TIDMBAB
RNS Number : 4842Q
Babcock International Group PLC
17 June 2015
Babcock International Group PLC ('the Company') - Annual Report
and AGM Documents
Copies of each of the following documents have today been posted
or otherwise made available to shareholders and copies have been
submitted to the National Storage Mechanism and will shortly be
available for inspection at: www.morningstar.co.uk/uk/NSM.:-
1. Annual Report and Accounts for the year ended 31 March 2015
2. Notice of Annual General Meeting to be held on 30 July 2015
3. Form of Proxy
Copies of the above documents (excluding the Form of Proxy) are
also available on Babcock International Group PLC's website,
www.babcockinternational.com.
Albert Dungate
Company Secretary
Babcock International Group PLC
17 June 2015
Compliance with Disclosure and Transparency Rule 6.3.5 ("DTR
6.3.5") - Extract from the 2015 Annual Report and Accounts
The information set out below is extracted from the Company's
Annual Report and Accounts 2015 (page references are to pages in
the Annual Report) and should be read in conjunction with the
Company's Full Year Results 2015 announcement issued on 18 May
2015. Both documents can be found at www.babcockinternational.com
and together constitute the material required by DTR 6.3.5 to be
communicated to the media in unedited full text through a
Regulatory Information Service. This material is not a substitute
for reading the Company's Annual Report 2015 in full.
Principal risks and management controls
The following report is extracted from pages 60 to 69 of the
Annual Report and Accounts.
How Babcock manages risk
Babcock has an established, formal process that aims to identify
and evaluate risks and how they are to be managed. A range of
internal control processes is in place as part of the risk
management regime. The Board, principally through the Audit and
Risk Committee, keeps under review the risks facing the Group and
the controls and mitigation plans in place that are intended to
manage and reduce their potential impact and ensure, so far as
possible, that the assets and reputation of the Group are
protected.
The Group's risk management and internal control systems can,
however, only seek to manage, not eliminate, the risk of failure to
achieve business objectives, as any system can only provide
reasonable, not absolute, assurance against material misstatement
or loss.
Principal risks, risk mitigation and controls
The risks and uncertainties described on pages 64 to 69 below
are those that the Board currently considers to be of greatest
significance to Babcock in that they have the potential materially
and adversely to affect Babcock's business, the delivery of its
strategy and/or its financial results, condition or prospects. For
each risk there is a short description of the Company's view of the
possible impact of the risk on the Group should it occur, and the
mitigation and control processes in place to manage the risk (which
should be read in conjunction with the information above about our
risk management approach and general controls).
Babcock is, however, a large and developing group of businesses,
and factual circumstances, business and operating environments will
change with new risks being identified or the evaluation of the
significance of existing risks changing or being better appreciated
and understood. This means that the risks identified below are not
and cannot be an exhaustive list of all significant risks that
could affect the Group.
Risks and uncertainties which might affect businesses in general
and that are not specific to the Group are not included, but
Babcock, of course, faces such risks as well.
Our customer profile
Issue
We rely heavily on winning and retaining large contracts with a
relatively limited number of major customers.
Many of our major customers are (directly or indirectly) owned
or controlled by government (national or local) and are (wholly or
partly) publically funded.
Our single biggest customer is currently the UK Ministry of
Defence (the MoD).
These customers are affected by political and public spending
decisions.
Commercial customers are also affected by conditions in their
market sector which affect their levels of and priorities for
spending.
Risk Description
Policy changes (following a change of political administration
or otherwise) and spending constraints on customers are material
factors for the Group's business and outlook.
The UK Government is due shortly to commence its next
five-yearly Strategic Defence and Security Review and also a
Comprehensive Spending Review, the outcomes of which may have short
or longer-term implications for our business with the MoD.
Whilst the Board believes that policy changes, spending reviews
and restraints can offer significant opportunities to the Group to
assist in the delivery of more services to customers efficiently
and at lower cost, these factors inevitably also carry risk.
Large customers, whether public or private sector, have
significant bargaining power and the ability (contractual or
otherwise) to cancel contracts without, or on, short notice, often
without cause, or they can exert pressure to renegotiate them in
their favour.
