REG - Balfour Beatty PLC - Doc re. Annual Financial Report & Notice of AGM <Origin Href="QuoteRef">BALF.L</Origin> - Part 3

Balfour BeattyAnnouncement

11/04/2016 21:26

- Part 3: For the preceding part double click  ID:nRSK8544Ub 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 
 
 Legacy pension liabilities                                                                                                                                                Build to Last pillar:                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Owner:      
 No change to risk                                                                                                                                                         Lean                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The Board   
 Risk descriptionThe Group remains exposed to significant defined benefit pension risks.CausesThe size of historic pension obligations is largely related to the investment What impact it might haveFailure to manage these risks adequately could lead to the Group being exposed to significant additional liabilities.How it is mitigatedThe Group constructively engages with the trustees of the pension funds to ensure that the the funds' assets and liabilities are managed in a way which reduces the likelihood of an unexpected cost to the Company. The Group's main UK fund has hedged over 65% of its exposure to interest rate and inflation      
 performance of the assets held in the pension funds, net of the change in the value of the funds' liabilities. The latter are typically related to changes in the long    movements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 -term outlook for interest rates, inflation and life expectancy.The size of the obligations could also be adversely influenced by intervention from regulators or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 legislators.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 
 
Balfour Beatty also faces significant risks and uncertainties that are common
to many companies - including financial and treasury, communications and
marketing, wider information security, business continuity and crisis
management, and hazard risks." 
 
"Statement of Directors' responsibilities 
 
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulations. 
 
The Directors confirm that to the best of their knowledge: 
 
-   the financial statements, prepared in accordance with IFRS as adopted by
the EU and Article 4 of the IAS Regulation, 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 
 
-   the Strategic 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 they face. 
 
In light of the work undertaken by the Audit and Risk Committee reported in
greater detail on pages 59 to 61 and the internal verification and approval
process which has been followed this year, the Directors are able to state
that the Annual Report and Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders to
assess the Company's position, performance, business model and strategy. 
 
By order of the Board 
 
Andrew Astin 
 
Company Secretary 
 
14 March 2016" 
 
This information is provided by RNS
The company news service from the London Stock Exchange