REG - SSP Group PLC - AGM Notice, Special Dividend & Share Consolidation <Origin Href="QuoteRef">SSPG.L</Origin> - Part 2
25/01/2018 14:35
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issues are identified. Training sessions are also held in country to ensure compliance with these procedures.
others, food safety, labour, employment, immigration, security and safety, health and safety, competition and antitrust, consumer protection (including data protection),
environment, licensing requirements and related compliance. With a UK parent company, the Group is required to comply with the provisions of the UK Bribery Act and the
new legislation aimed at preventing the facilitation of tax evasion, as well as the local equivalent laws in the territories in which the Group operates. The Group is
required to comply with current data privacy laws, in many of the jurisdictions in which it operates. In the EU, the Company will be subject to the new General Data
Protection Regulation (GDPR) from May 2018. This requires the adoption of stricter data management processes in order to address greater rights for individuals, mandatory
breach reporting and more rigorous compliance obligations. There is a risk that the Group fails to comply with the new rules or to implement adequate processes to
safeguard personal data. This could give rise to larger fines, penalties and civil action from individuals. The preparation of food and maintenance of the Group's supply
chain require a base level of hygiene, temperature maintenance and traceability, and expose the Group to possible food safety liability claims and issues.
13. Execution of outsourcing programmes ↔ The Group fails to execute outsourcing projects effectively resulting in the business as usual being disrupted and the introduction of new third party risks. The Group continues to utilise specialist resources in the business to manage implementation and transition projects and to use external advisors to provide input into the management of risks on such projects. Performance feedback is reported to the Executive Committee on a regular basis and the Risk Committee periodically. The Group has included the outsourcing centres in its Internal Audit review scope. The outsourcing partners are highly reputable and were selected after a rigorous tender process and extensive due diligence.
14. Maintenance/development of brand portfolio ↔ The Group's success is largely dependent upon its ability to maintain its portfolio of proprietary brands as well as the brands of its franchisors, and the appeal of The Group carries out extensive customer research into passengers' needs and continually analyses market trends in order to enhance its brand and concept portfolio on an ongoing basis. The Group continues to strengthen its dedicated brands team to work closely with its partner brands and to enable greater capacity to attract and manage a broader portfolio of external brands.
those brands for clients and customers. The loss of any significant partner brands, the inability to obtain rights to new brands over time or the diminution in the appeal
of partner brands or the Group's proprietary brands could impair the Group's ability to compete effectively in tender processes and ultimately have a material adverse
effect on the Group's business.
15. Cyber threats ↔ The Group becomes exposed to information security and cyber threats e.g. Payment Card Industry Data Security Standards (PCIDSS). The Group continually reviews its business continuity plans for its supply chain, IT disaster recovery, and information security policies and practices to ensure that these meet the changing landscape. The Group's segmental business model and IT systems structure help to ensure that potential cyber attacks arelikely to remain isolated locally rather than impactingthe whole Group.
16. Tax strategy ↔ Risk that reputation is damaged if customers, clients and/or suppliers believe that the Group is engaged in aggressive or abusive tax avoidance. The Group has a tax management policy which is based on Board guidance to adopt a low risk tax strategy.
3. Related Parties
The following is extracted from note 27 to the Group's consolidated financial
statements (on pages 97 to 98).
Related party relationships exist with the Group's subsidiaries, associates
(note 12), key management personnel, pension schemes (note 19) and employee
benefit trust (note 21).
Subsidiaries
Transactions between the Company and its subsidiaries, and transactions
between subsidiaries, have been eliminated on consolidation and are not
disclosed in this note. Where the Group does not own 100% of its subsidiary,
significant transactions with the other investors in the jointly owned
subsidiary (JV partner), other than those listed in note 21, are disclosed in
this note. Sales and purchases with related parties are made at normal market
prices.
Associates
Significant transactions with associated undertakings during the year, other
than those included in note 12, are included in the table below.
2017 2016
£m £m
Purchases from related parties1 (5.4) (4.8)
Management fee income 2.5 1.6
Other income 1.5 0.9
Other expenses2 (6.5) (0.2)
Amounts owed by related parties at the end of the year 4.2 0.7
Amounts owed to related parties at the end of the year (0.8) (4.9)
1 The majority of purchases from related parties relates to purchases from
The Minor Food Group PCL (£4.8m; 2016: £4.8m) which owns 51% of Select Service
Partner Co. Limited.
2 The majority of other costs relate to £5.3m concession fees charged by
Mumbai Airport Private Limited, which owns 14.7% of Mumbai Airport Lounge
Services Private Limited.
The Group has provided a number of guarantees to third parties in respect of
obligations of its associates, relating to, for example, concession
agreements, franchise agreements and financing facilities. In addition,
certain subsidiaries benefit from guarantees provided by the Group's JV
partners to similar third parties (in respect of obligations of the
subsidiaries). These guarantees are consistent with those provided in the
normal course of business in respect of the Group's wholly owned
subsidiaries.
Remuneration of key management personnel
The remuneration of key management personnel of the Group is set out below in
aggregate for each of the categories specified in IAS 24 'Related Party
Disclosures'. The Group considers key management personnel to be the Chief
Executive Officer, Chief Financial Officer and Non-Executive Directors.
2017 2016
£m £m
Short-term employee benefits (4.1) (4.0)
Post-employment benefits (0.4) (0.4)
Share-based payments (2.3) (1.3)
(6.8) (5.7)
This information is provided by RNS
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