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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Ssp Group Plc | LSE:SSPG | London | Ordinary Share | GB00BGBN7C04 | ORD 1 17/200P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.60 | -0.29% | 204.40 | 204.20 | 204.80 | 205.80 | 200.00 | 200.00 | 1,958,116 | 16:35:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Food Preparations, Nec | 3.02B | 8.1M | 0.0102 | 200.20 | 1.63B |
From Apr 2019 to Apr 2024
TIDMSSPG
RNS Number : 9554C
SSP Group PLC
25 January 2018
25 January 2018
LEI: 213800QGNIWTXFMENJ24
SSP Group plc
(the "Company")
Posting of 2017 Annual Report and Accounts and Publication of a Circular including the Notice of Annual General Meeting and details of the Special Dividend and Share Consolidation
On 22 November 2017 the Company published its preliminary results for the year ended 30 September 2017 and announced its intention to return c.GBP100 million to shareholders by way of a Special Dividend. The Company today announces that the Directors have approved the decision to recommend the Special Dividend, subject to Shareholder approval, and have posted to Shareholders a circular which includes the Notice of Annual General Meeting and further details of the proposed Special Dividend and Share Consolidation (the "Circular"), a Form of Proxy and a copy of its Annual Report and Accounts for the period ending 30 September 2017.
All definitions used in the Circular have the same meaning when used in this announcement. The summary set out in this announcement should be read in conjunction with the full text of the Circular.
Special Dividend
The amount of the Special Dividend is 20.9 pence per Existing Ordinary Share. Subject to Shareholder approval at the Annual General Meeting, the Board is proposing to pay the Special Dividend to Shareholders on the register of members of the Company at 6.00 p.m. (London time) on 13 April 2018. The Special Dividend is expected to be paid to Shareholders on 27 April 2018.
Share Consolidation
It is proposed that the payment of the Special Dividend be accompanied by a consolidation of the Company's ordinary share capital. In line with market practice, the Share Consolidation is intended to maintain comparability, as far as possible, of the Company's share price before and after the Special Dividend, subject to normal market fluctuations. Under the proposed Share Consolidation, the Existing Ordinary Shares will be sub-divided and consolidated so that Shareholders will receive 30 New Ordinary Shares for every 31 Existing Ordinary Shares held at the Record Time, expected to be 6.00 p.m. on 13 April 2018. The nominal value of each New Ordinary Share will be 1 1/30 pence. Unless a Shareholder elects otherwise, fractions of New Ordinary Shares arising from the Share Consolidation will be aggregated and sold in the market, with the proceeds being distributed to the SSP Foundation (a charitable organisation set up by SSP Group plc, registered under charity no. 1163717).
The ratio used for the Share Consolidation has been set by reference to the closing middle-market price of 654.5 pence per Existing Ordinary Share and the number of Existing Ordinary Shares in issue on 24 January 2018 (being the latest practicable date prior to the publication of the Circular).
Shareholders will own the same proportion of the Company as they did before the Share Consolidation so far as possible. Although the New Ordinary Shares will have a different nominal value, they will carry the same rights as currently attach to Existing Ordinary Shares under the existing articles of association.
The Special Dividend and Share Consolidation are conditional on Shareholder approval which will be sought at the Annual General Meeting on 27 February 2018 and Admission of the New Ordinary Shares to the Official List and to trading on the Main Market.
Applications will be made for (i) the Official List to be amended to reflect the New Ordinary Shares arising from the Share Consolidation, and (ii) the New Ordinary Shares to be admitted to trading on the Main Market. Trading on the London Stock Exchange for the Existing Ordinary Shares (under ISIN GB00BNGWY422) is expected to close at 4.30 p.m. on 13 April 2018, and it is expected that Admission of the New Ordinary Shares will become effective and trading in the New Ordinary Shares (under ISIN GB00BFWK4V16) will commence at 8.00 a.m. on 16 April 2018.