Potential Impact
Periods of uncertainty as to the course of customer policy and
spending can result in the delay, suspension or withdrawal of
tendering processes and the award of contracts.
Whilst customer policy changes or spending constraints can
potentially offer more outsourcing opportunities for us to pursue,
they can also be a risk in that they could lead to changes in
customer outsourcing strategy and spend which could include:
- reductions in the number, frequency, size, scope,
profitability and/or duration of future contract opportunities;
- in the case of existing contracts, early termination,
non-extension or non-renewal or lower contract spend than
anticipated and pressure to renegotiate contract terms in the
customer's favour;
- favouring the retention or return in-house of service
provision either generally or in the sectors in which we
operate;
- favouring small or medium-sized suppliers or adopting a more
transactional rather than co-operative, partnering approach to
customer/supplier relationships; and
- imposing new or extra eligibility requirements as a condition
of doing business with the customer that we may not be able readily
to comply with or that might involve significant extra costs
impacting the profitability of doing business with them.
Mitigation*
We have extensive and regular dialogue with key customers,
involving, as appropriate, our Chief Executive, Divisional Chief
Executives and/or other members of the senior management team.
We actively monitor actual and potential political and other
developments and spending constraints that might affect our
customers' demand for our services.
We aim to be innovative and responsive in helping customers meet
their needs and challenges.
The nature of our contracts, bid processes and our major
markets
Issue
We seek to win relatively long-term contracts for the provision
of complex and integrated services to our customers.
Bidding for these contracts typically involves following a
protracted and detailed tendering process, often under public
procurement rules.
There are typically only a relatively limited number of
customers in each of the market sectors we serve.
The contracts we bid for often entail a substantial transfer of
risk from the customer to the supplier.
Risk Description
Bidding requires a substantial investment in terms of manpower
resource and is very expensive. Bids can be subject to
cancellation, delays or changes in scope.
Contract award decisions made under public procurement rules can
be subject to legal challenge by losing bidders.
Given the size and often long-term nature of the contracts we
bid for and the relatively limited numbers of customers in the
markets we serve, significant contracting opportunities tend not to
arise on a regular or frequent basis.
When we are bidding for such contracts we have to price for the
long term and for risk transfer, and the scope for later price
adjustment may be limited or not exist.
Our contracts typically impose strict performance conditions and
use key performance indicators (KPIs) that if not complied with
trigger compensation for the customer and/or may result in loss of
the contract.
Potential Impact
If we lose a bid or a bid process is aborted by the customer or
we withdraw due to scope changes as it progresses, this is a
significant waste of limited resource and substantial expenditure
that has to be written off.
If we win a public procurement bid and this is challenged, this
could lead to delay in contract award, expensive legal proceedings
or the competition having to be re-run.
Not winning a new bid can be a significant missed opportunity
for growth which may not soon be replaced by another.
Not winning rebids could mean the loss of existing significant
revenue and profit streams.
Loss of bids or rebids can adversely impact the strategic
development of the Group.
If we underestimate or under-price actual risk exposure or the
cost of performance this could significantly and adversely affect
our future profitability, cash generation and growth.
Compensation to the customer for poor KPI performance could
significantly impair profitability under the contract and damages
following termination could be substantial.
Mitigation*
We have a clear business strategy to target a large-bid pipeline
and will only tender bids for contracts we consider have a clear
alignment with the Group strategy and in which the Company stands a
realistic chance of success.
There are formal and rigorous reviews and gating processes that
are held at key stages of each material bid that are intended to
reduce the risk of underestimating risks and costs and ensure that
limited bid resources are appropriately targeted at opportunities
that we consider have the best prospects for winning or retaining
business.
Group policies and procedures set a commercial, financial and
legal framework for all bids.
Contractual performance is continually under review (at a
business unit, divisional and/or senior Group executive level as
appropriate) with a view to highlighting at an early stage risks to
delivery and profitability.
Reputation
Issue
Given the nature of our customers and the markets in which we
operate our reputation is our fundamental business asset.
