Annual Financial Report

RNS Number : 8397U

Informa PLC

11 April 2016

 

Informa PLC

Annual Report and Financial Statements 2015, Notice of 2016 AGM

Informa PLC (the "Company") today posted or otherwise made available to shareholders, the below listed documents. In accordance with Listing Rule 9.6.1R, the documents have also been submitted to the UK Listing Authority via the National Storage Mechanism and will be available for viewing shortly at www.hemscott.com/nsm.do.

-     Annual Report and Financial Statements for the year ended 2015

-     Notice of 2016 AGM

-     Form of Proxy for 2016 AGM

In accordance with DTR 6.3.5R(3), the Annual Report and Financial Statements 2015 will shortly be available to view on the Company's website at www.informa.com/Investor-relations along with the Notice of AGM 2016.

Other Information

The information below, which is extracted from the Annual Report and Financial Statements 2015, is included solely for the purposes of complying with DTR 6.3.5R. It should be read in conjunction with the Company's preliminary announcement issued on 11 February 2016. Together these constitute the material required by DTR 6.3.5R to be communicated to the media in unedited full text. This material is not a substitute for reading the full Annual Report and Financial Statements 2015. Page numbers and cross references in the extracted information refer to page numbers and cross references in the Annual Report and Financial Statements 2015.

Principal Risk Factors

Principal risks are risks the Group considers would have the most impact on Informa's strategic objectives. They have been robustly assessed in the context of the external and internal risk and control landscape.

