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TPK Travis Perkins Plc

729.40
-5.60 (-0.76%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Travis Perkins Plc LSE:TPK London Ordinary Share GB00BK9RKT01 ORD �0.11205105
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -5.60 -0.76% 729.40 727.60 727.80 731.80 720.20 731.80 1,009,074 16:35:25
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Lumber, Plywd, Millwork-whsl 4.86B 38.1M 0.1793 40.58 1.55B

Travis Perkins PLC Travis Perkins Plc : Publication Of The Annual Report 2016 And Notice Of Annual General Meeting 2017

07/04/2017 12:01pm

UK Regulatory


 
TIDMTPK 
 
 
   Further to the release of its preliminary results announcement on 2 
March 2017, Travis Perkins plc (the "Company") announces that it has 
today published its Annual Report for the year ended 31 December 2016. 
In addition, the Company announces that the Notice of Annual General 
Meeting 2017 has been sent to shareholders.  The Company's Annual Report 
2016 and Notice of Meeting 2017 can be viewed on the Company's website - 
www.travisperkinsplc.com 
 
   The Annual General Meeting of the Company will take place at 12.00 noon 
on Wednesday 24 May 2017 at Northampton Rugby Football Club, Franklin's 
Gardens, Weedon Road, Northampton NN5 5BG. 
 
   In accordance with rule 9.6.1 of the Listing Rules, 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 
 
 
   -- Annual Report and Accounts 2016; 
 
   -- Notice of Annual General Meeting 2017; and 
 
   -- Proxy Form for the 2017 Annual General Meeting. 
 
 
   A condensed set of the Company's financial statements and information on 
important events that have occurred during the year and their impact on 
the financial statements were included in the Company's preliminary 
announcement on 2 March 2017. That information together with the 
information set out below which is extracted from the Annual Report 
constitute the requirements of Disclosure and Transparency Rule ("DTR") 
6.3.5 which is to be communicated via a Regulatory Information Service 
in unedited full text.  This announcement is not a substitute for 
reading the full Annual Report.  Page and note references in the text 
below refer to page numbers in the Annual Report. To view the 
preliminary announcement, visit the Company's website: 
www.travisperkinsplc.com 
 
   Enquiries: 
 
   Jonathan Diec 
 
   jonathan.diec@travisperkins.co.uk 
 
   +44 (0) 7887 454 584 
 
   Helen O'Keefe 
 
   helen.okeefe@travisperkins.co.uk 
 
   +44 (0) 7392 101 897 
 
   STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES 
 
   For the year ended 31 December 2016 
 
   The Group operates in markets and an industry which by their nature are 
subject to a number of inherent gross risks. The Group is able to 
mitigate those risks by adopting different strategies and by maintaining 
a strong system of internal control. However, regardless of the approach 
that is taken, the Group has to accept a certain level of risk in order 
to generate suitable returns for shareholders and for that reason the 
risk management process is closely aligned to the Group's strategy. 
 
   The Board has a risk reporting framework that ensures it has visibility 
of the Group's key risks, the potential impacts on the Group and how and 
to what extent those risks are mitigated. As part of its risk management 
process, the principal risks stated in the Group's risk register are 
reviewed, challenged and updated by the Board and monitored throughout 
the year. Each operating business within the Group monitors a separate 
risk register. This risk register is used to determine strategies 
adopted by the Group's various businesses to mitigate the identified 
risks and these are embedded in their operating plans. 
 
   Details of the Group's risk management processes are given in the 
Corporate Governance report on page 65. 
 
   In common with most large organisations the Group is subject to general 
commercial risks; for example, political and economic developments, 
changes in the cost of goods for resale, increased competition in its 
markets and the threat of emerging and disruptive competitors, material 
failures in the supply chain, failure to secure supply of goods for 
resale on competitive terms, cyber-security breaches and failure of the 
IT infrastructure. 
 