Our businesses include activities that have a high public
profile and/or if they were to involve adverse incidents or
accidents they could attract a high level of publicity.
Risk Description
We have a relatively limited number of customers and potential
customers in our market sectors and they typically have raised
public profiles.
We are involved in the direct delivery to the public on behalf
of our customers of high-profile and sensitive services or our
services are critical to our customers' ability to discharge their
own public responsibilities or delivery of critical services to
their customers.
Failings or misconduct (perceived or real) in dealing with a
customer or in providing services to them or on their behalf can
substantially damage our reputation with that customer or more
generally. The same would be true of high-profile incidents or
accidents.
Attitudes to the outsourcing of services generally or in a
particular sector can also be adversely affected by the poor
performance or behaviour of other service providers or incidents in
which we are not involved.
As well as our reputation for service delivery our ethical
reputation is key.
Potential impact
Given our dependence on individual major customers and the
relatively narrow customer base in the markets in which we
currently operate, loss of our reputation (whether justified or
not) with a major customer or more generally could put at risk
substantial existing business streams and the prospects of securing
future business from that customer in that or other sectors.
Non-compliance with anti-bribery and corruption laws can result
in debarment from bidding as well as criminal penalties.
Mitigation*
Senior management at Group and divisional level are keenly aware
of reputational risks, which can come from many sources. Our risk
control procedures relating to contract performance, anti-bribery
and corruption, health and safety performance and other matters
that could impact our reputation are described elsewhere on pages
48 to 59.
(See also health, safety and environmental risks below).
Regulatory and compliance burden
Issue
Our major businesses are dependent on being able to comply with
applicable customer or industry-specific requirements or
regulations.
Risk Description
The cost of compliance can be high.
Requirements can change.
Compliance with some regulatory requirements is a precondition
to being able to carry on a business activity at all. For
example:
- Our Mission Critical Services business is subject to a high
degree of regulation relating to: aircraft airworthiness and
certification and also to ownership and control requirements (for
example, European air operators must be majority owned and
controlled by European Economic Area nationals - see page 122 for
more information).
- Our civil and defence-related nuclear businesses operate in a
highly-regulated environment.
Potential Impact
Failure to maintain compliance with applicable requirements
could render the business unable to continue providing services and
result in the loss of substantial business streams (and possible
damages claims) and opportunities for future business.
A change in requirements could entail substantial expenditure
which may not be recoverable (either fully or at all) under
customer contracts.
Mitigation*
We seek to maintain a clear understanding of ongoing regulatory
requirements and to maintain good working relationships with
regulators.
We have suitably qualified and experienced employees and/or
expert external advisers to advise and assist on regulatory
compliance.
We have management systems involving competent personnel with
clear accountabilities for operational regulatory compliance.
Our Articles of Association empower us to take steps to protect
European air operating licences if necessary by controlling the
level and/or limiting the rights of non-European Economic Area
owners of our shares (see pages 122 to 124 for more
information).
Health, safety and environmental
Issue
Some of our operations entail the potential risk of significant
harm to people, property or the environment.
Risk Description
Many of our businesses involve working in potentially hazardous
operations or environments which need to be properly managed and
controlled to minimise the risk of injury or damage.
Some, for example, the mission critical operations of our
helicopter services, involve an inherent degree of risk that is
compounded by the nature of the services provided (offshore oil and
gas crew change services, fire-fighting, search and rescue, air
ambulance and emergency services) or the environments in which they
operate (low altitude flying in adverse weather, terrains or
operational conditions).
Potential Impact
Serious accidents can have a major impact on the lives of those
directly involved and on their families, friends, colleagues and
community, as can serious environmental incidents.
To the extent that we have caused or contributed to an incident
as a result of failings on our part, or because as a matter of law
we would be strictly liable without fault, the Group could be
exposed to substantial damages claims, not all of which exposure
may be insured against, and also to criminal proceedings which
could result in substantial penalties.
Such incidents (which may have a high public profile given the
nature of our operations) may also seriously and adversely affect
the reputation of the Group or its brand (whether that would be
justified or not), which could lead to a significant loss of
business or future business opportunities.