Risk	Mitigation
Strategic Risks
2014-2017 Growth Acceleration Plan Growth may not be delivered within the expected timeline or at a rate that will cover investment costs, leading to reputational impact. IMPACT Failure of the Growth Acceleration Plan would have a major impact on the Group's ability to deliver its stated corporate growth objectives. There is potential for reputational damage within the investor community leading to an impaired ability to obtain, or retain, key funding commitments.	There are defined structures in place to support and deliver the Growth Acceleration Plan. A Steering Committee directs the overall programme to ensure it meets its objectives of accelerated growth underpinned by operational fitness, strengthened capabilities and better customer experience. A central Design Authority controls the finances available to each project and ensures the quality of each project. Projects progress through stage gates at which point the release of funding is approved or denied. The Design Authority is supported by a team of functional specialists and an Architecture Review Board. All risks to projects are considered through regular review forums. Divisional teams submit business cases for each project and lead and deliver their own GAP projects, with support from Divisional Project Management.
Cyber Security Major information security breach or cyber-attack resulting in loss or theft of data, content or intellectual property. IMPACT In the event of such a breach, Informa could suffer reputational damage, fines, business interruption and litigation.	Data security at Informa is governed by a dedicated Enterprise Information Security Office and supported by an Information Protection Steering Committee and an Information Protection Management Forum. There is an enterprise-wide data security programme and defined incident management processes, including those for employees to report security breaches. System controls include secure infrastructure, content level protection, access management and monitoring. Awareness of the Group's information protection policies and procedures is maintained through training and periodic communications that highlight the importance of the appropriate stewardship of information. In 2015, the management of data security and risk at a Divisional level was reviewed and strengthened through the appointment of Chief Technology Officers to each Division.
Acquisitions Sub-optimal acquisitions. IMPACT The failure to successfully identify and integrate key acquisitions could lead to loss of profits, inefficient business processes, inconsistent corporate culture and weakened Brand. Poor quality acquisitions weaken Informa's Brand and reputation and provide poor return on investment.	Informa takes a disciplined approach to identifying and testing acquisitions. Targets are analysed according to formal investment decision criteria to identify suitable, earnings enhancing acquisitions. They are tested by the Group Strategy and Business Planning Team for strategic fit. The due diligence process is led by the Director of Mergers & Acquisitions and supported by relevant Divisional Leadership Teams and Global Support functions including Finance and Legal. The Group's focus for 2016 is to improve the integration of acquisitions. A Group-wide acquisition integration tool is in development and anticipated to launch in the first half of the year.
Reliance on Key Counterparties The overreliance on or loss of key counterparties. IMPACT This may impact the Group's ability to enter into or remain in certain markets and have a disruptive effect on trading and revenues.	The Group monitors changes in the market and gathers regular customer feedback to ensure its products are well placed. It invests in a variety of distribution channels for products, which may include multiple venues per location or product type. The Group also engages regularly with key suppliers to understand their strategies and ensure a fit with the Group's strategic objectives. Deep dive reviews are conducted to examine and understand the risks and opportunities key counterparties present.
Economic Instability The arrival, or impending arrival, of an economic downturn or period of uncertainty affecting customer appetite for discretionary expenditure. IMPACT A period of economic instability could lead to a reduction in discretionary spending behaviours, which would have a direct impact on the profitability of one, or more, of the Group's products and services. Fluctuations in exchange rates could have an adverse effect on the strength of our Balance Sheet and our reported earnings.	The Group's business planning cycle allows for a degree of forward planning in the event of a period of economic instability. While it is not possible to mitigate the impact of such a period entirely, particularly if a downturn were prolonged, the Group could identify areas of significant impact and take corrective actions. These may include reducing the capacity of certain events to align with prevailing market conditions. Emerging uncertainty in the economic environment will be closely monitored in 2016. At a portfolio level, Informa's products and services are diversified across markets and geographies, which reduces the Group-wide impact of a downturn in any single sector or region. Financial planning and modelling activities are overseen by the Group Finance Director, who works closely with each Division to consider the trends likely to impact business activities. Governance oversight is provided by the Treasury Committee. The Group's financial control environment includes a credit control function that ensures advance payment is received for many events and subscriptions, as well as the close monitoring of trade receivables and exchange rate risk by Group Treasury.
Operational Risks
Technology Failure A major IT infrastructure failure or prolonged loss of critical IT systems, internet, networks and similar services. IMPACT Disruption of Informa's ability to deliver products and services. A prolonged interruption could lead to an inability to host certain key events or transact business, leading to a reduction in revenues and reputational damage.	The Group is strengthening its technology capabilities at a management, infrastructure and process level. In 2015, it appointed Chief Technology Officers and information security professionals to each Division, led by the Group Chief Information Officer, and instituted a Technology Leadership Forum that oversees all technology-related matters and ensures the Group's technology strategy is implemented. Informa has established a technology governance framework, Technology Minimum Expected Practices, which sets minimum standards for technology-related controls across the Group. Internal Audit and the Group Technology Compliance Director monitor compliance with these practices and provide audit and reporting mechanisms. Proactive measures to prevent disruption include moving to cloud-based solutions, monitoring, software patching and security testing. There is continuous investment in internet and electronic delivery platforms, networks and distribution systems.
Safety Management A significant accident or incident at an Exhibition, event or Informa office. IMPACT The impact of a safety-related incident could have numerous consequences for the Group and could lead to significant reputational damage, enforcement action and multiple claims for damages.	The Group has a health and safety framework, supported by relevant policies and procedures, which is overseen by the Group Risk Committee. There is a nominated Board Director responsible for health and safety matters. Informa's event-based businesses have dedicated Health and Safety resources responsible for overseeing and executing the Group's framework locally. There is a process designed to oversee the Group's office environments led by the Global Support Division. Accidents, incidents and near misses are reported to the Group Risk Committee. The Group maintains insurance coverage in respect of Health and Safety matters. The increase in unpredictable terrorist attacks is an emerging risk, and part of the Group's focus in 2016 will be on security, protection and business continuity.
Crisis Management A significant event requiring careful and sensitive management to protect the Group or other key stakeholders. IMPACT The inability to respond appropriately and in a timely manner could exacerbate an already sensitive incident, leading to significant business disruption, diversion of management time and reputational damage.	It is impossible to have a plan in place for all potential situations. The ultimate mitigation is dependent on management's judgement, effective teamwork, speed of reaction and quality of communication in a crisis situation. The Group has in place a crisis communications manual, which lays out the communications processes and procedures to follow in the event of a crisis. Its aim is to improve the quality of the Group's communications response to risk events, and to help avoid common mistakes and oversights.
Governance Risks
Regulatory Compliance The Group may be adversely affected by enforcement of and changes in legislation and regulation affecting its business and that of its customers and suppliers. Compliance with some legislation may be embedded into key financial undertakings to which the Group has been or may be subject. IMPACT Failure to comply with relevant regulations could lead to criminal and civil prosecution, including censure, reputational damage and potential inability to trade in certain jurisdictions. An actual regulatory breach could lead to a default under relevant financial undertakings.	The Group has internal Legal and Compliance Departments that provide advice and help define and implement Group policies. Sector and subject matter expertise exists within the Group's Divisions. Informa also engages with industry trade associations and governments to keep abreast of changes to legislation. Policies and procedures have been established which include systems to improve the detection of any possible non-compliance. Training is provided to staff on an ongoing basis, and completion rates are tracked through routine reporting activity.

Statement of Directors' Responsibilities

The following statement is extracted from page 95 of the Annual Report and Financial Statements 2015 and is repeated here for the purposes of compliance with DTR 4.1.12R.

The Directors confirm that, to the best of their knowledge:

·      the Consolidated Financial Statements have been prepared in accordance with the applicable set of accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

·      the management report, which is incorporated into the Strategic Report, includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risk factors.

Enquiries:

Rupert Hopley

Company Secretary

Tel: [phone]

 

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