   The risk environment in which the Group operates does not remain static. 
The nature of risk is that its scope and potential impact will change 
over time. As such the list on pages 38 to 43 should not be regarded as 
a comprehensive statement of all potential risks and uncertainties that 
may manifest themselves in the future. Additional risks and 
uncertainties that are not presently known to the Directors, or which 
they currently deem immaterial, could also have an adverse effect on the 
Group's future operating results, financial condition or prospects. 
 
   The table on pages 38 to 43 sets out, in no particular order, the 
current principal risks that are considered by the Board to be material, 
their potential impacts and the factors that mitigate them. The inherent 
risk (before the operation of control) is stated for each risk area 
together with an indication of the current trend for that risk. 
 
 
 
 
Inherent Risk, Level and Trend                             Risk Description                                                 Impact                                                       Risk mitigation 
Market Conditions                                          The Group's products are sold to businesses, tradesmen           Adverse effect on financial results                          The Board conducts an annual review of strategy, which 
 Inherent Risk: High                                        and retail customers for a broad range of end uses                                                                            includes an assessment of likely competitor activity, 
 Trend: Increasing                                          in the built environment. The Group's markets are                                                                             market forecasts and possible future trends in products, 
                                                            cyclical in nature and the performance of those markets                                                                       channels of distribution and customer behaviour. The 
                                                            is affected by general economic conditions and a number                                                                       Group maintains a comprehensive tracking system for 
                                                            of specific drivers of construction, RMI and DIY activity,                                                                    lead indicators that influence the market for the 
                                                            including mortgage availability and affordability,                                                                            consumption of building materials in the UK. Significant 
                                                            housing transactions and the timing and nature of                                                                             events including those in the supply chain that may 
                                                            government activity to stimulate activity, net disposable                                                                     affect the Group are monitored by the Executive Committee 
                                                            income, house price inflation, consumer confidence,                                                                           and reported to the Board monthly by the Group CEO. 
                                                            interest rates and unemployment.                                                                                              Should market conditions deteriorate then the Board 
                                                            A significant downturn in economic conditions or alternatively                                                                has a range of options dependent upon the severity 
                                                            major uncertainty about the future outlook could affect                                                                       of the change. Historically these have included amending 
                                                            the Group's markets levels of construction activity                                                                           the Group's trading stance, cost reduction, lowering 
                                                            and the confidence levels of the Group's customers,                                                                           capital investment and cutting the dividend 
                                                            which could reduce their propensity to purchase products 
                                                            and services from the Group's businesses. 
Competitive pressures place pressure on prices, margins    Market trends, particularly in respect of customers'             Adverse effect on financial results                          Changes to market practice are tracked on an on-going 
 and profitability                                          preferences for purchasing materials through a range                                                                          basis and reported to the Board each month. The Group 
 Inherent Risk: High                                        of supply channels and not just through the Group's                                                                           is building multi-channel capabilities that complement 
 Trend: Static                                              traditional competitors may affect the Group's performance                                                                    its existing operations and provide its customers 
                                                            so making traditional branch based operations less                                                                            with the opportunity to transact with the Group through 
                                                            relevant or profitable.                                                                                                       channels that best suit their needs. Pricing strategies 
                                                            Increased price transparency could cause customers                                                                            across the Group are regularly reviewed and where 
                                                            to perceive that the Group is less competitive than                                                                           necessary refined to ensure they remain competitive. 
                                                            some other competitors.                                                                                                       The development of new, innovative and competitive 
                                                            Public sector buying groups could reduce sales if                                                                             supply solutions is a key strength of the Group. It 
                                                            public bodies choose to buy direct from manufacturers.                                                                        works closely with customers and suppliers on a programme 
                                                            Disintermediation may become more of a threat if manufacturers                                                                of continuous improvement designed to improve its 
                                                            decide to deal directly with end users. The Group                                                                             customer proposition. The Group's strategy allows 
                                                            faces the risk of new entrants to any of its markets,                                                                         it to use sites flexibly. Alternative space utilisation 
                                                            including from businesses currently operating outside                                                                         models are possible, including maintaining smaller 
                                                            its industry or only in overseas markets.                                                                                     stores and implanting additional services into existing 
                                                                                                                                                                                          branches. 
Information technology capabilities impact the Group's     The Group depends on a wide range of complex IT systems,         Adverse effect on financial results.                         The strategic demands of the business, the resources 
 ability to trade profitably                                both in terms of the availability of hardware and                Adverse effect on the Company's reputation                   available to IT, the performance levels of key systems 
 Inherent Risk: Medium                                      the efficient and effective operation of software.                                                                            and IT security are kept under review by the Executive 
 Trend: Increasing                                          The rapid expansion of the Group together with an                                                                             Committee. Plans that require continual investment 
                                                            increasing demand for IT services, particularly as                                                                            in the IT infrastructure have been approved and are 
