REG-FirstGroup PLC: Annual Report 2016 and Notice of AGM <Origin Href="QuoteRef">FGP.L</Origin> - Part 2

FirstgroupAnnouncement

20/06/2016 16:45

- Part 2: For the preceding part double click  ID:nPRrK84E2a 

boards and the Board.                                                                               Some localised tightening of employment markets, particularly for First Student.                                                                                                                                                                                 
 pressure 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, both in 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 has previously been subject to attack, and 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 our carbon 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. 
 
 Further information, FirstGroup plc: 
 
 Faisal Tabbah, Group Investor Relations Manager 
 
 Stuart Butchers, Group Head of Media 
 
 Tel: +44 (0) 20 7725 3354 
 


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