Expected Timetable
Hot Features
Premium
Latest time and date 11.00 a.m. on 23 February
for receipt of Forms 2018
of Proxy and CREST proxy
instructions for the
Annual General Meeting
Annual General Meeting 11.00 a.m. on 27 February
2018
Ex-dividend date for 15 March 2018
the Final Dividend
Record date for Final 6.00 p.m. on 16 March
Dividend 2018
Payment date for Final 29 March 2018
Dividend
Latest time of dealings 4.30 p.m. on 13 April
in Existing Ordinary 2018
Shares
Record Time for Special 6.00 p.m. on 13 April
Dividend and Share Consolidation 2018
Effective time and date 8.00 a.m. on 16 April
of the Share Consolidation 2018
Admission of New Ordinary 8.00 a.m. on 16 April
Shares to the Official 2018
List and to trading
on the Main Market and
commencement of dealings
in New Ordinary Shares
CREST accounts credited By or as soon as practicable
with New Ordinary Shares after 8.00 a.m. on 16
April 2018
Dispatch (where applicable) 26 April 2018
of share certificates
in respect of New Ordinary
Shares
Payment date for Special 27 April 2018
Dividend
Notes
1. All time references in this announcement are to London, UK time.
2. These dates are given on the basis of the Board's current expectations and are subject to change. If any of the above times and/or dates change, the revised times and/or dates will be notified to Shareholders by announcement through a Regulatory Information Service and will be available on the Company's website at www.foodtravelexperts.com.
3. All events in the above timetable scheduled to take place after the Annual General Meeting in respect of the Final Dividend, the Special Dividend and the Share Consolidation respectively are conditional on the approval by Shareholders of the Final Dividend, the Special Dividend and the Share Consolidation respectively as proposed. All events in the timetable from Admission of the New Ordinary Shares are also conditional upon Admission occurring.
Annual General Meeting
The Company's Annual General Meeting will be held at 11.00 a.m. on 27 February 2018 at the offices of Travers Smith LLP, 10 Snow Hill, London, EC1A 2AL.
National Storage Mechanism
Copies of the 2017 Annual Report and Accounts, the Circular and Form of Proxy have been submitted to the National Storage Mechanism and will shortly be available for inspection at: www.Morningstar.co.uk/uk/nsm. Copies of the 2017 Annual Report and Accounts and the Circular are also available on the Company's website at www.foodtravelexperts.com.
Regulated Information
The information set out in the Appendix, which is extracted from the 2017 Annual Report and Accounts, is included for the purposes of complying with DTR 6.3.5 and its requirements on how to make public annual financial reports. The information in the Appendix should be read in conjunction with the Company's preliminary results for the year ended 30 September 2017 released on 22 November 2017 which can be viewed at www.foodtravelexperts.com. Together, these constitute the material required by DTR 6.3.5 to be communicated in unedited full text through a Regulatory Information Service.
For further information contact:
SSP Group plc
Helen Byrne
Company Secretary & General Counsel
0207 543 3300
Investor and analyst enquiries
Sarah John
Director of Investor Relations
+44 (0) 203 714 5251
E-mail: sarah.john@ssp-intl.com
Appendix
This material should also be read in conjunction with, and is not a substitute for reading, the full 2017 Annual Report and Accounts.
Note and page references in the text of this Appendix refer to note numbers and page numbers in the 2017 Annual Report and Accounts that can be viewed on the Company's website.
1. Directors' Responsibility statement
The following responsibility statement is repeated here to comply with DTR 6.3.5. This statement relates to, and is extracted from, page 57 of the 2017 Annual Report and Accounts. Responsibility is for the full 2017 Annual Report and Accounts, not the extracted information presented in this announcement and the full year results announcement.
The Directors are responsible for preparing the annual report and the Group and parent company financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and parent company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with 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 parent company financial statements in accordance with UK accounting standards, including FRS 101 Reduced Disclosure Framework.
Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent company and of their profit or loss for that period. In preparing each of the Group and parent company financial statements, the Directors are required to:
-- select suitable accounting policies and then apply them consistently; -- make judgements and estimates that are reasonable, 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 parent company financial statements, state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the parent company financial statements;
-- assess the Group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
-- use the going concern basis of accounting, unless they either intend to liquidate the Group or the parent 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 parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial statements comply with the Companies Act 2006. They 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 complies with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge:
-- the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
-- the Strategic report and Directors' report include a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
We consider the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy.
Kate Swann
Chief Executive Officer
21 November 2017
Jonathan Davies
Chief Financial Officer
21 November 2017
2. Principal Risks
The description below of the principal risks and uncertainties that the Company faces is extracted from pages 18 to 21 of the 2017 Annual Report and Accounts.