                                                            the Group embraces modern platforms such as multi-channel,                                                                    being implemented. Maintenance is undertaken on an 
                                                            updates its point of sale systems and develops its                                                                            on-going basis to ensure the resilience of Group systems, 
                                                            supply chain capabilities, could result in development                                                                        with escalation procedures operating to ensure any 
                                                            programmes being delayed or new IT systems and change                                                                         performance issues are resolved at an early stage. 
                                                            management systems not being successfully implemented.                                                                        The Group's two data centres mirror each other with 
                                                            Should a system become unavailable for an extended                                                                            data processing capable of being switched from one 
                                                            period either through deliberate act or through accidental                                                                    site to the other. An IT disaster recovery plan exists 
                                                            failure it could impact the business' ability to trade.                                                                       together with a business continuity plan. Arrangements 
                                                            Incidents of sophisticated cyber-crime represent a                                                                            are in place for alternative data sites for both trade 
                                                            significant and increasing threat to all businesses                                                                           and consumer businesses. Off-site back-up routines 
                                                            including the Group. A major breach of system security                                                                        are in place. The Group has a data security committee 
                                                            could result in system disruption to systems and /                                                                            responsible for monitoring and maintaining cyber security. 
                                                            or the theft and misuse of confidential data with                                                                             In addition a programme of risk oriented reviews is 
                                                            consequential impacts on the Group's reputation or                                                                            undertaken to ensure the level of control around IT 
                                                            ability to trade.                                                                                                             systems remains robust. The Group has a team in place 
                                                                                                                                                                                          to deliver a comprehensive security architecture to 
                                                                                                                                                                                          protect it from cyber crime. Investments in best of 
                                                                                                                                                                                          breed solutions have been made that continually adapt 
                                                                                                                                                                                          to mitigate the risk associated with the most advanced 
                                                                                                                                                                                          threats. Furthermore, the Information Security team 
                                                                                                                                                                                          has the full support of senior management acting as 
                                                                                                                                                                                          an important gateway to ensure the development of 
                                                                                                                                                                                          new systems is performed according to industry standard 
                                                                                                                                                                                          security practices. 
Colleague recruitment, retention and succession plans      The ability to recruit, retain and motivate suitably             Inability to develop and execute development and succession  The Group's employment policies and practices are 
 do not deliver the required skills and experience          qualified staff is an important driver of the Group's            plans. Competitive disadvantage                              kept under regular review. Staff engagement and turnover 
 Inherent Risk: Low                                         overall performance.                                                                                                          by job type is reported to the Executive Committee 
 Trend: Static                                              The strength of the Group's customer proposition is                                                                           regularly and to the Board regularly. Succession plans 
                                                            underpinned by the quality of people working throughout                                                                       are established for the most senior positions within 
                                                            the Group. Many of them have worked for Travis Perkins                                                                        the Group and these are reviewed annually. The Group's 
                                                            for some considerable time, during which they have                                                                            reward and recognition systems are actively managed 
                                                            gained valuable knowledge and expertise.                                                                                      to ensure high levels of employee engagement. A wide 
                                                            The Group faces competition for the best people from                                                                          range of training programmes are in place to encourage 
                                                            other organisations. Ensuring the retention and proper                                                                        staff development, whilst management development programmes 
                                                            development of employees and succession for key positions                                                                     are available to those identified for more senior 
                                                            is important if the Group is not to suffer an adverse                                                                         positions. Salaries and other benefits are benchmarked 
                                                            effect on future prospects.                                                                                                   regularly to ensure that the Group remains competitive 
                                                                                                                                                                                          and the Group operates incentive structures to ensure 
                                                                                                                                                                                          that high performing colleagues are adequately rewarded 
                                                                                                                                                                                          and retained. 
Supplier dependency could result in shortages of product   The Group is the largest customer to many of its suppliers.      Adverse effect on financial results.                         The commercial and financial teams have established 
 Inherent Risk: Medium                                      In some cases, those suppliers are large enough to               Adverse effect on reputation.                                strong relationships with the Group's key suppliers 
