G4S - Annual Financial Report

  • 14 Apr 2014 10:50
G4S plc has published its Annual Report and Accounts for the year ended 31 December 2013
G4S Financial Report 2014

Further to the preliminary announcement of its results for the year ended 31 December 2013 which it made on 12 March 2014, G4S plc, the international security solutions provider, announces that it has published its Annual Report and Accounts for the same period.

The full Annual Report and Accounts will be posted to shareholders in due course.  The document includes the notice of the company’s Annual General Meeting which will be held on Thursday 5 June 2014 at 2.00pm BST at The Platinum Suite, ExCel London, One Western Gateway, Royal Victoria Dock, London E16 1XL.  A proxy form for the company’s Annual General Meeting will accompany annual reports posted to shareholders.

The Annual report and Accounts, including the notice of meeting and explanatory notes accompanying it, has been submitted to, and will be available from, the National Storage Mechanism.

A condensed set of the company’s financial statements and extracts of the management report were included in the company’s preliminary final results announcement. 

That information, together with the Appendix to this announcement, which contains additional information which has been extracted from the Annual Report and Accounts for the year ended 31 December 2013, constitutes the material required for the purposes of compliance with the Transparency Rules and should be read together with the preliminary final results announcement.

This announcement should be read in conjunction with and is not a substitute for reading the full Annual Report and Accounts.  Together these constitute the information required by DTR 6.3.5, which is required to be communicated in unedited full text through a Regulatory Information Service. 

References in this announcement to the company’s website are intended to refer only to the specific documents mentioned herein and not to other information available on that website.

APPENDIX

The group’s principal risks and uncertainties:

A description of the principal risks and uncertainties that the company faces is extracted from pages 34 to 41 of the 2013 Annual Report and Accounts.

Managing risk effectively Our aim is to deeply embed risk management disciplines which support effective strategy execution OUR RISKS

The market sectors in which G4S provides security services present unique operational and health and safety risks which must be managed effectively in order to provide value to customers and to protect our employees. The breadth of countries in which G4S operates, together with continuing uncertainty of global economic conditions, also presents financial control and commercial risks similar to those of other multinational companies.

HOW WE MANAGE OUR RISKS

Our risks are captured in a global risk reporting information system. These risks are reviewed and updated twice a year by the operating companies. The Group Executive Committee and Board Risk Committee review the most significant risks on a regular basis and the board regularly reviews the overall impact of these major risks on the group’s activities.

WHAT WE DID IN 2013

As announced by the board in September 2012, G4S started a thorough review of its risk management processes and systems during 2013 and will continue to make further improvements during 2014.

During the year the company established a Board Risk Committee and created a separate risk management function for the group, appointing a group director of risk and programme assurance and a group head of risk. These responsibilities were previously undertaken by the group head of internal audit.

The new Board Risk Committee appointed Deloitte to conduct a review of the group’s risk management processes and then charged the group director of risk and programme assurance to develop a plan to respond to the findings and recommendations. During the year, Regional Risk and Audit Committees were established to be responsible for assessing risk at a regional level and for monitoring the mitigation of risk and addressing internal and external audit matters at a regional level.

WHAT WE WILL DO IN 2014

Regional Risk and Audit Committees will meet quarterly, the first meetings having taken place in January 2014. A new approach to assessing risks has been defined and during 2014 this is being implemented across the business, supported by an updated risk management information system. This system will better support the risk identification, assessment and action tracking process as well as providing enhanced risk reporting at all levels of the group.

As a service business many of our risks stem from the contract bidding, mobilisation and service delivery lifecycle. In the first quarter of 2014, new processes for contract take-on and on-going assurance will be implemented to give greater scrutiny to the delivery of the group’s most complex contracts. Based on contract style, complexity and risk profile, these processes will ensure that, at all stages throughout the lifecycle, expert challenge, oversight and approval are given at regional, group or board level as appropriate.

Our goal in making these changes is to embed more deeply an effective risk management culture to support strategy execution and to provide enhanced governance over critical business decisions.

Enterprise Risk Management Governance Model Operating companies

Our operating companies identify and assess the risks to their business objectives and plan appropriate mitigating actions. These are recorded in our group-wide risk management tool.

