Risk Management        
 

The board has overall responsibility for the group’s system of internal controls and for monitoring its effectiveness. The requirement in respect of internal financial controls is extended to cover all controls, including financial, operational, compliance and risk management.

 

An ongoing process for identifying, evaluating and managing the significant risks faced by the group was put in place in 2001. This has included a review of the risks and prioritisation of those risks identified together with mitigation steps. The process is reviewed regularly by the board and is in accordance with the Turnball requirements.

 

The board recognises its responsibility to ensure that a system of internal control which is appropriate to the business environments in which the group operates is in place.

           
           
  Internal Control Frameworks   Shareholder Relationships   Health and Safety

The following control frameworks are in place:
  • Financial information:
    The group has a comprehensive system for reporting financial results to the board; The preparation of comprehensive annual budgets and business plans integrating both financial and operational performance objectives and plans, with an assessment of the associated business and financial risks, for each area of the business. The overall Group budget and business plan is subject to approval by the Board.; monthly results are prepared for each operating unit with a comparison against budget. The board reviews these for the group as a whole and determines appropriate action;
    weekly revenue reports are produced and reviewed by management.
  • Quality and integrity of personnel:
    An organisational structure with formally defined lines of responsibility. Authorisation limits have been set throughout the Group and these are reviewed on a regular basis.
  • Operating unit financial controls:
    Key controls over major financial risks include reviews against performance indicators and exception reporting. The operating units make regular assessments of their exposure to major financial risks and the extent to which these are controlled.
  • Computer systems:
    The group has established appropriate controls over security of data held on computer systems and has put in place disaster recovery arrangements.
  • Control over central functions:
    A number of the group’s key functions, including treasury and taxation, are dealt with centrally and are required to be reported to the board on a monthly basis.

 

The Company is active in communicating with both its institutional and private shareholders. Effective communication
with institutional shareholders and analysts is established through presentations involving the Chief Executive Officer and
the Finance Director.

The Board use the Annual General Meeting to communicate with private shareholders and seek their participation.

The Notice of the Annual General Meeting is circulated more than 20 working days prior to the meeting.

 

It is the policy of the group to conduct all business activities in a responsible manner free from the recognised hazards and to respect the environment, health and safety of its employees, customers, suppliers, partners, neighbours and the wider community.