Mitigation*
Health, safety and environmental performance receive close and
continuous attention and oversight from the senior management
team.
We have specific health, safety and environmental governance
structures in place and extensive and ongoing education and
training programmes for staff.
The Board receives half-yearly reviews of health and safety and
environmental performance and the management reports tabled at each
of its meetings address health, safety and environment on an
ongoing basis.
We believe we have appropriate insurance cover against civil
liability exposures.
Nuclear risks: we believe, having regard to the statutory regime
for nuclear liability in the UK, the terms on which we do nuclear
engineering business and the terms of indemnities given to us by
the UK Nuclear Decommissioning Authority and the UK MoD in respect
of the nuclear site licensee companies in which we are interested,
that the Group would have adequate protection against any risk of
liability for injury or damage caused by nuclear contamination or
incidents.
People
Issue
Our business delivery and future growth depends on our ability
adequately and successfully to plan for management succession and
for our continuing and future need to recruit, develop and retain
experienced senior managers, business development teams and
highly-skilled employees (such as suitably qualified and
experienced engineers, technicians, pilots and other specialist
skills groups).
Risk Description
Competition for the skilled and experienced personnel we need is
intense and they are likely to remain in limited supply for the
foreseeable future. This poses risks in both recruiting and
retaining such staff.
Potential Impact
Losing experienced senior managers for any reason without plans
for their replacement could have a material adverse effect on the
prospects for, or performance of, the Group and the delivery of our
strategy.
If we have insufficient experienced business development or
bidding personnel this could impair our ability to achieve
strategic aims and financial targets or to pursue business in new
areas.
If we have insufficient qualified and experienced employees this
could impair our service delivery to customers or our ability to
pursue new business, with consequent risks to our financial
results, growth, strategy and reputation and the risk of contract
claims.
The cost of recruiting or retaining the suitably qualified and
experienced employees we need might increase significantly
depending on market conditions and this could impact our contract
profitability.
Mitigation*
We give a high priority and devote significant resources to
recruiting skilled professionals, training and development,
succession planning and talent management.
The Board, Nominations Committee and Group Executive Committee
regularly receive reports on and/or discuss these matters.
Apprentice and graduate recruitment programmes are run
throughout all divisions.
Further information about this subject and how we address it is
on page 56 of this Annual Report.
International business
Issue
As we expand outside the UK our financial results are
increasingly exposed to the impact of currency exchange rates.
Risk Description
We prepare our consolidated results in Sterling and translate
the value of assets, liabilities and turnover reported or accounted
for in non-Sterling currencies.
Exchange rate movements can therefore affect the Sterling
financial statements and results of the Group.
Expenses or commitments may be incurred in a currency that is
different from the related turnover or income needed to discharge
them.
Non-Sterling currencies to which we are currently most exposed
are the Euro and South African Rand.
Potential Impact
If the currencies in which our non-UK business is conducted are
weak or weaken against the value of Sterling this will adversely
affect our reported results and the value of any dividend income
received by the Company from non-UK operations.
If the cost of an operation or a contractual commitment is
denominated or incurred in a currency different from the currency
of the income received from that operation or that is being relied
on to discharge that commitment, movements in exchange rates can
reduce the profitability of the operation and increase the
effective cost of discharging the commitment.
Mitigation*
We seek to mitigate exposure to movements in exchange rates in
respect of material foreign currency denominated transactions (for
example, through use of derivative instruments).
Although we do not use these to hedge against the currency
effect in translating for our financial statements the net assets
and income of non-UK subsidiaries and long-term equity accounted
investments, we maintain foreign currency borrowings to limit, in
part, the net foreign currency exposure.
IT and security
Issue
Our ability to deliver secure IT and other information assurance
systems to maintain the confidentiality of their sensitive
information is a key factor for our customers.
During the coming year the Group expects to implement a new
Enterprise Resource Planning (ERP) system for the 'back office'
within two of our four divisions.
Risk Description
Despite controls designed to protect such information, there can
be no guarantee that security measures will be sufficient to
prevent all risk of security breaches or cyber-attacks being
successful in their attempts to penetrate our network security and
misappropriate confidential information. The risk of loss of
information or data by other means is also a risk that cannot be
entirely eliminated.