The following table summarises the principal risks and uncertainties to which the Group is exposed, and the actions taken to mitigate those risks and uncertainties. Risks are identified as principal based on the likelihood of occurrence and the potential impact on the Group and are listed in order of priority.
Two new risks have been added to the principal risks since the prior year, indicated as such in the table below.
Risk increasing Risk decreasing No risk movement
Risk/Risk Priority Risk Description Mitigating
Factors
------------------------------- --------------------------- --------------------------
1. Business environment The Group operates The Group monitors
in the travel the performance
environment where of individual
external factors business units
such as the general and markets
economic and regularly.
geopolitical The Executive
climate, levels Directors review
of disposable detailed weekly
income, weather, and monthly
changing demographics information
and travel patterns covering a
could all impact range of KPIs,
both passenger and monitors
numbers and consumer progress on
spending. There key strategic
is a risk that projects with
the Group is local senior
unable to, or management.
poorly placed Specific short
to, respond to and medium-term
these external actions are
events. taken to address
any trading
The travel environment performance
is vulnerable issues which
to acts of terrorism are monitored
or war, an outbreak on an ongoing
of pandemic disease, basis.
or a major and
extreme weather The Group also
event or natural conducts extensive
disaster which research to
could reduce understand
the number of current levels
passengers in of customer
travel locations. satisfaction
and gathers
feedback on
changing requirements.
The Group has
business continuity
plans in place
including liaison
with authorities
and clients
in key locations
to ensure that
contingency
plans are comprehensive
and complete.
------------------------------- --------------------------- --------------------------
2. Retention The Group's operations The Group's
of existing client are dependent local management
relationships on the terms structures
of airport and in all its
railway station major geographies
concession agreements. allow it to
Growth is dependent maintain strong
on the Group's relationships
ability to retain with its clients
existing concession and monitor
contracts and performance
win new contracts in close partnership
from either new with its clients'
or existing clients. management
The Group's clients teams.
may turn to alternative
operators, cease The Group has
operations, terminate an established
contracts with contact strategy
the Group or with key clients
increase cost to establish
pressure on the and/or maintain
Group. ongoing relationships.
The Group also
has an annual
online and
interview-based
client survey
to ensure any
concerns are
being addressed.
Furthermore,
the Group proactively
seeks to invest
in, extend
and enhance
its offers
in key locations,
working in
conjunction
with clients.
------------------------------- --------------------------- --------------------------
3. Poor execution There is a risk The Group,
and mobilisation that the Group regional and
of new contracts may not be successful country senior
in mobilising management
new contracts teams review
and operating mobilisation
them successfully. plans to ensure
that new openings
are delivered
on time and
in line with
the specific
agreement or
contract.
The Group has
strengthened
the management
teams in the
high-growth
regions of
Asia Pacific,
and India,
especially
in finance
and operations.
------------------------------- --------------------------- --------------------------
4. Labour laws Approximately The Group works
and unions 46% of the Group's proactively
employees are with all of
subject to collective its unions
bargaining agreements. to ensure that
These are principally the various
in France, Germany, collective
Spain, Denmark, bargaining
Finland, Norway, agreements
Sweden and the are appropriate
United States. for the Group
and minimise
The Group is commercial
also subject risks.
to minimum wage
requirements The Group is
and mandatory reviewing the
healthcare subsidisation impact of changes
in some of the in remuneration
jurisdictions structures,
in which it operates, including the
notably North introduction
America, the of the National
United Kingdom Living Wage
and China. and Apprenticeship
Levy in the
United Kingdom
and the healthcare
bill in the
United States
and developing
mitigating
strategies
across the
Group.
------------------------------- --------------------------- --------------------------
5. Implementation The Group is The Group has
of efficiency continuously completed detailed
programmes seeking new programmes evaluation,
to improve efficiency. planning and
These change partial implementation
programmes could of its major
fail to deliver change programmes,
the desired benefits adapting and
e.g. labour efficiency responding
and improvements to feedback
in waste and on an ongoing
loss. basis.
Where required
to aid these
programmes,
the Group continues
to utilise
specialist
expertise in
the business,
both at a Group
and a country
level.
The Group provides
central support
with regional
CEOs and CFOs
to facilitate
appropriate
country actions
based on key
performance
indicators
linked to margin
management.
