TIDMHOC
RNS Number : 0708K
Hochschild Mining PLC
17 April 2020
_________________________________________________________________________________
17 April 2020
2019 Annual Financial Report and
2020 Annual General Meeting ("AGM")
Following the release of the 2019 full year results announcement
on 19 February 2020 (the "Preliminary Announcement"), Hochschild
Mining PLC (the "Company") announces the publication of its Annual
Report and Accounts for the year ended 31 December 2019 (the "2019
Annual Report").
In accordance with LR 9.6.1 R, the following documents have been
submitted to the National Storage Mechanism and will be available
for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
-- 2019 Annual Report
-- 2020 AGM circular (incorporating the Notice of 2020 AGM)
-- Notice of Availability of the 2019 Annual Report and 2020 AGM circular
The above documents have been posted or otherwise made available
to shareholders and, in accordance with the Disclosure Guidance and
Transparency Rules ("DTR"), the 2019 Annual Report and the 2020 AGM
circular have been published on the Company's website at
www.hochschildmining.com
AGM ARRANGEMENTS
The 2020 AGM will be held at the offices of The Argyll Club, 33
St James's Square, London, SW1Y 4JS on Thursday 21 May 2020 at 9am
and has been arranged on the assumption that the UK Government's
measures to control the spread of Coronavirus (COVID-19) continue
to apply at the date of the meeting. Should this be the case,
shareholders will not be allowed to attend the AGM in person and
anyone who attempts to do so will be refused entry. For the
protection of those who are required to attend, physical attendance
by company representatives will be kept to a minimum and,
regrettably, there will not be a question and answer session.
Despite the practical challenges, we encourage shareholder
engagement and shareholders are therefore requested to submit any
questions they may have in connection with the formal business of
the AGM as detailed in the 2020 AGM circular. Responses will be
published on the shareholder section of the Company's website at
www.hochschildmining.com
If there are any developments which affect the arrangements for
the AGM (such as the easing of social restrictions), announcements
will be made via the London Stock Exchange and updates will be
posted on the shareholder section of the Company's website.
The appendices to this announcement contain the information
required to be disclosed under DTR 6.3.5 R which has been
reproduced from the 2019 Annual Report and should be read in
conjunction with the Preliminary Announcement. All page references
and cross-references in the appendices are to the 2019 Annual
Report.
________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Raj Bhasin +44 (0)20 3709 3263
Company Secretary
Hudson Sandler
Charlie Jack +44 (0)20 7796 4133
Public Relations
________________________________________________________________________________________________
About Hochschild Mining PLC
Hochschild Mining PLC is a leading precious metals company
listed on the London Stock Exchange (HOCM.L / HOC LN) with a
primary focus on the exploration, mining, processing and sale of
silver and gold. Hochschild has over fifty years' experience in the
mining of precious metal epithermal vein deposits and currently
operates three underground epithermal vein mines, two located in
southern Peru and one in southern Argentina. Hochschild also has
numerous long-term projects throughout the Americas.
LEI: 549300JK10TVQ3CCJQ89
_____________________________________________________________________________________
APPICES
Appendix 1
Risk Management (reproduced from pages 50 to 54 of the 2019
Annual Report)
As with all businesses, management of the Group's operations and
execution of its growth strategies are subject to a number of
risks, the occurrence of which could adversely affect the
performance of the Group. The Group's risk management framework is
premised on the continued monitoring of the prevailing environment,
the risks posed by it, and the evaluation of potential actions to
mitigate those risks.
The Risk Committee is responsible for implementing the Group's
policy on risk management and monitoring the effectiveness of
controls in support of the Group's business objectives. It meets
four times a year and more frequently if required. The Risk
Committee comprises the CEO, the Vice Presidents, Country General
Managers and the head of the Internal Audit function. A 'live' risk
matrix is reviewed which maps the significant risks faced by the
business as well as those considered to be emerging risks. The
matrix is updated at each Risk Committee meeting, and the most
significant current and emerging risks, as well as potential
actions to mitigate them, are reported to the Group's Audit
Committee, which has oversight of risk management on behalf of the
Board. In addition, during 2019, the Board agreed that the
Sustainability Committee would monitor actions plans to mitigate
sustainability risks.