Regional Risk and Audit Committees

Risk and Audit Committees in each region meet quarterly to review regional level risks; review progress of mitigating actions; and to review audit reports, financial control status reports, internal financial reviews and balance sheet integrity and any accounting judgements.

Executive Risk Committee

The Executive Risk Committee meets three times per year and considers the group’s principal residual risks and the progress of mitigating actions.

Board Risk Committee

The Board Risk Committee meets three times per year to set the group’s risk appetite; to assess the group’s principal residual risks; and to assess progress on the improvements being made to enterprise risk management.

Board Audit Committee

The Board Audit Committee meets four times per year to ensure that the group’s control framework is operating effectively.

Board Responsibility

The board has the ultimate responsibility for assuring our risk management processes. It reviews our most critical risks and controls, either directly or through its Risk and Audit Committees.

LINES OF DEFENCE

We employ three lines of defence to control and manage risks across the group. The responsibility for the first line sits with the managers of our businesses, whether line management or financial support. The senior management team within each business is responsible for implementing and maintaining appropriate controls across their business to ensure the standards expected by the group, our customers and other stakeholders are met. The business managers are supported by oversight functions at both regional and group level including Risk, Finance and Legal which together make up the second line of defence.

The third line is designed to detect or prevent unexpected outcomes and comprises the group risk and internal audit functions. Together these provide independent assurance over the design and operation of controls. As part of its annual programme of work, the internal audit function conducts regular reviews of risk management processes and gives advice and recommendations on how to improve the control environment.

Our external auditors provide independent oversight of the entire process.

Contract Risk Management Governance Model

Based on financial, legal, reputational and operational risk criteria, the opportunity is referred to the region, group or board for review and approval.

Bid risk assessment

Appropriate challenge is given to the bid’s customer value proposition, commercial terms and risk mitigation strategy. The expected risk
return of the bid is assessed before approval is given or withheld.

Bid approval

Based on the complexity and risk profile of mobilisation, appropriate methodologies and project management resources are applied. Key contractual requirements and risk mitigation strategies are mapped to accountable contract managers.

Contract mobilisation

Based on the commercial scale and level of risk, contracts are subject to regular on-going scrutiny at regional or group level.

On-going contract assurance

Internal audit conducts audits of selected contracts.

Group internal audit

Internal audit conducts audits of selected contracts.

Board Reviews

The board will undertake occasional reviews of the most significant contracts.

What are the key risks faced by G4S?

During January 2014 the Regional Risk and Audit Committees met to agree the regional principal residual risks. These meetings were facilitated by group risk management and identified the risks to each region’s strategic business objectives and to on-going business operations. The meetings were informed by the country level risks recorded in the group’s risk management systems.

Group risk management and the CFO consolidated these risks and identified common themes and regional risks which were material to the group. These group principal residual risks were reviewed and approved by the Executive Risk Committee and the Risk Committee of the board.

The potential impact of each risk was assessed on a 1 to 5 scale against five criteria: strategy, financial, reputation, service delivery, and health and safety, with the highest score being the overall impact.

The likelihood of each risk over the next year, or to three year strategic goals, was also assessed on a 1 to 5 scale. The risks detailed in the following pages are those which in aggregate scored 3.5 or higher on both impact and likelihood. Detailed descriptions are provided of each risk, its movement since last year, its potential impact and the mitigation strategies being employed by the group.

 

   Movement since 2012

   Risk description

   Mitigation

CULTURE & VALUES

There has been a strong emphasis from the board, the CEO and the group executive committee on the importance
of the company’s values underpinning everything we do. Progress has been made in this area, but reinforcing the core values across a diverse and globally spread workforce
takes considerable effort.

G4S provides security to people, premises and valuable assets. In its care & justice services businesses it also provides services which interact with detainees, victims of crime, those on state assistance, vulnerable people and other members of the public. This requires our staff to conduct themselves with the utmost integrity. We operate in 120 countries around the world with a diversity of local and national cultures. These factors mean that having a strong set of corporate values that unite the organisation, deeply embedded in our culture, is of particular importance.