Group IT also
provides support
for project
management
and implementation
using agreed
standard business
processes
and controls.
------------------------------- --------------------------- --------------------------
6. Changing client Changing client The Group has
behaviours requirements, in place a
such as splitting clear 'SSP
tenders across Value Proposition'
two or more providers, that it presents
partnering with to the client
operators in to address
joint ventures, this risk.
developing third
party purchasing The Group Director
models and favouring of Strategic
local brand operators Partnerships
or partnering and the Group
directly with Chief Commercial
brand owners, Officer work
may adversely closely with
affect the Group's country management
business. teams to enhance
and clarify
the Group's
proposition
to its clients.
The Group's
contact strategy
with key stakeholders
and clients
helps to mitigate
this risk.
This is informed
by its annual
client survey,
which is carried
out by an independent
party.
------------------------------- --------------------------- --------------------------
7. Expansion The Group's strategy The Group has
into new markets involves expanding strengthened
its business the management
in developing team in Asia
markets, including Pacific, and
Asia Pacific, India, especially
India, Eastern in finance
Europe and the and operations
Middle East. where this
risk is high
Political, economic and the Group
and legal systems is growing.
and conditions
in these countries In addition,
are generally the Group adopts
less predictable a joint venture
than in countries model in certain
with more developed new territories
institutional to provide
structures, subjecting access to existing
the Group to local infrastructure
additional commercial, and expertise
reputational, as well as
legal and compliance to help mitigate
risks. the risk inherent
on entering
new territories.
The Group has
clearly defined
authorisation
procedures
for all contract
investment
to ensure that
it is consistent
with the objectives
set by the
Board, and
fully considers
and evaluates
the risks inherent
in expansion
into new locations
and territories.
The Group works
with in-house
and external
advisors to
ensure the
risks of doing
business in
developing
markets are
identified
and, where
possible, mitigated
before entering
those markets.This
includes appropriate
due diligence
of potential
joint venture
and other local
partners.
The Group legal
team works
closely with
country legal
and operational
teams to support
business development
activities
and ensure
compliance
with local
requirements.
The risk of
working in
developing
markets is
also monitored
by the Risk
Committee and
the Audit Committee.
------------------------------- --------------------------- --------------------------
8. Senior management The performance The Group continues
capability and of the Group to review key
retention depends on its roles and succession
ability to attract, plans in country
motivate and and at a Group
retain key employees. level. Senior
The skills developed resources have
in our business been strengthened
are highly attractive in a number
to other companies, of strategically
which regularly important and
target our staff growing businesses.
for recruitment.
The Remuneration
The Group may Committee monitors
not have sufficient the levels
management capability of remuneration
at a senior level, for senior
such as country management
leadership, to and seeks to
execute the planned ensure that
operational efficiency they are designed
programmes and to attract,
support the growth retain and
and development motivate the
of the business. key personnel
required to
The Group may run the Group
not have sufficient effectively.
resources such
as in legal, The Group carries
finance and IT, out an annual
to meet the changing talent mapping
and complex needs exercise to
of an international identify candidates
and growing business. for future
roles and continues
to invest in
additional
resource to
support change
initiatives
and business
development
programmes.
------------------------------- --------------------------- --------------------------
9. Intensified Competition intensifies The Group has
competition as the Group's developed high-quality
competitors become 'business-to-business'
more sophisticated marketing collateral
and direct more to clearly
resources to lay out the
the preparation benefits of
of tenders and working with
take a more aggressive SSP, which
position on commercial it shares with
terms when tendering the clients
for contracts. to help them
This could put better understand
pressure on the the Group's
Group's profitability proposition
and reduce the from both quantitative
availability and qualitative
and attractiveness aspects.
of contracts.
The Group's
strengthened
business development
team utilises
the feedback
from regular
client satisfaction
surveys when
developing
new tenders
to ensure they
remain competitive
to clients.
The Group has
clear internal
benchmarking
and investment
appraisal processes
to evaluate
tender proposals
and to ensure
that the Group
is able to
make a competitive
offer, as well
as meet its
investment
criteria.
The Group continues
to extend its
brand portfolio,
including via
partnerships
with celebrity
chefs, to provide
breadth and
depth as part
of a tender
process.
.
