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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Tate & Lyle Plc | LSE:TATE | London | Ordinary Share | GB00BP92CJ43 | ORD 29 1/6P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
7.00 | 1.12% | 633.50 | 633.50 | 634.50 | 634.00 | 629.00 | 630.00 | 78,384 | 12:33:50 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Flavoring Extract,syrup, Nec | 1.85B | 190M | 0.4730 | 13.39 | 2.54B |
TIDMTATE
Tate & Lyle PLC
Annual Financial Report
Tate & Lyle PLC (the "Company") confirms that copies of the following documents have been submitted to the National Storage Mechanism and will shortly be available for inspection at: www.morningstar.co.uk/uk/NSM.
1. Annual Report 2017;
2. Notice of Annual General Meeting 2017;
3. Notice of Availability; and
4. Proxy Form.
The Annual Report 2017, Notice of Annual General Meeting 2017 and Notice of Availability are also available on Tate & Lyle's website at www.tateandlyle.com/investors/annual-reports.
For the purposes of complying with Disclosure Guidance and Transparency Rule (DTR) 6.3.5R and the requirements it imposes on issuers as to how to make public annual financial reports, we set out below:
- in Appendix A, the principal risks and uncertainties facing the Company;
- in Appendix B, the Directors' responsibility statement; and
- in Appendix C, the disclosure regarding related party transactions.
The appendices have been extracted from the Annual Report 2017 in unedited full text and the page numbers in the text refer to the page numbers in that document. This information should be read in conjunction with the Company's 2017 full-year results announcement, released on 25 May 2017, which contained a condensed set of financial statements and which can be found at www.tateandlyle.com/Investors/results-and-presentations. Together, these constitute the material required by DTR 6.3.5R to be communicated to the media in unedited full text through a Regulatory Information Service.
Claire-Marie O'GradyCompany Secretary19 June 2017
APPIX A
RISK FACTORS
Principal risks
The Board has carefully considered the type and extent of the principal risks to the Group achieving its objectives. While the Group seeks to manage risk carefully, at the same time the Board recognises that some risk needs to be taken for the Group to achieve its strategic goals.
Over time, the risk profile of the Group evolves and the Board's view of the principal risks is updated accordingly. This year, 'shareholder expectations' has been removed as a principal risk following the stabilisation and then improvement in the Group's
financial performance over the last two years. Conversely, given increasing geopolitical uncertainty over the last year in some of the markets we operate in, the Board has decided to add 'government regulations and trade policies' as a principal risk this year.
The Board confirms that a robust assessment of the principal risks facing the Company, including those that would threaten its business model, performance, solvency and liquidity, has been carried out. The principal risks identified as part of
the process undertaken during the year, together with examples of the mitigating actions being taken, are set out on pages 40 and 41. It is not possible to identify or anticipate every risk that may affect the Group.
Safety
Act safely and maintain the safe operation of our facilities
The safety of our employees, contractors, suppliers, and the communities in which we operate is paramount. We must operate within local laws, regulations, rules and ordinances relating to health, safety and the environment, including emissions. Failure to act safely, which could lead to loss of life or serious injury, may give rise to fines or penalties for breach of safety laws, interruptions in operations or loss of our licence to operate, liability payments and costs arising from injuries or damage, and damage to our reputation.
Examples of how we manage the risk
-- Health and safety policies and procedures at all facilities with
dedicated staff to ensure they are embedded and measured
-- Regular review of performance and policies by the Corporate
Responsibility Committee
-- Maintenance of suitable insurance programme -- Programme of global compliance audits; senior executives also
undertake annual executive audits at most sites
-- Process safety management system in place to manage use of hazardous
chemicals
-- SafeStart® behavioural safety training programme rolled out
across plants, offices and labs
-- Comprehensive review of Group-wide safety protocols, procedures and
culture being undertaken with the support of an independent external
expert consultancy
Strategy
Growth in speciality food ingredients
Tate & Lyle's strategy is to become a leading global provider of speciality food ingredients and solutions. Our ability to deliver that strategy may be affected by a number of factors such as delivering growth in emerging markets, acquisitions, customers' readiness to adopt new ingredients and incorporate them in new product
launches, competitor actions, and growing key product or product families. Failure to deliver our strategy over the longer term would negatively affect our credibility, reputation and profitability.
Examples of how we manage the risk
-- Investments to increase sales and technical resources, and
infrastructure, particularly in emerging markets
-- New staff recruited and existing staff developed to upgrade skill sets
in customer-facing areas and innovation
-- Enhancement of internal capabilities to promote growth through
acquisition and partnerships, for example the new distribution
agreement with Sweet Green Fields for stevia ingredients announced
during the year
-- Global programme to increase customer focus in key areas such as
customer account management, planning and execution
Innovation
Innovate and commercialise new products
Failure to identify important consumer trends and provide innovative solutions, and the inability to successfully commercialise new products, could impact the delivery of our strategy. This would affect our performance and reputation.