Installing major new IT systems carries the risk of key system
failures and disruption.
Potential Impact
A breach or compromise of IT system security or security at a
physical site could lead to loss of reputation, loss of business
advantage, disruptions in business operations and inability to meet
contractual obligations and have an adverse effect on the Group's
ability to win future contracts and, as a result, on our results of
operations and overall financial condition.
Failure adequately to plan and resource the implementation of
the intended new ERP systems or difficulties experienced in doing
so could cause both trading and financial reporting difficulties
that could be material.
Mitigation*
We have made and will continue to make significant investment in
enhancing IT security and security awareness generally.
We have formal security and information assurance governance
structures in place to oversee and manage cyber-security and
similar risks.
The Board receives reports at least quarterly on security and
information assurance matters.
The ERP implementation project is being overseen and closely
monitored by steering and working groups, is regularly reported on
to the Group Executive Committee and will be implemented in a
phased approach (with parallel running of old and new systems for a
while), to what we believe is a realistic timetable.
Pensions
Issue
The Group has significant defined benefit pension schemes.
These provide for a specified level of pension benefits to
scheme members, the cost of which is met from both member and
employer contributions paid into pension scheme funds and the
investment returns made in those funds over time.
Risk Description
The level of our contributions is based on various assumptions,
which are subject to change, such as life expectancy of members,
investment returns, inflation, etc. Based on the assumptions being
used at any time, there is always a risk of a significant shortfall
in the schemes' assets below the calculated cost of the pension
obligations.
When accounting for our defined benefit schemes we have to use
corporate bond-related discount rates to value the pension
liabilities. Variations in bond yields and inflationary
expectations can materially affect the pensions charge in our
income statement from year to year as well as the value of the net
difference between the pension assets and liabilities shown on our
balance sheet.
Potential Impact
Should the assets in the pension schemes be judged insufficient
to meet pension liabilities we may be required to make increased
contributions and/or lump sum cash payments into the schemes. This
may reduce the cash available to meet the Group's other obligations
or business needs, and may restrict the future growth of the
business.
Accounting standards for pension liabilities can lead to
significant accounting volatility from year to year due to the need
to take account of macro-economic circumstances beyond the control
of the Company.
There is a risk that future accounting, regulatory and
legislative changes may also adversely impact on pension valuations
and costs for the Group.
Mitigation*
Continuous strategic monitoring and evaluation by Group senior
management of the assets and liabilities of the pension scheme and,
as appropriate, the execution of mitigation opportunities.
The Company and the scheme trustees have agreed a long-term
investment strategy and risk framework intended to reduce the
impact of the schemes' exposure to changes in inflation and
interest rates.
Longevity swaps have been used to reduce the impact of the
schemes' exposure to increasing life expectancy.
Integration of acquisitions
Issue
The Group has grown and expects to continue to grow through
acquisitions as well as organically, (for example, the recent
acquisitions of Avincis, MacNeillie and Defence Support Group).
Risk Description
The financial benefits of acquisitions may not be realised as
quickly and as efficiently as expected if there is difficulty in
integrating them into the Group.
Potential Impact
If integration difficulties are significant, this could
adversely affect the business, financial condition, results of
operations or prospects of the Group.
The diversion of management attention to integration issues and
other difficulties encountered could adversely affect the Group's
business.
Post-acquisition performance may not meet the financial
performance expected and could fail to justify the price paid,
which could adversely affect the Group's future results and
financial position.
Mitigation*
Integration risk is considered at an early stage as part of the
review of acquisition opportunities and detailed integration
planning takes place before completion of the acquisition.
We believe we have a good track record in and experience of
integrating acquisitions, both large and small.
Related party transactions
The following extract from the Annual Report and Accounts is
Note 36 on pages 179 and 180.
(a) The following related parties either sell to or receive
services from the Group. Loans to joint ventures and associates are
detailed in note 15.
