020. The Group maintaining and material legal by external parties, continues growing its claims, associated including accreditation to invest in staff business. costs and wasted bodies. development, Reputation risk management time. -- Risk Management quality can occur in -- Destruction Framework and associated systems and a number of of shareholder controls and assurance standard ways: value. processes, including processes to directly as the -- Loss of existing contractual review prevent result of the or new business. and liability caps operational actions of the -- Loss of key where appropriate. failures. Group or a staff. -- Code of Ethics Group which is communicated company itself; to all staff, who indirectly due undergo regular training. to the actions -- Zero-tolerance of an employee approach with regard or employees; to any inappropriate or through the behaviour by any individual actions of employed by the Group, other or acting on the Group's parties, such behalf. as joint -- Whistleblowing venture programme, monitored partners, by the Audit Committee, suppliers, where staff are encouraged customers or to report, without other industry risk, any fraudulent participants. or other activity likely to adversely affect the reputation of the Group. -- Relationship management and communication with external stakeholders. --------------------------------------------------------------- ----------------------------- -------------------- Customer -- May lead to -- Net Promoter This service customer dissatisfaction Score risk A failure to and ('NPS') customer remains focus on customer loss. satisfaction, stable
customer -- Gradual erosion customer sales compared needs, to of market share trends with provide and reputation and turnaround 2020 . customer if competitors time innovation are perceived tracking. or to deliver to have better, -- Global and our services more responsive Local in accordance or more consistent Key Account with our service offerings. Management customers' ('GKAM'/'LKAM') expectations initiatives and our in place. customer -- Customer promise. feedback meetings. -- Customer claims/complaints reporting. --------------------------------------------------------------- ----------------------------- -------------------- People -- Poor management -- HR strategy policies This risk remains retention succession. and systems. stable compared The Group -- Lack of continuity. -- Development and with operates -- Failure to reward programme to 2020. in specialised optimise growth. retain and motivate sectors and -- Impact on quality, employees. needs to reputation and -- Succession planning attract customer confidence. to ensure effective and retain -- Loss of talent continuation of leadership employees to competitors and expertise. with relevant and lost market experience and share. knowledge in order to take advantage of all growth opportunities. --------------------------------------------------------------- ----------------------------- -------------------- Macro-Economic -- Impact on revenue. -- We continue to This is a new risk Macro-economic -- Falling market focus on developing for 2021. factors such share. business in new markets as a -- Shrinking customer and for new customers. global/market base. -- We continue to downturn, -- Impact on share focus on innovations inflation, price. in our service offerings. supply chain -- We continue to and logistics monitor trends and restrictions, customer pipelines. materials -- We conduct regular shortages, strategic and business and contraction line reviews, including / changing budget forecasting. requirements -- We continue to in certain monitor the impacts sectors. of external risk factors, and have access to data and analysis from our external advisers. --------------------------------------------------------------- ----------------------------- -------------------- Health, safety -- Individual -- Quality management This risk remains and wellbeing or multiple injuries and associated controls, stable compared Any health and to employees including safety training, with safety incident and others. appropriate PPE (Personal 2020. arising from -- Litigation Protective Equipment), our activities. or legal/regulatory Health & Safety policies This could enforcement action (including due diligence result (including prosecution) on sub-contractors), in injury to leading to reputational meetings and communication. Intertek's damage. -- Avoiding fatalities, employees, -- Loss of accreditation. accidents and hazardous subcontractors, -- Erosion of situations is paramount. customers customer confidence. It is expected that and/or -- Wellbeing - Intertek employees any other individual or will operate to the stakeholders multiple instances highest standards affected. of stress-related of health and safety Wellbeing issues and/or at all times and there impacts on our illnesses, are controls in place people absenteeism, and to reduce incidents. resulting related impacts -- Business continuity from the on morale. planning. Covid-19 -- Employee wellbeing pandemic and programme. other similar events. --------------------------------------------------------------- ----------------------------- -------------------- Industry and -- Failure to -- GKAM and LKAM initiatives This risk remains competitive maximise revenue in place. stable compared landscape opportunities. -- Diversification with A failure to -- Failure to of customer base. 2020. identify, take advantage -- Focus on new services The Group continues manage of new opportunities. and acquisitions. to invest in and take -- Lack of ability -- Tracking new laws innovation and to advantage to respond flexibly. and regulations. adapt our service of emerging and -- Erosion of -- Regular strategic delivery to meet future risks. market share. and business line our