 Trend: Static                                              cause significant supply difficulties to the Group                                                                            and work closely with them to ensure the continuity 
                                                            if they are unable to meet their supply obligations                                                                           of quality materials. To spread the risk where possible 
                                                            due to either economic or operational factors.                                                                                contracts exist with more than one supplier for key 
                                                            Alternative sourcing may be available, but the volumes                                                                        products. The Group has made a significant investment 
                                                            required and the time it may take those suppliers                                                                             in its Far East infrastructure to support its direct 
                                                            to increase production could result in significant                                                                            sourcing operation which allows the development of 
                                                            stock-outs for some considerable time.                                                                                        own brand products, thereby reducing the reliance 
                                                            The Group has become more reliant on overseas factories                                                                       on branded suppliers. Comprehensive checks are undertaken 
                                                            producing products as the Group has rapidly expanded                                                                          on the factories producing products and the quality 
                                                            its direct sourcing capabilities. This has increased                                                                          and the suitability of that product before it is shipped 
                                                            the Group's exposure to sourcing, quality, trading,                                                                           to the UK. 
                                                            warranty and currency issues. 
                                                            There is a potential for European anti-dumping legislation 
                                                            to be extended to encompass further Asian countries 
                                                            which could increase the cost of some imported products. 
Defined benefit pension scheme funding could increase      The Group is required by law to maintain a minimum               Adverse effect on financial condition.                       All of the Group's final salary pension schemes are 
 significantly                                              funding level in relation to its on-going obligations                                                                         closed to new members. For the Travis Perkins scheme, 
 Inherent Risk: Medium                                      to provide current and future pensions for members                                                                            pensionable salary inflation has been capped at 3% 
 Trend: Static                                              of its defined benefit pension schemes.                                                                                       per annum. The schemes' investment policies are kept 
                                                            The level of contributions required from the Group                                                                            under regular review by the trustees in conjunction 
                                                            to meet the benefits promised in the final salary                                                                             with the Group to ensure asset portfolios produce 
                                                            schemes will vary depending upon the funding position                                                                         the desired level of return within an acceptable risk 
                                                            of those schemes.                                                                                                             profile. The Group has agreed deficit reduction payment 
                                                            The funding of pension obligations could increase                                                                             plans for each of its defined benefit pension schemes 
                                                            significantly due to a number of factors including                                                                            with the Trustees of the schemes. The repayment plans 
                                                            poor performance of the pension fund investments,                                                                             will remain in place until the next actuarial valuation, 
                                                            falling corporate bond and gilt yields and increasing                                                                         when in conjunction with the Scheme Trustees they 
                                                            longevity of pension scheme members.                                                                                          will be reassessed to take into account the circumstances 
                                                                                                                                                                                          at the time. In 2015 the Group agreed with the Trustees 
                                                                                                                                                                                          to align future member contributions more closely 
                                                                                                                                                                                          to the cost of the accrual and in so doing capping 
                                                                                                                                                                                          the current service contribution of the Group. Notwithstanding 
                                                                                                                                                                                          this, the Group remains exposed to movements in member 
                                                                                                                                                                                          longevity, the value of pension scheme investments 
                                                                                                                                                                                          and falling corporate bond and gilt rates. 
Future expansion plans are not implemented due to          The Group's strategic plans are predicated on the                Adverse effect on financial results.                         Responsibility for identifying and implementing opportunities 
 the unavailability of funding or do not achieve the        continued expansion of its UK branch network and the                                                                          to expand the Group's operations rests with each of 
 desired sales and profit improvements                      development of its supply chain capabilities.                                                                                 the divisional boards, with capital being deployed 
 Inherent Risk: Low                                         Large scale acquisitions in existing UK markets are                                                                           to those projects giving the best return on capital. 
 Trend: Static                                              unlikely due to the Group's size and the potential                                                                            The Group has identified a significant number of opportunities 
                                                            concerns of the competition authorities to ensure                                                                             for expansion throughout the United Kingdom and continues 
                                                            competitive markets. Therefore the Group will rely                                                                            to develop alternative trading formats that will open 
                                                            on developing smaller scale opportunities, in new                                                                             up additional opportunities in future. The Group continues 
                                                            catchment areas or in new formats within existing                                                                             to invest in its leading supply chain infrastructure. 
                                                            sites or on expanding into adjacent markets in which                                                                          Its capabilities in this area allow it to source directly 