If we fail to behave in accordance with the high standards that we set ourselves there is a risk that
we will not deliver on our commitment to customers, and fail to comply with legislation and international standards. We may also compromise the safety and security of our employees and the assets or people that we are protecting.

This can lead to penalties, failure to renew contracts and ultimately reduced profitability and damage to our global brand and reputation.

We have in place high ethical standards and policies which we expect our staff to observe globally and these are reinforced through awareness and training programmes and monitored through audit, whistle-blowing and trading reviews.

Senior managers’ performance contracts and bonuses are in part based upon adherence to our values. During 2013, our new CEO and the executive
team has reiterated the importance of our values
in delivering customer service and sustainable shareholder value. During 2014 we will be examining our HR processes to ensure that they fully support our values; we are refreshing our whistle-blowing policy; and we will continue to reinforce the group values at every opportunity. Compliance with the values is assessed through performance reviews, trading reviews, business self-assessments and audit.

   Movement since 2012

   Risk description

   Mitigation

HEALTH & SAFETY

There has been a heightened focus by the board, the CEO and the group executive committee on the importance of health
and safety.

The provision of security services, often in hostile or dangerous circumstances across such a broad diversity of countries, presents particular health and safety challenges. The protection of our staff, people in our care and third parties, including the public, is of utmost importance.

The principal health and safety risks are work-related attacks and road traffic accidents. In 2013, 55 (2012: 59) employees lost their lives. We are committed to strengthening our health and safety systems, processes and cultures.

Fatalities and serious injuries to our staff impact not only the individuals concerned, but also their families, loved ones and other dependents.

We have clear standards and policies for health and safety and we monitor key performance indicators from each business, and conduct safety reviews for any business where there have been work-related fatalities.

We also have an incident alert and investigation procedure in place for serious injury or loss of life
and a lessons-learned process to correct any deviations from standards.

In 2014 we are introducing a new value called Safety First to ensure that we are investing in health and safety and are considering safety issues in everything we do in our businesses around the world.

Our specific plans for 2014 include rolling out
the G4S Driving Force Rules across the group, developing on-line health and safety for all senior managers, and continuing our programme of
detailed reviews in countries where there have
been work-related fatalities to ensure we implement all the recommendations from investigations to prevent recurrence.

PEOPLE

G4S’ human resource processes are well established and effective. Nevertheless, there will always be challenges in attracting and retaining employees.

We are a people business and we take great care
to ensure that we employ the best people to deliver quality services to our customers. As the largest employer listed on the London Stock Exchange, employing 618,000 people worldwide, and the largest security solutions provider in the world, our customers choose G4S because of the level of screening, training, integrity and trustworthiness.

In a global and diverse business such as ours, there
are risks associated with recruiting, robust screening, motivating, developing and training, as well as appropriately rewarding and retaining our
critical talent.

Failure to recruit and retain key managers and staff and to motivate and develop them can impact
service delivery, customer retention and business
management, which in turn can adversely affect our financial performance.

We use rigorous recruitment, selection, screening
and induction processes and standards to ensure that we employ the best people, with the right values,
for the requisite roles. Standards are set by group human resources and measured and enforced through a combination of regular staff surveys, country self-assessments, monitoring of regional and country specific KPIs and independent audits: all driving constant improvements in processes.

Attracting and developing the right talent is the key
to our success and we have a process for identifying high potential employees and putting in place career development plans to promote them into more senior positions. We engage our employees through our PRIDE model:

 

   Movement since 2012

   Risk description

   Mitigation

Brand/Reputation

The nature of the services we provide means that we are often in the public eye. However, the issues which have arisen around a number of our high profile contracts over the last two years have undermined the company’s brand and reputation, particularly as a trustworthy strategic supplier to the UK Government.

The company’s brand is well known and associated with high quality security services around the world. However, recent events in the UK had an adverse impact on our reputation, in particular with the UK Government. Furthermore, as detailed in the chief executive’s review, our performance under certain
UK electronic monitoring contracts was referred
to the Serious Fraud Office (SFO).

There is a risk that until our reputation is sufficiently repaired and the SFO investigation concluded, our sales pipeline could be impacted. The first key step to repairing our reputation is rebuilding the confidence
of the UK Government in G4S as a strategic supplier. There is a risk that the changes we are implementing to this end take time to be accepted as sufficient by the UK Government.