2015 2015
2015 2015 Year end Year end
Revenue Purchases debtors creditor
to from balance balance
GBPm GBPm GBPm GBPm
---------------------------------------------- -------- ---------- --------- ---------
Joint ventures and associates
---------------------------------------------- -------- ---------- --------- ---------
Debut Services (South West) Limited 122.0 - 4.2 -
---------------------------------------------- -------- ---------- --------- ---------
Holdfast Training Services Limited 72.0 0.8 10.2 -
---------------------------------------------- -------- ---------- --------- ---------
Helidax S.A.S 0.3 - - -
---------------------------------------------- -------- ---------- --------- ---------
ABC Electrification Limited 10.7 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
First Swietelsky Operation and Maintenance 9.8 - 3.8 3.5
---------------------------------------------- -------- ---------- --------- ---------
FSP (2004) Limited - 0.8 - -
---------------------------------------------- -------- ---------- --------- ---------
Ascent Flight Training (Management) Limited 1.5 - 0.3 -
---------------------------------------------- -------- ---------- --------- ---------
Advanced Jet Training Limited 1.6 - 0.2 -
---------------------------------------------- -------- ---------- --------- ---------
Rear Crew Training Limited 0.8 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Airtanker Services Limited 12.0 - 1.3 -
---------------------------------------------- -------- ---------- --------- ---------
ALC (Superholdco) Limited 2.3 - - -
---------------------------------------------- -------- ---------- --------- ---------
Naval Ship Management (Australia) Pty Limited 1.7 - 0.2 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future LEP Limited 0.8 0.1 0.4 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV Limited 2.2 - 0.5 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV2 Limited 0.4 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV3 Limited 0.8 - 0.2 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV4 Limited 1.7 - 0.4 -
---------------------------------------------- -------- ---------- --------- ---------
Greenwich BSF SPV Limited 0.1 - - -
---------------------------------------------- -------- ---------- --------- ---------
Cura Classis (UK) Limited 5.2 - - -
---------------------------------------------- -------- ---------- --------- ---------
Cura Classis (US) LLC 5.2 - - -
---------------------------------------------- -------- ---------- --------- ---------
Cura Classis Canada (Hold Co) Inc. 12.2 - - -
---------------------------------------------- -------- ---------- --------- ---------
Cavendish Dounreay Partnership Limited 7.9 0.1 0.9 -
---------------------------------------------- -------- ---------- --------- ---------
Cavendish Fluor Partnership Limited 14.8 0.1 2.5 -
---------------------------------------------- -------- ---------- --------- ---------
Cavendish Boccard Nuclear Limited 1.2 - 0.5 -
---------------------------------------------- -------- ---------- --------- ---------
287.2 1.9 25.9 3.5
---------------------------------------------- -------- ---------- --------- ---------
2014 2014
2014 2014 Year end Year end
Revenue Purchases debtors creditor
to from balance balance
GBPm GBPm GBPm GBPm
---------------------------------------------- -------- ---------- --------- ---------
Joint ventures and associates
---------------------------------------------- -------- ---------- --------- ---------
Debut Services (South West) Limited 139.4 - 0.3 -
---------------------------------------------- -------- ---------- --------- ---------
Holdfast Training Services Limited 76.2 0.1 8.0 -
---------------------------------------------- -------- ---------- --------- ---------
First Swietelsky Operation and Maintenance 10.1 - 1.9 0.5
---------------------------------------------- -------- ---------- --------- ---------
Ascent Flight Training (Management) Limited 1.8 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Advanced Jet Training Limited 1.6 - 0.2 -
---------------------------------------------- -------- ---------- --------- ---------
Rear Crew Training Limited 0.8 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Airtanker Services Limited 5.8 - 0.7 -
---------------------------------------------- -------- ---------- --------- ---------
ALC (Superholdco) Limited 3.2 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Naval Ship Management (Australia) Pty Limited 1.5 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV Limited 1.5 - 0.3 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV2 Limited 0.4 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV3 Limited 0.8 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Lewisham Schools for the Future SPV4 Limited 1.4 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Greenwich BSF SPV Limited 0.2 - - -
---------------------------------------------- -------- ---------- --------- ---------
Cura Classis (UK) Limited 4.1 - - -
---------------------------------------------- -------- ---------- --------- ---------
Cura Classis (US) LLC 6.3 - 0.1 -
---------------------------------------------- -------- ---------- --------- ---------
Cura Classis Canada (Hold Co) Inc. 5.9 - - -
---------------------------------------------- -------- ---------- --------- ---------
Dounreay Site Licence Company 15.1 0.1 - -
---------------------------------------------- -------- ---------- --------- ---------
276.1 0.2 12.2 0.5
---------------------------------------------- -------- ---------- --------- ---------
All transactions noted above arise in the normal course of
business.