                                                            it does not have a presence.                                                                                                  from manufacturers, offer superior availability to 
                                                            The Group also needs to ensure that funding is available                                                                      customers and operate cost efficient mechanisms to 
                                                            to support its plans. The Group has been reliant on                                                                           deliver products to customers when they most need 
                                                            the banking market for funding, a market that has                                                                             them. It is the responsibility of the treasury function 
                                                            contracted in recent years and which may continue                                                                             to manage the Group's liquidity, funding availability 
                                                            to contract in the future. It has an established bond                                                                         and treasury risk by reference to the policies and 
                                                            issuance capability, but the availability of funds                                                                            plans set out in the board approved funding strategy. 
                                                            from that market at a sensible cost may depend upon                                                                           Regular reporting of a series of key metrics is designed 
                                                            the Group's rating which can be affected by its trading                                                                       to monitor treasury activities and maintain opportunities 
                                                            performance.                                                                                                                  to diversify sources and access suitable funding. 
Business transformation projects fail to deliver the       The Group is undertaking a large number of strategic             Adverse effect on financial results.                         All potentially significant projects are subject to 
 expected benefits, cost more or take longer to implement   projects throughout its business. These projects are                                                                          detailed investigation, assessment and approval prior 
 than expected                                              intended to transform the Group's infrastructure and                                                                          to commencement. Dedicated teams are allocated to 
 Inherent Risk: Medium                                      its information technology systems and to develop                                                                             each project, with additional expertise being brought 
 Trend: Static                                              its supply chain operations and its branch and store                                                                          into the Group to supplement existing resource when 
                                                            networks.                                                                                                                     necessary. All strategic projects are closely monitored 
                                                            By their nature, strategic projects are often complicated,                                                                    by the Executive Committee with regular reporting 
                                                            interlinked and require considerable resource to deliver                                                                      to the Board. 
                                                            them. As a result the expected benefits and the costs 
                                                            of implementation of each project may deviate from 
                                                            those anticipated at their outset. 
Plumbing & Heating business performance adversely          The market supplying boilers to large contract customers,        Adverse effect on financial results.                         A new management team has been appointed to the Plumbing 
 affects Group returns                                      served by the PTS business, is highly competitive,                                                                            & Heating division, which is conducting a fundamental 
 Inherent Risk: High                                        offers low margins and certain manufacturers exercise                                                                         review of all P&H businesses and activities. It is 
 Trend: Increasing                                          a degree of control through disintermediation.                                                                                due to report its findings in August 2017, but in 
                                                            Competition in the plumbing and heating ("P&H") markets                                                                       the meantime greater focus is being placed on developing 
                                                            remains intense, with margins being adversely affected                                                                        the customer proposition ensuring there is a renewed 
                                                            and is likely to continue to be so for the foreseeable                                                                        focus on serving existing customers well, tight management 
                                                            future.                                                                                                                       of operating costs and capital expenditure and ensuring 
                                                            The provision of plumbing and heating product to the                                                                          the basics of ranging and pricing are carefully managed. 
                                                            secondary P&H market, which is undertaken by F & P,                                                                           Projects are underway to tailor branch processes in 
                                                            is becoming increasingly competitive.                                                                                         the PTS business to better meet the needs of contracting 
                                                            Low margins, pressure on sales and a high fixed cost                                                                          customers and improve the customer offer which should 
                                                            base mean the Plumbing and Heating business' profit                                                                           drive an increase in sales. The branch network of 
                                                            could be more muted than some of the Group's other                                                                            the F & P / Primaflow business is going through a 
                                                            businesses.                                                                                                                   major rationalisation programme to better meet the 
                                                                                                                                                                                          needs of customers, whilst reducing costs. 
UKs decision to leave the European Union                   The result of the UK vote to leave the European Union            Adverse effect on financial results.                         It is too early to determine the effect of the decision 
 Inherent Risk: High                                        has caused considerable market uncertainty, which                                                                             to leave, but the Board is closely monitoring market 
 Trend: Increasing                                          has resulted in a significant weakening of sterling                                                                           conditions and will react accordingly. The Board has 
                                                            against the US dollar and the Euro, the main currencies                                                                       already taken steps to reduce some costs, but is carefully 
                                                            used by the Group for imported goods.                                                                                         balancing the current needs of the business against 
                                                            The effect on the Group's operations is unlikely to                                                                           what may or may not occur in the future. The Group 
                                                            become clear until full details emerge about how the                                                                          continues to invest in the business where those investments 