We have an on-going programme of corporate renewal. This is supported by the broader changes being made across the group to leadership, governance and contract management and assurance; as well as by the heightened focus on corporate values and ethics. In order to ensure timely progress this programme is being monitored directly by the group executive and the board and being independently reviewed by a firm of accountants on behalf of the
UK Government.

At individual region and country level there is a
strong focus on delivering excellent customer service in order to protect and enhance our local brand
and reputation.

We are investing in the strengthening of our risk management, audit and customer service capacity.

Major Contracts

The company’s strategy is to provide integrated security solutions to customers, which often results in taking on more complex contracts. The company is implementing improvements to bid assessment, programme management and assurance
and new contract management processes. These will take time to bed in.

The group has a number of long-term, complex, high value contracts with multi-national, government or other strategic customers. The company’s growth strategy includes a greater focus on higher value,
and more technology-rich services. This will increase the complexity and individuality of customer requirements and contracts.

For such contracts there are risks to the group accepting onerous contractual terms; mobilising contracts well; transitioning effectively from mobilisation to on-going contract management; delivering to contractual requirements; managing complex billing arrangements; managing contract change control; and managing sub-contractors.

Failure to ensure effective contract take-on, mobilise successfully and manage complex contracts
effectively throughout their lifecycles can impact customer satisfaction, reputation, revenue, cash flow, and profitability.

The company has tightened the criteria and level of scrutiny for regional and group level legal review of complex contracts during the bid cycle.

The group has implemented a standardised
approach to project management for complex mobilisations in the UK, which will be rolled out globally during 2014. External project management resource is utilised in cases when insufficient internal capability is in place. The group is also strengthening
its processes for bid assessment, contract take-on
and on-going contract assurance.

   Movement since 2012

   Risk description

   Mitigation

delivery of core Service lines

Our commitment to delivering sustainable growth and shareholder value is founded
on delivering on our customer commitments. There is a continuous focus on this at the group executive. In addition, through the investments in the service excellence centres
and within the regions and countries, we continued to make improvements in the processes and systems in many of our
core businesses over the course of 2013.

We deliver our core secure solutions services in
100 markets and our core secure cash transportation services in 61 markets. A number of these businesses have been acquired over time, resulting in cultural differences, varying degrees of operational maturity and a multiplicity of information systems.

This can create risks around core operational service delivery and supporting functions. Failure to meet
the service delivery requirements of our customers, because we have not implemented the right solutions or followed appropriate agreed procedures, can
create risks around cash losses; attacks on our staff, subcontractors or third parties; and the non-delivery of the service level agreements and KPIs agreed with our customers.

Additional risks relate to business resilience, control systems, and the availability of critical systems, facilities and people to perform contractually agreed services.

This can lead to financial penalties, and negatively impact customer retention and goodwill, to the detriment of financial performance.

We have developed the G4S Way, which defines best practice processes and standards for all aspects of service delivery with the aim of improving service excellence and margin. The G4S Way is being implemented globally across all our businesses. It sets out requirements for managing contract take-on and mobilisation; completion of risk assessments; management of security assignments at customer
and site levels; and defines service delivery KPIs to measure compliance.

Minimum guidelines have been set for key areas such as control room management; security officer communications; fleet routing and scheduling; resource planning and staff rostering; and escalation procedures for duress/attack/
absence situations.

Recent developments in our secure solutions business include deployment of our core operating system, Saturn, to efficiently match our security officer deployment to customer requirements. In our cash solutions business we have put in place a dedicated risk management team to ensure robust risk analysis and rectification of deviations from our minimum standards. Our countries are required to have business continuity and crisis management plans in place and to test them regularly.

We are also making on-going improvements to
the efficiency and effectiveness of supporting and control systems.

Laws & Regulations

The products and services we provide are subject to the ever-changing legal landscape across the many jurisdictions in which we operate, requiring constant monitoring and
change to ensure compliance.

G4S operates in many jurisdictions globally, within complex and diverse regulatory frameworks.

An additional complexity arises from the extra-territorial reach of some of the legislation to which
the company is subject.