Examples -- Impact on share reviews. clients changing include price. -- Development of needs. the -- Sanctions and ATIC-selling initiatives. opportunities fines for non-compliance -- NPS customer research provided by new with new laws, to understand customer markets and etc. satisfaction. customers, -- Using innovation a failure to to respond to the innovate in Covid-19 pandemic. terms of service offering and delivery, the challenge of radically new and different business models; the failure to foresee the impact of, or adequately respond to and comply with, changing or new laws and regulations; a failure to anticipate and address the operational, strategic, regulatory and reputational impact of climate change and environmental factors; and a failure to identify and take advantage of the impact of post-Brexit changes to our clients' operations and supply chains. --------------------------------------------------------------- ----------------------------- -------------------- IT systems and -- Loss of revenue -- Information systems This risk remains data security due to down time. policy and governance stable compared Systems -- Potential loss structure. with integrity: of sensitive data -- Regular system 2020. major IT with associated maintenance. systems legal implications, -- Backup systems integrity including regulatory in place. issue, sanctions and -- Disaster recovery or data potential fines. plans that are constantly security -- Potential costs tested and improved breach, either of IT systems' to minimise the impact due to internal replacement and if a failure does or external repair. occur. factors -- Loss of customer -- Global Information such as confidence. Security policies deliberate -- Damage to reputation. in place (IT, Data interference -- Loss of revenue/profitability Protection, CyberSecurity). or power if we fail to -- Adherence to IT shortages/cuts, adopt an IT investment finance systems controls etc. strategy which (part of Core Mandatory Systems supports the Group's Controls ('CMCs')). functionality: growth, innovation -- Adherence to IT a failure to and customer offering. general controls. define the -- Internal and external right audit testing. IT strategies, -- Processes to ensure maintain compliance with GDPR. existing IT systems or implement new IT systems with the required functionality and which are fit for purpose, in each case to support the Group's growth, innovation and competitive customer offering. Data security: a failure to adequately protect the Group's confidential information, customer confidential information or the personal data of the Group's employees, customers or other stakeholders. --------------------------------------------------------------- ----------------------------- -------------------- COVID-19 -- We are closely We believe this The risk caused * There is a health and safety risk to our people who monitoring our people's risk by the ongoing come into contact with confirmed cases. health, safety and remains similar to coronavirus security and relevant the prior year. pandemic. The regulatory requirements. Although virus is a -- In affected -- We have implemented, global vaccination potential areas, there is and continually revise, programmes and risk to: (1) a risk that the the Group's Covid-19 other the health and ability of our Health and Safety factors (such as safety of our people to work Policy, which covers rapid people; (2) the as normal is impacted extensive hygiene mass testing and ability of our by mandatory health control and prevention improved and our and safety restrictions, measures for our office treatments and customers' including quarantine and field-based people. therapies) businesses and travel restrictions -- We have made changes have reduced this to operate in certain cases. to operational procedures risk during 2021, normally; -- There is a to redirect work to there remains and (3) global risk that the Intertek facilities significant supply ability of our in unaffected locations. uncertainty over chains and the people to perform -- We are engaging new flow of goods field-based work closely with our customers variants and the and services. (audits and inspections) to support their needs. potential continues to be -- We have working for ongoing affected by control groups at the Group, government and prevention regional and local restrictions. measures that levels to monitor we and our clients the situation and We continue to work are taking, or put appropriate mitigation closely with our are subject to. action and continuity clients -- In affected plans in place. to prioritise the areas, there is -- We have implemented health and safety risk of disruption a remote inspection of our and their to our normal approach to ensure people operations both compliance with the and to maximise as a consequence Covid-19 Health and business of the issues Safety Policy across continuity. faced by our people all of our sites. and of the impact to our clients' operations and production levels.