                                                            UK will seek to engineer its exit from the EU and                                                                             are expected to realise acceptable returns, but it 
                                                            the EU responds.                                                                                                              is prepared to reduce activity levels should market 
                                                                                                                                                                                          conditions so dictate. Where the cost of goods increases 
                                                                                                                                                                                          due to the exchange rate deteriorating, the Group 
                                                                                                                                                                                          will seek to pass those price increases through to 
                                                                                                                                                                                          its customers, but its ability to do so will depend 
                                                                                                                                                                                          upon market conditions at the time. 
Legislation                                                The Group is subject to a broad range of existing                Adverse effect on the Company's reputation.                  The Group's legal team is responsible for monitoring 
 Inherent Risk: Medium                                      and evolving governance, environmental, health and               Adverse effect on branch operations.                         changes to laws and regulations that affect the business. 
 Trend: Static                                              safety and other laws, regulations, standards and                Adverse effect on financial performance.                     The Group has policies in place that set out the ways 
                                                            best practices which affect the way the Group operates                                                                        employees and suppliers are expected to conduct themselves. 
                                                            and give rise to significant compliance costs, potential                                                                      Those expectations are widely disseminated using a 
                                                            legal liability exposure and potential limitations                                                                            range of methodologies to ensure colleagues and suppliers 
                                                            on the development of the Group's operations.                                                                                 understand their responsibilities to comply with the 
                                                                                                                                                                                          law and other regulations affecting the Company at 
                                                                                                                                                                                          all times. The Board and the Executive Committee regularly 
                                                                                                                                                                                          monitor compliance with laws and regulations. The 
                                                                                                                                                                                          Group operates a whistleblowing process that allows 
                                                                                                                                                                                          the anonymous reporting of noncompliance with health 
                                                                                                                                                                                          and safety, environmental, bribery and other laws 
                                                                                                                                                                                          and regulations. 
Corporation tax                                            The Group has a number of unresolved disputes with               Adverse effect on the Company's reputation.                  Given the lack of agreement with HMRC about the interpretation 
 Inherent Risk: Low                                         HMRC about the tax treatment of several commercial               Adverse effect on financial performance.                     of key areas of the disputed transactions, coupled 
 Trend: Static                                              transactions undertaken in previous years. Based on                                                                           with the current tax litigation environment and HMRC's 
                                                            legal and tax technical advice the Group claimed GBP72m                                                                       policy for pursuing such a route the Group has recognised 
                                                            of tax benefits in its tax returns over several years                                                                         a GBP20m provision for the disputed amounts claimed 
                                                            and reduced its tax payments accordingly, although                                                                            by HMRC and has not recognised any benefit in its 
                                                            following a change in legislation in 2015, the Group                                                                          income statement for the GBP52m tax legislation required 
                                                            subsequently paid HMRC GBP52m of the amount withheld.                                                                         it to pay to HMRC in respect of the disputed amounts, 
                                                            HMRC have disputed the Group's interpretation of the                                                                          which it hopes will be repaid in future. The Group 
                                                            tax legislation.                                                                                                              has a governance structure that requires specialist 
                                                            Whilst the Group believes it has acted appropriately                                                                          third party technical advice to be obtained on significant 
                                                            when submitting its tax returns, HMRC has the power                                                                           tax treatments before the Board of Directors agrees 
                                                            to levy penalties in circumstances where it believes                                                                          to the tax position to be adopted by the Group. Accordingly, 
                                                            a taxpayer has been negligent.                                                                                                it does not believe that its actions can be considered 
                                                                                                                                                                                          negligent and therefore should the Group's views ultimately 
                                                                                                                                                                                          not prevail it does not believe HMRC will have any 
                                                                                                                                                                                          basis for levying penalties or additional assessments. 
                                                                                                                                                                                          In the event that the Group's view does not prevail, 
                                                                                                                                                                                          interest will be payable on previously unpaid amounts. 
                                                                                                                                                                                          Given the current uncertainty interest has been fully 
                                                                                                                                                                                          accrued in the financial statements. 
 