Examples of how we manage the risk
-- Innovation and Commercial Development team conducts research and works
closely with customers and other external organisations to identify
emerging consumer trends
-- Open innovation team actively scouts for breakthrough technologies and
opportunities across industries and universities
-- Global marketing organisation provides support for new product
launches and consumer and category insight
-- Prioritisation of 'partnership' opportunities with customers to
accelerate development cycles and time to market for new ingredients
-- Tate & Lyle Ventures invests in early-stage companies in the areas of
food science and technology by partnering with research institutions,
entrepreneurs and other venture funds
People
Attract, develop, engage and retain key personnel
Performance, knowledge and skills of employees are central to our success. We must attract, integrate, engage and retain the talent required to deliver our strategy, and have the appropriate processes and culture in place. Being unable to retain key people and adequately plan for succession could have a negative impact on our
performance.
Examples of how we manage the risk
-- Remuneration policies designed to attract, retain and reward employees
with ability and experience to execute Group strategy
-- Talent development strategy to provide opportunities for employees, as
well as training to close skills gaps
-- Single global performance management system and talent planning
processes in place
-- Greater focus by the Board on succession planning for
business-critical roles
-- Measurement of progress against cultural objectives, for example,
global employee surveys
Legal and compliance
Comply with legal or regulatory requirements, and our Code of Ethics
We operate in a variety of markets and are therefore exposed to a wide range of legal and regulatory frameworks. We must understand and comply with all applicable legislation. Any breach could have a financial impact and damage our reputation.
Examples of how we manage the risk
-- Regular monitoring and review of changes in law and regulation in
areas such as health and safety, environment, quality, food safety,
corporate governance and data protection
-- Legal teams maintain compliance policies in areas such as anti-trust
and anti-corruption law; and provide ongoing training to employees
-- Ethics training provided to employees -- Whistleblowing process in place (Speak Up programme)
Cyber security
Maintain the security of our information systems and data
A cyber security breach, whether as a result of human error, deliberate action or the failure of technology systems, could result in unauthorised access to or misuse of information systems, technology or data. This could cause harm to our assets, loss of
data, business disruption, legal liabilities and damage to our reputation.
Examples of how we manage the risk
-- Cyber security enhancement programme in place focused on strengthening
people, process and technology defences
-- Compulsory cyber security training -- Cyber security breach scenario exercises -- Advanced perimeter defences in place -- Continuous vulnerability detection and defences -- Separation of systems within plant network -- Third-party Security Operations Centre providing 24/7 security
monitoring, security event correlation and threat countermeasures
Operations and supply chain
Maintain the continuous operation of our plant network and supply chain, including high standards of customer service
Operating plants involves many risks which could cause temporary or permanent breaks in production. We must have a robust sales and operations planning process to avoid disruption to the supply chain and maintain high standards of customer service. Failure to do any of these things could have a material adverse effect on our
performance and reputation.
Examples of how we manage the risk
-- Preventive maintenance programme across the plant network -- Ongoing programme to improve global supply chain processes -- Business continuity capabilities in place to enable supply, as quickly
as practicable, of product to customers from alternative sources in
the event of a natural disaster or major equipment or plant failure
-- Dedicated internal resources allocated to key projects in conjunction
with business teams to ensure business continuity is not compromised
-- Customer service managed by Global Operations as part of integrated
end-to-end supply chain process
Raw materials
Fluctuations in prices and availability of raw materials, energy, freight and other operating inputs
Our margins may be affected by fluctuations in crop prices due to factors such as alternative crops, co-product values and the variability of local or regional harvests caused by, for example, weather conditions, crop disease, climate change or crop yields. In some cases, due to the basis for pricing in sales contracts, or due to competitive markets, we may not be able to pass on to customers the full increase in raw material prices or higher energy, freight or other operating costs. Additionally, margins may be affected by customers not taking expected volumes.
Examples of how we manage the risk
-- Strategic relationships with suppliers and trading companies including
multi-year agreements
-- Balanced portfolio of supply and tolling contracts in operation with
customers to manage balance of raw material prices and product sales
prices and volume risks
-- Raw material and energy purchasing policies to provide security of
supply
-- Network of corn elevators to enhance security of supply -- New or back-up supply sources in place in case primary suppliers face
localised challenges
-- Use of derivatives and forward contracts where practical, to hedge and
manage our exposure to raw material and co-product prices
Quality
Maintain the quality and safety of our products
The safety of the consumers of our products is critical. Poor quality or sub-standard products could have a negative impact on consumer safety and on our reputation and relationships with customers.