--There is a risk that an ongoing situation could continue to disrupt global supply chains, which could lead to a need to refocus our service offering or delivery locations to align optimally with customer requirements and to remain competitive. -- There is a risk that our 2022 performance will be affected by the disruption to the supply chains of our clients and any impact it may have on global trade activities. --------------------------------------------------------------- ----------------------------- -------------------- Contracting -- Any deviations This is a new risk Agreeing * Margin decretive work. from our standard for 2021. unfavourable contract terms are terms with subject to legal review customers -- Onerous liabilities and approval, and and/or and exposures. all contracts must suppliers * Non-optimised pricing. be approved in line as a result of with our Authorities not following Grid (which sets out agreed contract -- Financial exposures approval limits based review due to claims on contract values processes, and litigation. and other relevant and/or failing factors). to negotiate -- We continue to appropriate operate our claims terms. notification procedure, including claims management and insurer liaison where needed. -- Both our contracting and claims processes are supported by training programmes for relevant staff, and the use of relevant systems and databases. --------------------------------------------------------------- ----------------------------- -------------------- Legal and Regulatory Regulatory and -- Loss of revenue, -- Monitoring of regulatory This risk remains political profitability environment and political stable compared landscape and/or market developments. with A failure to share. -- Analysis of impact 2020. identify and -- Increase to of regulatory and respond costs of operations, political changes appropriately reduction in profitability. on operational SOPs to a change in -- Reduction in and Group policies. law and/or the attractiveness -- Membership of relevant regulation, of investment associations, e.g. or to a in specific TIC Council with related political business, sectors advocacy and liaison decision, event or markets and/or activities including or condition adverse change in relation to developing which could in the competitive climate-related or impact landscape. environmental regulations. demand for the Group's services or the Group's ability to grow, innovate and/or provide a competitive customer offering in any existing or new industry sector or market. --------------------------------------------------------------- ----------------------------- -------------------- Business ethics -- Litigation, -- Annual Code of This risk remains Non-compliance including significant Ethics training and stable compared with Intertek's fines and debarment sign-off requirement. with Code of Ethics from certain territories/activities. -- Whistleblowing 2020. ('the Code') -- Reputational programme, monitored Ongoing annual and/or related damage. by the Group Risk confirmations laws such as -- Loss of accreditation. Committee, where staff ensure that staff anti-bribery, -- Erosion of are encouraged to verify compliance anti-money customer confidence. report, without risk, with the Code. laundering, -- Impact on share any fraudulent or Local compliance and fair price. other activity likely officers competition to adversely affect perform due legislation. the reputation of diligence Non-compliance the Group. on sub-contractors could be either -- Enhanced processes to check that they accidental or for engagement with have signed the deliberate, and suppliers and third Group's committed parties. Code. either -- Zero-tolerance During 2021, 112 by our people approach with regard (2020: or to any inappropriate 99) non-compliance sub-contractors behaviour by any individual issues were who must also employed by the Group, reported abide by the or acting on the Group's through the Code. behalf. whistleblowing -- The Group employs hotline and other local people in each routes. All were country who are aware investigated, of local legal and with 19 (2020: 27) regulatory requirements. substantiated and
There are also extensive corrective action internal compliance taken. and audit systems to facilitate compliance. Expert advice is taken in areas where regulations are uncertain. -- The Group continues to dedicate resources to ensure compliance with the UK Bribery Act and all other anti-bribery legislation, and internal policy. --------------------------------------------------------------- ----------------------------- -------------------- Sustainability -- Impact on business -- All our locations This is a new risk The risk of continuity due are required to maintain for 2021. extreme to facilities robust business continuity weather events being damaged plans. leading to or inaccessible. -- Net Promoter Score business -- Impact on health, ('NPS') customer interruption. safety and wellbeing satisfaction, of our people. customer sales trends -- Delays in turnaround and turnaround time time. tracking. -- Customer relationship -- We maintain up-to-date impacts. asset registers and -- Increased costs. values alongside our -- Logistical Group Insurance programme. challenges due -- We have an established to redirection crisis management of work. procedure. -- Impact on revenue and margin. --------------------------------------------------------------- ----------------------------- -------------------- Financial Financial risk -- Financial losses -- The Group has financial, This risk remains Risk of theft, with a direct management and systems stable compared fraud or impact on the controls in place with financial bottom line. to ensure 2020. misstatement -- Large-scale that the Group's assets We continue to by employees. losses can affect are protected from review On acquisitions financial results. major financial risks. and update the CMCs or investments, -- Potential legal -- Adherence to Authorities on an annual basis the financial proceedings leading Grid (which sets approval and use them for risk or to costs and/or limits for financial year-end exposure management time. transactions). compliance arising from -- Corresponding -- Stringent controls certification. due diligence, loss of value on working capital integration or and reputation and cash collection. performance could result in -- Legal, financial delivery funding being and other due diligence failures. withdrawn or provided on M&A and other at higher interest investments. rates. -- Monitoring adherence -- Possible adverse to our CMCs and tracking publicity. of remediations by our compliance and finance controls teams and using our framework of risk committees. -- A detailed system of financial reporting is in place to ensure that monthly financial results are thoroughly reviewed. The Group also operates a rigorous programme of internal audits and management reviews. Independent external auditors review the Group's half year results and audit the Group's annual financial statements. --------------------------------------------------------------- ----------------------------- -------------------- 2. Related Parties
Identity of related parties
The Group has a related party relationship with its key management. Transactions between the Company
and its subsidiaries and between subsidiaries have been eliminated on consolidation and are not discussed
in this note.