------------------------------- --------------------------- --------------------------
10. Impact of There may be The Group carefully
Brexit a potential impact monitors the
NEW RISK from Brexit on ongoing negotiations
consumer spending, of the UK's
cost inflation exit from the
and the mobility EU and as further
of EU labour impacts of
in the UK. Brexit develop
and crystallise,
the Executive
Directors and
senior management
will consider
and implement
additional
mitigating
actions.
The Group maintains
a global portfolio
and regularly
monitors the
impact of foreign
exchange fluctuations
on its cash
flows, mitigating
the impact
from exchange
risk.
The Group's
pricing and
range initiatives
are driven
by continuous
monitoring
of consumer
spend benchmarks.
Various gross
margin initiatives
including recipe
re-engineering
and procurement
rationalisation
continue to
be pursued,
in order to
mitigate the
impact of cost
inflation.
The Group continues
to develop
its UK recruitment
strategy to
ensure SSP
is positioned
as an attractive
employer in
the UK.
------------------------------- --------------------------- --------------------------
11. Insufficient The Group may The Group prioritises
business development not be successful its investment
capability and in winning new in new contracts
investment contracts on as part of
commercially the ongoing
acceptable terms. review of its
global pipeline,
The Group may and the prioritisation
not have the of its capital
capability to investment
enter new markets and resources.
and capitalise
on the business The Group has
development opportunities strengthened
these provide. the management
team in Asia
Pacific and
India, especially
in finance
and operations.
------------------------------- --------------------------- --------------------------
12. Compliance The laws and The Group has
Risk regulations governing processes in
NEW RISK the Group's industry place to ensure
have become increasingly compliance
complex across with local
a number of jurisdictions laws and regulations.
and a wide variety The Group may
of areas, including, obtain external
among others, advice to supplement
food safety, the in-house
labour, employment, legal and compliance
immigration, team.
security and
safety, health The Group has
and safety, competition a Code of Conduct
and antitrust, and Anti-Bribery
consumer protection and Anti-Corruption
(including data Policy and
protection), training has
environment, been rolled
licensing requirements out internationally.
and related compliance.
The Group's
With a UK parent procedures
company, the under the policy
Group is required include regular
to comply with reporting by
the provisions the businesses
of the UK Bribery into the Risk
Act and the new Committee.
legislation aimed Compliance
at preventing is monitored
the facilitation by Internal
of tax evasion, Audit and the
as well as the Risk Committee
local equivalent on an ongoing
laws in the territories basis and all
in which the alleged breaches
Group operates. of the Code
of Conduct
The Group is and policy
required to comply are investigated.
with current
data privacy The Group has
laws, in many conducted a
of the jurisdictions risk assessment
in which it operates. regarding the
In the EU, the new UK tax
Company will legislation
be subject to and is reviewing
the new General its policies
Data Protection and procedures
Regulation (GDPR) in this regard.
from May 2018.
This requires The Group has
the adoption established
of stricter data a GDPR working
management processes group with
in order to address representatives
greater rights from each key
for individuals, division to
mandatory breach assess and
reporting and ensure the
more rigorous Group is able
compliance obligations. to manage GDPR
compliance
There is a risk risk. Local
that the Group champions have
fails to comply been identified
with the new and the Group
rules or to implement is making progress
adequate processes to ensure it
to safeguard is compliant
personal data. with the new
This could give rules.
rise to larger
fines, penalties The Group has
and civil action food safety
from individuals. controls and
procedures
The preparation in place that
of food and maintenance are embedded
of the Group's in the Group's
supply chain operations.
require a base These are monitored
level of hygiene, by country
temperature maintenance management
and traceability, teams on a
and expose the regular basis
Group to possible and appropriate
food safety liability action is taken
claims and issues. if any issues
are identified.
Training sessions
are also held
in country
to ensure compliance
with these
procedures.
------------------------------- --------------------------- --------------------------
13. Execution The Group fails The Group continues
of outsourcing to execute outsourcing to utilise
programmes projects effectively specialist
resulting in resources in
the business the business
as usual being to manage implementation
disrupted and and transition
the introduction projects and
of new third to use external
party risks. advisors to
provide input
into the management
of risks on
such projects.
Performance
feedback is
reported to
the Executive
Committee on
a regular basis
and the Risk
Committee periodically.
The Group has
included the
outsourcing
centres in
its Internal
Audit review
scope.