Examples of how we manage the risk
-- Strict quality control and product testing procedures to ensure
products are released only with full quality control clearance
-- Quality policies, procedures and performance reviewed regularly by the
Corporate Responsibility Committee
-- Immediate response Recall Committee meets promptly if a recall event
occurs
-- Third-party audit programme supplemented by internal global compliance
audits
-- Regular recall simulation exercises
Consumer concerns and food regulation
Changes in consumer, customer or government attitudes to our products
Our freedom or ability to operate may be affected by changes in consumer or customer attitudes, food law and regulatory changes, political campaigns targeted at specific ingredients or technologies or other factors that may impact the regulatory status or perception of our products or of their functionality, efficacy or use. We must
ensure that the science behind our ingredients (for example, health claims, nutritional impact) is supported by credible sources, clearly communicated and understood by relevant regulatory authorities. Failure to do so may restrict the markets for our products.
Examples of how we manage the risk
-- Global regulatory team, supported by external consultants, monitors
local regulatory requirements affecting our products
-- Global nutrition team initiates and monitors research and publications
concerning the use and functionality of our ingredients and maintains
global network of health and nutrition clinicians, academics and
experts
-- Membership of trade organisations provides access to broader sources
of information and ensures, where appropriate, a single voice for the
industry on regulatory and public interest issues affecting our
ingredients
-- Maintenance of relations with regulatory authorities -- Provision of clear information on ingredients' provenance and
traceability
-- Research Advisory Group, chaired by a non-executive director and
comprising leading scientific experts, reviews critical aspects of the
Group's innovation activities and provides guidance
Government regulations and trade policies (new principal risk this year)
Changes in government regulations and/or trade policies
Government actions or policies causing changes in quotas, tariffs or customs duties, or imposing import/export limitations, or other barriers, may lead to our business incurring additional costs, or may restrict opportunities for growth or prevent our ability to operate in certain markets.
Examples of how we manage the risk
-- Programme in place to ensure that we actively engage in discussions
with political parties, influencers and regulatory authorities in the
main countries we operate in
-- Active member of relevant industry trade associations -- Model in place enabling production across the plant network to be
adapted or optimised in the event of market restrictions in certain
countries
-- Operation of a global plant network means customers can be served from
different countries if products from certain markets are restricted or
become economically less attractive
-- Continue to invest in resources and infrastructure across
differentmarkets and geographies to diversify business mix
Financial controls
Maintain an effective system of internal financial controls
Without effective internal financial controls, we could be exposed to financial irregularities and losses from acts which could have a significant impact on the ability of the business to operate. We must safeguard business assets and ensure the accuracy and reliability of our records and financial reporting.
Examples of how we manage the risk
-- Financial policies and standards are in place supported by procedures
for key financial processes, for example, capital expenditure
-- Financial risks are monitored and managed through a number of forums,
for example, the regional Control Environment Councils
-- Chief Executive and Chief Financial Officer undertake detailed
quarterly business and financial reviews
-- Process controls were reviewed during the year for existence and
effectiveness
-- Automated controls are built into systems where possible
APPIX B
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the directors, whose names and functions are listed on pages 52 to 55, confirm that, to the best of his or her knowledge:
-- The Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders
to assess the Company's and the Group's position and performance,
business model and strategy
-- The Group Financial Statements, which have been prepared in accordance
with IFRSs as adopted by the EU, 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 UK GAAP (United Kingdom Accounting Standards,
comprising FRS 101 'Reduced Disclosure Framework' and applicable law)
give a true and fair view of the assets, liabilities, financial
position and profit of the Company
-- The Strategic Report and the Directors' Report include a fair review
of the development and performance of the business and the position of
the Group and the Company, together with a description of the
principal risks and uncertainties that it faces.
APPIX C
RELATED PARTY DISCLOSURES
Identity of related parties
The Group has related party relationships with its joint ventures and associates, the Group's pension schemes and with key management, being its Directors and executive officers. No related party transaction with close family members of the Group's key management occurred in the current or comparative year.
Subsidiaries, joint ventures and associates
Transactions entered into by the Company, Tate & Lyle PLC, with subsidiaries and between subsidiaries as well as the resultant balances of receivables and payables are eliminated on consolidation and are not required to be disclosed. Transactions and balances with and between joint ventures are as shown below. There are no such transactions with associates.
In the year ended 31 March 2017, the Group disposed of, and therefore ceased to have related party transactions with two of its subsidiaries. The Group disposed of its equity interest in Jiangsu Tate & Lyle Howbetter Food Co., Ltd., its Food Systems business in China. The Group also completed the disposal of its interest in its corn wet mill in Casablanca, Morocco. There were no other material changes in related parties or in the nature of related party transactions during the year. Further details can be found in Note 34.
In the year ended 31 March 2016, the Group re-aligned its Eaststarch joint venture and therefore ceased to have related party transactions with it.
Year ended 31 March 2017 2016 GBPm GBPm Sales of goods and services - to joint ventures 133 137 Purchases of goods and services - from joint ventures - 132 At 31 March 2017 2016 GBPm GBPm Receivables - due from joint ventures 24 12 Payables - due to joint ventures - -
The Group had no material related party transactions containing unusual commercial terms in the current or prior year.
Key management compensation is disclosed in Note 10. There were no other related party transactions with key management.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170619005874/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
June 19, 2017 11:21 ET (15:21 GMT)
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