Transactions with key management personnel
Key management personnel compensation, including the Group's Directors, is shown in the table below:
2021 2020 GBPm GBPm ----------------------------- ------ ------ Short-term benefits 9.7 11.6 Post-employment benefits 0.8 0.8 Equity-settled transactions 7.7 10.4 ----------------------------- ------ ------ Total 18.2 22.8 ----------------------------- ------ ------
More detailed information concerning Directors' remuneration, shareholdings, pension entitlements and
other long-term incentive plans is shown in the audited part of the Remuneration report. Apart from the
above, no member of key management had a personal interest in any business transactions of the Group.
3. Statement of Directors' responsibilities
Statement of Directors' responsibilities in respect of the Financial Statements
The Directors are responsible for preparing the Annual Report & Accounts 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 UK-adopted international accounting standards and the Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law).
Under company law, 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 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 UK-adopted international accounting standards have been followed for the Group financial statements and United Kingdom Accounting Standards, comprising FRS 101 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 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 also responsible for keeping adequate accounting records that are sufficient to show and explain the Group's 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.
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.
Directors' confirmations
The Directors consider that the Annual Report & Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's and Company's position and performance, business model and strategy.
Each of the Directors, whose names and functions are listed in the Directors' Report confirm that, to the best of their knowledge:
- the Group financial statements, which have been prepared in accordance with UK-adopted international accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Group; - the Company financial statements, which have been prepared in accordance with United Kingdom Accounting Standards, comprising FRS 101, give a true and fair view of the assets, liabilities and financial position of the Company; and - the Strategic 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.
In the case of each Director in office at the date the Directors' Report is approved:
- so far as the Director is aware, there is no relevant audit information of which the Group's and Company's auditors are unaware; and
- they have taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Group's and Company's auditors are aware of that information.
The Directors' Report comprising pages 98 to 166 and the Group Strategic report comprising pages 1 to 61 have been approved by the Board and signed on its behalf by the Chief Executive Officer.
The Company's 2021 Annual Report & Accounts will be delivered to the Registrar of Companies in due course and copies of all of these documents may also be obtained from:
Fiona Evans
Group Company Secretary
Intertek Group plc
33 Cavendish Square
London
W1G 0PS
Registered Number: 4267576
Telephone: +44 (0)20 7396 3400
Contacts
For further information, please contact:
Denis Moreau, Investor Relations
Telephone: +44 (0) 20 7396 3415 investor@intertek.com
Ed Bridges, FTI Consulting
Telephone: +44 (0) 20 3727 1000 scintertek@fticonsulting.com
Intertek is a leading Total Quality Assurance provider to industries worldwide.
Our network of more than 1,000 laboratories and offices in more than 100 countries, delivers innovative and bespoke Assurance, Testing, Inspection and Certification solutions for our customers' operations and supply chains.
Intertek Total Quality Assurance expertise, delivered consistently, with precision, pace and passion, enabling our customers to power ahead safely.
intertek.com
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