(b) Defined benefit pension schemes
Please refer to note 26 for transactions with the Group defined
benefit pension schemes.
(c) Key management compensation is shown in note 8 and in the
Remuneration report.
(d) Transactions in employee benefits trusts are shown in note
24.
Directors' responsibility statement
The following statement is extracted from pages 124 and 125 of
the Annual Report and Accounts.
The Directors are responsible for preparing the Annual Report
and Accounts including the Group's and the Company's financial
statements in accordance with applicable law and regulations.
UK company law requires the Directors to prepare financial
statements for each financial year. In accordance with that law,
the Directors have prepared the Group's financial statements in
accordance with International Financial Reporting Standards (IFRS)
(as adopted in the European Union), and the Company's financial
statements in accordance with UK Generally Accepted Accounting
Practice (UK GAAP). The Group's and the Company's financial
statements are required by law to give a true and fair view of the
state of affairs of the Group and the Company and of the profit or
loss of the Group for that year. In preparing those 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, for the Group financial statements, whether applicable
IFRSs as adopted by the European Union have been followed, subject
to any material departures disclosed and explained in the financial
statements;
- state, for the Company's financial statements, whether
applicable UK Accounting Standards have been followed, subject to
any material departures disclosed and explained in the Company's
financial statements; and
- prepare the financial statements on the going concern basis,
unless it is inappropriate to presume that the Company will
continue in business.
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 Group and the Company, and enable them to
ensure that the Group's financial statements and the Directors'
Remuneration Report comply with the Companies Act 2006 and Article
4 of the IAS Regulation and that the Company's financial statements
comply with the Companies Act 2006. They are also responsible for
safeguarding the assets of the Group and the Company, and hence for
taking reasonable steps for the prevention and detection of fraud
and other irregularities.
Under applicable law and regulation, the Directors are also
responsible for preparing a Strategic report, Directors' report,
Directors' remuneration report and Corporate Governance Statement
that complies with the law and those regulations.
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.
Each of the Directors listed below (being the Board of Directors
at the date of this Annual Report and these financial statements)
confirms that to the best of his or her knowledge:
- the Group financial statements (set out on pages 133 to 182)
which have been prepared in accordance with IFRS as adopted by the
EU, give a true and fair view of the assets, liabilities, financial
position and profit of the Group taken as a whole; and
- the Strategic report and Directors' report contained on pages
2 to 125 includes a fair review of the development and performance
of the business and the position of the Group, together with a
description of the principal risks and uncertainties that it
faces.
In addition, each of the directors listed below considers that
the Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Company's performance, business model
and strategy.
Mike Turner Chairman
----------------- --------------------------
Peter Rogers Chief Executive
----------------- --------------------------
Franco Martinelli Group Finance Director
----------------- --------------------------
Archie Bethel CEO, Marine and Technology
----------------- --------------------------
Kevin Thomas CEO, Support Services
----------------- --------------------------
Bill Tame CEO, International
----------------- --------------------------
John Davies CEO, Defence and Security
----------------- --------------------------
Sir David Omand Non-Executive Director
----------------- --------------------------
Ian Duncan Non-Executive Director
----------------- --------------------------
Kate Swann Non-Executive Director
----------------- --------------------------
Anna Stewart Non-Executive Director
----------------- --------------------------
Jeff Randall Non-Executive Director
----------------- --------------------------
Myles Lee Non-Executive Director
----------------- --------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Babcock (LSE:BAB)
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Babcock (LSE:BAB)
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から 7 2023 まで 7 2024