The outsourcing
partners are
highly reputable
and were selected
after a rigorous
tender process
and extensive
due diligence.
------------------------------- --------------------------- --------------------------
14. Maintenance/development The Group's success The Group carries
of brand portfolio is largely dependent out extensive
upon its ability customer research
to maintain its into passengers'
portfolio of needs and continually
proprietary brands analyses market
as well as the trends in order
brands of its to enhance
franchisors, its brand and
and the appeal concept portfolio
of those brands on an ongoing
for clients and basis.
customers. The
loss of any significant The Group continues
partner brands, to strengthen
the inability its dedicated
to obtain rights brands team
to new brands to work closely
over time or with its partner
the diminution brands and
in the appeal to enable greater
of partner brands capacity to
or the Group's attract and
proprietary brands manage a broader
could impair portfolio of
the Group's ability external brands.
to compete effectively
in tender processes
and ultimately
have a material
adverse effect
on the Group's
business.
------------------------------- --------------------------- --------------------------
15. Cyber threats The Group becomes The Group continually
exposed to information reviews its
security and business continuity
cyber threats plans for its
e.g. Payment supply chain,
Card Industry IT disaster
Data Security recovery, and
Standards (PCIDSS). information
security policies
and practices
to ensure that
these meet
the changing
landscape.
The Group's
segmental business
model and IT
systems structure
help to ensure
that potential
cyber attacks
are likely
to remain isolated
locally rather
than impacting
the whole Group.
------------------------------- --------------------------- --------------------------
16. Tax strategy Risk that reputation The Group has
is damaged if a tax management
customers, clients policy which
and/or suppliers is based on
believe that Board guidance
the Group is to adopt a
engaged in aggressive low risk tax
or abusive tax strategy.
avoidance.
------------------------------- --------------------------- --------------------------
3. Related Parties
The following is extracted from note 27 to the Group's consolidated financial statements (on pages 97 to 98).
Related party relationships exist with the Group's subsidiaries, associates (note 12), key management personnel, pension schemes (note 19) and employee benefit trust (note 21).
Subsidiaries
Transactions between the Company and its subsidiaries, and transactions between subsidiaries, have been eliminated on consolidation and are not disclosed in this note. Where the Group does not own 100% of its subsidiary, significant transactions with the other investors in the jointly owned subsidiary (JV partner), other than those listed in note 21, are disclosed in this note. Sales and purchases with related parties are made at normal market prices.
Associates
Significant transactions with associated undertakings during the year, other than those included in note 12, are included in the table below.
2017 2016
GBPm GBPm
------------------------------------------------------- ----- -----
Purchases from related parties(1) (5.4) (4.8)
Management fee income 2.5 1.6
Other income 1.5 0.9
Other expenses(2) (6.5) (0.2)
Amounts owed by related parties at the end of the year 4.2 0.7
Amounts owed to related parties at the end of the year (0.8) (4.9)
------------------------------------------------------- ----- -----
1 The majority of purchases from related parties relates to purchases from The Minor Food Group PCL (GBP4.8m; 2016: GBP4.8m) which owns 51% of Select Service Partner Co. Limited.
2 The majority of other costs relate to GBP5.3m concession fees charged by Mumbai Airport Private Limited, which owns 14.7% of Mumbai Airport Lounge Services Private Limited.
The Group has provided a number of guarantees to third parties in respect of obligations of its associates, relating to, for example, concession agreements, franchise agreements and financing facilities. In addition, certain subsidiaries benefit from guarantees provided by the Group's JV partners to similar third parties (in respect of obligations of the subsidiaries). These guarantees are consistent with those provided in the normal course of business in respect of the Group's wholly owned subsidiaries.
Remuneration of key management personnel
The remuneration of key management personnel of the Group is set out below in aggregate for each of the categories specified in IAS 24 'Related Party Disclosures'. The Group considers key management personnel to be the Chief Executive Officer, Chief Financial Officer and Non-Executive Directors.
2017 2016
GBPm GBPm
----------------------------- ----- -----
Short-term employee benefits (4.1) (4.0)
Post-employment benefits (0.4) (0.4)
Share-based payments (2.3) (1.3)
----------------------------- ----- -----
(6.8) (5.7)
----------------------------- ----- -----
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSESFDIFASEIF
(END) Dow Jones Newswires
January 25, 2018 09:30 ET (14:30 GMT)
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