2019 RISKS
The key business risks affecting the Group set out in this
report remain unchanged compared to those disclosed in the 2018
Risk Management report.
Reasons for the year-on-year change in the profile of a specific
risk can be found in the commentary section of the relevant risk,
which also provides an outlook on the risk for the current
financial year.
1. FINANCIAL RISKS
a) Commodity Price
Change in risk profile vs 2018: UNCHANGED
Impact
Adverse movements in precious metal prices could materially
impact the Group in various ways beyond a reduction in the
financial results of operations. These include impacts on the
feasibility of projects, the economics of mineral resources,
heightened personnel retention and sustainability related
risks.
Mitigation
- Constant focus on maintaining a low all-in sustaining cost of
production and an efficient level of administrative expense.
- Policy to maintain low levels of financial leverage to ensure
flexibility through price cycles.
- Flexible hedging policy that allows the Company to contract
hedges to mitigate the effect of price movements taking into
account the Group's asset mix and forecast production.
See the Market Review on pages 10 to 11 for further details on
how commodity prices performed in 2019.
Commentary
The Group's principal strategy to mitigate against commodity
price volatility is focused on conserving capital and optimising
cash flow. In 2019 this was achieved by:
- Debt refinancing;
- Controlling operating and administrative costs;
- Optimising sustaining capital expenditure; and
- Maintaining low working capital.
As previously reported, in December 2019 the Group refinanced
its short-term debt with a $200 million medium-term loan at a
comparable rate which, in addition to providing a two-year grace
period, has supplemented the Group's cash resources with a further
$50 million.
In addition, as reported in the Finance Review, 2019 working
capital and production costs have been kept under control.
As reported earlier in this report, the Inmaculada mine had
another record year in 2019 in terms of production and, as the
lowest cost operation in the Group's portfolio, it has been key in
reducing overall average production costs.
Even though currently no part of 2020 production has been
hedged, the Group's flexible policy enables the Board to approve
hedging contracts to protect cash flow as and when appropriate.
b) Commercial Counterparty
Change in risk profile vs 2018: LOWER
Impact
Insolvency of a customer or other business counterparty (bank,
insurance company, contractor, etc.) could result in the Group's
inability to collect accounts receivable or to access funds or to
receive services which could adversely impact the Group's
profitability.
Mitigation
- Periodic assessment of customers and business counterparties.
- Risk mitigation practices seeking to diversify the Group's
customer base and/or to limit the size of shipments.
- Ongoing assessment of methods to mitigate collection risk.
Commentary
Prompted by a long-standing customer entering into bankruptcy
protection in 2018, the Group strengthened its risk assessment
procedures by taking the following steps:
- Enhanced counterparty analysis: the enhancement of initial
financial and business quality checks of both new customers and
business counterparties, and more robust and more frequent
evaluations of existing customers. These evaluations incorporated
analysis of corporate governance, balance sheet strength and other
aspects of credit quality. As a result, a revision of terms of sale
to mitigate the Group's exposure has been implemented, emphasising
prepayments before a sale is completed
- Review of financial counterparties: the Group has implemented
policies to identifying suitable financial counterparties to
support the Group's treasury and insurance needs.
On an ongoing basis, the Group has adopted a number of practices
such as the placing of limits on cash balances invested with
financial institutions, monitoring of advanced payments from
customers and identifying alternative suppliers for critical
supplies and spare parts.
As a 2019 Audit Committee objective, see page 69 for more
information
2. OPERATIONAL RISKS
a) Operational Performance
Change in risk profile vs 2018: UNCHANGED
Impact
Failure to meet production targets and manage the cost base
could adversely impact the Group's profitability. Failure in
handling and storing tailings could result in environmental
liabilities including fines, corrective measures and stoppage.
Mitigation
- Close monitoring of operational performance, costs and capital
expenditure as well as the overall profitability at all stages of
the mining value chain.
- Monitoring the adequacy and safety of key mining components
such as tailing dams, waste rock deposits and pipelines in close
liaison with relevant departments ensuring that procurement,
construction and permitting are undertaken appropriately.
- A specific tailings management framework is in place,
including an independent third party review of Tailings Storage
Facilities (TSFs)
Commentary
In 2019 the Group exceeded its production target by 1.7m
attributable silver equivalent ounces with record performances at
Inmaculada and San Jose.