Risks include increasing litigation and class actions especially in the United States; bribery and corruption; obtaining operating licences; complying with local tax regulations; changes to employment legislation; complying with human rights legislation; and new or changed restrictions on foreign ownership. Risk also arises from new or changing regulations which require modification of our processes and staff training.

The necessary changes to ensure continued compliance with applicable laws and regulations, or
not being compliant, have far reaching consequences, including higher costs from claims and litigation; inability to operate in certain jurisdictions, either through direct ownership or joint ventures; loss of management control; damage to our reputation; and loss of customer confidence.

Each country in the group puts in place rigorous compliance policies, standards and controls, including training, to assure adherence to local laws, regulations and licence requirements. We review existing policies in light of changes to legislation and recent case law.

The group has good procedures in place to ensure that our businesses are complying with anti-bribery
& corruption legislation, including self-assessments; a training and awareness programme for staff in sensitive positions; an independent audit of the effectiveness of our procedures; and confidential reporting hotlines.

We build positive constructive relationships with governments and related agencies by engaging in
the legislative process directly and through local trade associations. Our aim is to support governments to craft legislation that achieves its aims in relation to our industry in as efficient and effective a way as possible.

   Movement since 2012

   Risk description

   Mitigation

Growth Strategy

The group has placed a greater emphasis on higher value solution development and sales, underpinned by technology. It will take time to mobilise and build the right capabilities to deliver this strategy.

Our growth strategy is to leverage our expertise
to expand our core service lines into more complex, outsourcing areas which increase long-term customer partnerships; to focus on organic growth opportunities with less reliance on acquisitions; and to leverage
our expertise in security systems technology across key markets.

There are risks that we will fail to optimise our product mix; fail to build the sales and solutions capability we need; fail to leverage our existing expertise and resources into the areas where we
can best achieve organic growth targets; or that
we will under-invest or invest in the wrong areas.

Failing to create higher value solutions that differentiate us from local competitors could impact targeted growth in revenues and margins.

We are investing in sales and business development resources to support growth and to strengthen our solution selling capability.

We have established a single capital pool for all key investments and have revised our investment approval processes to approve only those capital requests
that demonstrate an appropriate balance of risk and return. This is designed to ensure we make the right investments to support the strategy. A revised major bid assessment process has been implemented which will ensure that the key opportunities which underpin our growth strategy are properly positioned, resourced and managed.

Rigorous trading and performance reviews for each business unit enable us to monitor progress against our strategic goals on a periodic basis. Our on-going capability review process will ensure we build the right skills needed to underpin the delivery of the strategy.

Geo-Political

Given the wide range of countries in which the group operates there will always be some with a degree of serious political instability. We take
great care with our operations
in these countries to monitor the situation closely and
respond appropriately.

We operate in 120 countries across the developed and developing world, with wide-ranging government and political systems, differing cultural landscapes, and varying degrees of rule of law; and within conflict and post-conflict zones.

The risk factors range from political volatility, revolution, terrorism, military intervention and insurgency.

The geo-political risks we face impact us in many
ways: the health and safety of our staff and customers; the continued operation of our businesses; and the ability to secure our assets and recover our profits.

We have a great deal of experience of operating in
a wide range of difficult territories. We collaborate with our local partners and/or agents; conduct
early risk assessments before and during security assignments; have robust operating procedures; and work closely with our local and global customers in managing the risks of operating in such environments. We have a global process for assessing the geo-political risks of different countries which determines the types of customers we will serve and the types
of services we will provide.

   Movement since 2012

   Risk description

   Mitigation

Information Security

The sophistication of cyber hackers increases continuously and the heightened high profile reputation of the group in the UK in particular make us a potential target.

G4S has an obligation to safeguard the information that our customers, partners and employees entrust to our care.

Given G4S' high profile, we are at risk of cyber and physical attack by criminal organisations and individual hackers. Whilst we do have strong protection in place, the threat is increasing. If an attempt is successful, our information systems could be compromised or our information disclosed.

A successful attack could result in: censure and fines
by national governments; loss of confidence in the G4S brand and reputation; specific loss of trust by clients, especially those in government and financial sectors; disruption to service delivery and integrity, particularly in cash solutions operations.

G4S has cyber security controls in place to protect information.