 
   RELATED PARTY TRANSACTIONS 
 
   The Group has a related party relationship with its subsidiaries, its 
Directors and with its pension schemes (note 27). Transactions between 
Group companies, which are related parties, have been eliminated on 
consolidation and are not disclosed in this note. Transactions between 
the Company and its subsidiaries are disclosed below. In addition the 
remuneration of the Directors, and the details of their interests in the 
share capital of the Company are provided in the audited part of the 
remuneration report on pages 88 to 94. 
 
   The remuneration of the key management personnel of the Group is set out 
below in aggregate for each of the categories specified in IAS 24 
Related Party Disclosures. 
 
 
 
 
                               2016  2015 
                               GBPm  GBPm 
Short-term employee benefits   10.9  10.7 
Post employee benefits          0.2   0.4 
Share-based payments            4.2   4.2 
                               15.3  15.3 
 
   The Company undertakes the following transactions with its active 
subsidiaries: 
 
   -- Providing day-to-day funding from its UK banking facilities 
 
   -- Paying interest to members of the Group totalling GBP21.6m (2015: 
GBP22.5m) 
 
   -- Levying an annual management charge to cover services provided to 
members of the Group of GBP8.4m (2015: GBP8.4m) 
 
   -- Receiving annual dividends totalling GBP330.4m (2015: GBP256.5m) 
 
   Details of balances outstanding with subsidiary companies are shown in 
note 18 and in the Balance Sheet on pages 116 and 117. 
 
   Other than the payment of remuneration there have been no related party 
transactions with directors. 
 
   The Group advanced a total of GBP4.7m (2015: GBP3.5m) to all the Group's 
associate companies in 2016. Operating transactions with the associates 
during the year were not significant. 
 
   DIRECTORS' RESPONSIBILITY STATEMENT 
 
   We confirm that to the best of our knowledge: 
 
   1. The financial statements, prepared in accordance with International 
Financial Reporting Standards as adopted by the EU, 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 
 
   2. The Strategic Report, which is incorporated into the Directors' 
Report, includes a fair review of the development and performance of the 
business and the position of the Company and the undertakings included 
in the consolidation taken as a whole, together with a description of 
the principal risks and uncertainties that they face 
 
   3. The annual report and financial statements taken as a whole, are fair, 
balanced and understandable and provide the information necessary for 
shareholders to assess the Company's position, performance, business 
model and strategy 
 
   Declaration 
 
   We consider that the Annual Report and Accounts, when taken as a whole, 
is fair, balanced and understandable and provides the information 
necessary for shareholders to assess the Group's position, performance, 
business model and strategy. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Travis Perkins PLC via Globenewswire 
 
 
  http://www.travisperkinsplc.co.uk/ 
 

(END) Dow Jones Newswires

April 07, 2017 07:01 ET (11:01 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.

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