REG-FirstGroup PLC: Annual Financial Report <Origin Href="QuoteRef">FGP.L</Origin> - Part 2
15/06/2017 17:00
- Part 2: For the preceding part double click ID:nPRrFF6FDa
Labour costs, employee relations, recruitment and retention Employee costs represent the largest component of the Group’s operating costs, and political or union pressure The Group seeks to mitigate these risks via its recruitment and retention policies, training schemes and working practices. Our working practices include building communication and engagement with trade unions and the wider workforce. Examples of this engagement include regular leadership conferences, employee surveys and the presence of Employee Directors (Directors voted for by the employees to represent them) on many of the Group’s UK divisional boards and the Board. Where increased wages and incentives are necessary to attract and retain employees, those extra costs are factored into our bid models, where possible, to ensure appropriate returns are achieved. No material change during the year
to increase wages could increase these costs. Competition for employees, particularly in an improved economic climate, can lead to shortages which increase costs and
affect service delivery. High employee turnover could lead to higher than expected increases in the cost of recruitment, training and employee costs and operational
disruption. Similarly, industrial action could adversely impact customer service and have a financial impact on the Group’s operations.
Disruption to infrastructure/operations Our operations, and the infrastructure on which they depend, can be affected by a number of different external factors, many of We continue to develop and apply good practice, and provide guidance to our employees to help them identify and respond effectively to any potential threat or incident. We maintain close working relationships with specialist government agencies, in relation to terror threats, in both the UK and North America. We employ dedicated security specialists in the UK and North America. The geographic spread of the Group’s businesses offers some protection against specific incidents. In addition, some of our contract-based businesses have force majeure clauses in place. We have severe weather action plans and procedures to manage the impact on our operations. The Group continues to target reductions in our emissions, including through behaviour change initiatives and investment in new technology. No material change during the year.
which are not within our control. These factors include terrorism, adverse weather events and potentially climate change or pandemics. The threat from terrorism is
enduring and continues to exist in all of our markets. Public transport continues to be regarded as an attractive and viable target, and has previously been subject to
attack. Across our businesses, we take all reasonable steps to help guard against such activity on the services we operate. An attack, or threat of attack, could lead to
reduced public confidence in public transportation, and/or specifically in the Group’s security and safety record and could reduce demand for our services, increase costs
or security requirements and cause operational disruption. Greater and more frequent adverse weather could lead to interruptions or disruption to service performance and
reduced customer demand with consequent financial impact, potential increased costs and accident rates. As a leading transport provider, we face the challenge of
addressing climate change, both through managing its impact and reducing emissions.
The risks listed are not all of those highlighted by our risk management
processes and are not set out in any order of priority. Additional risks and
uncertainties not presently known to us, or currently deemed to be less
material, may also impact our business. Indication of a movement in a risk may
not indicate a change in the overall net risk position after taking into
account risk mitigations.
Statement of Directors’ responsibilities in respect of the annual report and
the financial statement
The following responsibility statements are extracted from the Statement of
Directors' responsibilities in respect of the annual report and the financial
statements on page 84 of the 2017 Annual Report and are repeated here solely
for the purpose of complying with DTR 6.3.5R. The statements relate to the
2017 Annual Report and not to the extracted information presented in this
annual financial report announcement or the final 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 financial
statements for each financial year. Under that law the Directors are required
to prepare the Group financial statements in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the European Union and
Article 4 of the IAS Regulation and have chosen to prepare the parent company
financial statements in accordance with applicable UK Accounting Standards,
including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’
(FRS 101) and applicable law.
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 Company and of the profit or loss of the Company for that
period. In preparing the parent company financial statements, the Directors
are required to:
*
select suitable accounting policies and then apply them consistently;
*
make judgements and accounting estimates that are reasonable and prudent;
*
state whether applicable UK Accounting Standards, including FRS 101, have been
followed, subject to any material departures disclosed and explained in the
financial statements; and
*
prepare the financial statement on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
In preparing the Group financial statements, International Accounting Standard
1 requires that Directors:
*
properly select and apply accounting policies;
*
present information including accounting policies, in a manner that provides
relevant, reliable, comparable and understandable information;
*
provide additional disclosures when compliance with the specific requirements
in IFRSs are insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the entity’s
financial position and financial performance; and
*
make an assessment of the Company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the 2006 Act.
They are also responsible for safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and detection of fraud and
other irregularities, and have adopted a control framework across the Group.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
responsibility statement
Each Director confirms to the best of his or her knowledge that:
*
the financial statements, prepared in accordance with the relevant financial
reporting framework, 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 and Governance section include a fair review of the
development and performance of the business and the position of the Company
and the undertakings including in the consolidation taken as a whole, together
with a description of the principal risks and uncertainties that they face;
and
*
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 and the Group’s position and performance, business
model and strategy.
Matthew Gregory
Chief Financial Officer
RELATED PARTY TRANSACTIONS
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Remuneration of key management personnel
The remuneration of the Directors, which comprise the plc Board who are 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. Further
information about the remuneration of individual Directors is provided in the
Directors’ remuneration report on pages 63 to 79.
31 March 31 March
2017 2016
£m £m
Basic salaries (1) 1.6 1.6
Performance-related bonuses 0.5 0.3
Benefits in kind 0.0 0.1
Fees 0.6 0.6
Share-based payment 0.8 0.3
3.5 2.9
(1) Basic salaries include cash emoluments in lieu of retirement benefits and
car and tax allowances.
Further information, FirstGroup plc:
Faisal Tabbah, Group Head of Investor Relations
Stuart Butchers, Group Head of Media
Silvana Glibota-Vigo, Deputy Company Secretary
Tel: +44 (0) 20 7291 0505
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