In 2013, we appointed a group head of information security who has developed a strategy to improve our information security maturity. This will roll out good practices across all regions and businesses to reduce the likelihood of a successful attack and to increase
the ability of G4S to detect and respond to attacks.

Cash Losses

Through the work of the service excellence centres working with the regions, improvements have been made to processes and systems in many of our cash solutions businesses over the course of 2013.

We have cash solutions businesses spread across
the world responsible for cash held on behalf of our customers. We provide cash transportation from one site to another in high security vehicles, a range of
cash management services including secure storage, counting, reconciliation and sorting of notes for
ATMs, a range of ATM services and secure international transportation of cash and valuables.

There are inherent risks in this business related
to external attacks, internal theft and poor
cash reconciliation.

Cash losses can have a major impact for our customers and ourselves in respect of loss of profit, increased cost of insurance and health and safety considerations for our staff and the public.

Our cash solutions service excellence centre (SEC) works in collaboration with the regions to embed robust procedures into every cash business to mitigate cash losses. Innovative security defence products are
in use, ranging from pavement box tracking to vehicle protection foam and protective pavement boxes.

All cash transactions are subject to strict authorisation limits and we have very tightly controlled cash reconciliation procedures to ensure cash is fully accounted for and controlled and these procedures are subject to constant monitoring and audits. We also have a robust process to monitor all cash-related incidents through a team of security specialists and
we ensure that lessons learned are shared through
the SEC.

 

 

Statement of directors’ responsibilities:

The following responsibility statement is repeated here solely for the purpose of complying with Disclosure and Transparency Rule 6.3.5.  This statement relates to and is extracted from page 83 of the 2013 Annual Report and Accounts.  Responsibility is for the full 2013 Annual Report and Accounts not the extracted information presented in this announcement and the preliminary 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 group and parent company financial statements for each financial year. Under that law they are required to prepare the group financial statements in accordance with IFRSs as adopted by the EU and applicable law and have elected to prepare the parent company financial statements in accordance with UK Accounting Standards.

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 group and parent company and of their profit or loss for that period. In preparing each of the group and parent company financial statements, the directors are required to

  • Select suitable accounting policies and then apply them consistently;
  • Make judgements and estimates that are reasonable and prudent;
  • For the group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU;
  • For the parent company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the parent company financial statements; and
  • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the parent company will continue in business

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial statements comply with the Companies Act 2006.

They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that complies with that 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 UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DIRECTORS’ RESPONSIBILITY STATEMENT

Each of the directors, the names of whom are set out on pages 48 and 49 of this annual report, confirms that, to the best of his or her knowledge:

  • The financial statements in this annual report have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit of the company and the group taken as a whole 
  • And the management report required by DTR4.1.8R (contained in the Strategic Report and the Directors’ report includes a fair review of the development and performance of the business and the position of the company and the group taken as a whole, together with a description of the principal risks and uncertainties they face

The Strategic Report from the inside front cover to page 47 and pages 84 to 89 includes information on the group structure, the performance of the business and the principal risks and uncertainties it faces. The financial statements on pages 94 to 150 include information on the group and the company’s financial results, financial outlook, cash flow and net debt and balance sheet positions.

Notes 23, 27, 28, 31 and 32 to the consolidated financial statements include information on the group’s investments, cash and cash equivalents, borrowings, derivatives, financial risk management objectives, hedging policies and exposure to interest, foreign exchange, credit, liquidity and market risks. In addition to the above, the directors have considered the group’s cash flow forecasts for the next 12 months.

The directors are satisfied that these cash flow forecasts, taking into account reasonably possible risk sensitivities associated with them and the group’s current funding and facilities and its funding strategy, show that the group will continue to operate for the foreseeable future.

Accordingly, the directors have a reasonable expectation that the group and company will continue to operate within the level of available funding for the foreseeable future and it is therefore appropriate to adopt the going concern basis in preparing the financial statements.

The directors consider 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 performance, business model and strategy.

The statement of directors’ responsibilities and the Strategic Report was approved by a duly authorised committee of the board of directors on 31 March 2014 and signed on its behalf by Himanshu Raja, chief financial officer.”

 

Peter David

Company Secretary