2019 budgets across the Group continued to focus on maintaining
controlled levels of costs, capital expenditure and expenses. As
reported in the Financial Review on page 37, the all-in sustaining
cost from operations was kept within the guidance for the year, at
$11.9 per silver equivalent ounce.
As reported last year, the decision was taken to place the high
cost Arcata mine on temporary care and maintenance. Measures have
been taken to manage associated costs efficiently, close certain
mining components, continue to explore for new resources and
maintain community relations, all in order to secure the option of
re-starting operations in the future.
The Group published information on its website regarding its
TSFs, including their construction method and risk profile. It also
continues to commission independent third party reviews of all such
facilities and monitors on an ongoing basis their stability, with
particular emphasis on older TSFs such as the Ares facility which
is in the process of being closed.
b) Business Interruption
Change in risk profile vs 2018: UNCHANGED
Impact
Assets used in the Group's operations may cease to function or
the supply of electricity may be interrupted (e.g. as a result of
technical malfunction or earthquake damage) thereby causing
production stoppages with material effects.
Mitigation
- Insurance coverage to protect against major risks.
- Management reporting systems to support appropriate levels of inventory.
- Annual inspections by insurance brokers and insurers assist
management's efforts to understand and mitigate operational
risks.
- Negotiation of long-term power supply contracts and the
procurement of contingent generators.
Commentary
In addition to acquiring insurance policies covering machinery
breakdown, mitigating actions during the year include the
following:
- A site visit by insurance brokers and re-insurers' engineers to assess risk exposure;
- A thorough review of critical supplies and inventory was
performed with data uploaded onto the Maintenance Module of SAP
HANA; Management reporting systems ensured that an appropriate
level of inventory of critical parts is maintained;
- Acquisition of back-up equipment to ensure power supply in Peru; and
- Design of a Business Continuity Plan ("BCP") documenting the
procedures to be implemented on the occurrence of certain
disruptive events. Training and implementation, which was
originally scheduled for Q4 2019, will take place in Q1 2020.
c) Information security and cybersecurity
Change in risk profile vs 2018: UNCHANGED
Impact
Failure of any of the Group's business critical information
systems as a result of unauthorised access by third parties may
affect the Group's ability to operate
Mitigation
- Compliance with ISO 27001, an internationally recognised
certification to evaluate information security management
systems.
- Dedicated team within the IT department focused on preventing cyber-attacks.
- Audits performed by the internal audit department and third
parties to test systems and issue recommendations.
Commentary
As previously reported, a review of the Group's exposure to
cyber risks was commissioned by a major audit firm in 2018 with the
principal recommendations implemented, including testing which took
place in two phases during the year to assure the robustness of
systems security. In addition:
- Industrial networks were incorporated into the Group's IS
Management System ("ISMS") with associated security enhancements
implemented;
- ISMS was successfully recertified as compliant with ISO 27001; and
- the use of SAP HANA as the Group's management information
system incorporates best in class features to mitigate data loss
risk.
d) Exploration & Reserve and Resource Replacement
(d)(i) Impact
The Group's future operating margins and profitability depend
upon its ability to find mineral resources and to replenish
reserves.
Change in risk profile vs 2018: HIGHER
Mitigation
- Implementing and maintaining an annual exploration drilling plan.
- Ongoing evaluation of acquisition and joint venture
opportunities to acquire additional ounces.
- Establishment of a Permitting Committee.
Commentary
The key highlight of the 2019 brownfield exploration programme
was the 46 million silver equivalent ounces of additional resources
at Inmaculada close to the Angela vein. For further details, refer
to page 28.
Land easements have been secured and other permits have been or
are in the process of being secured to facilitate the 2020-2021
brownfield exploration programme. The Group has an internal
Permitting Committee led by two Vice Presidents to co-ordinate
efforts with a view to streamlining the permitting process. Senior
executives actively participate in industry initiatives to simplify
the permitting process.
Greenfield exploration in 2019 was driven by a number of
earn-in/joint venture opportunities being secured. These provide
the Group with a balanced portfolio of advanced and early-stage
opportunities in stable jurisdictions in the Americas. Further
details are provided on pages 15 and 19.
(d)(ii) Impact
Reserves stated in this Annual Report are estimates.
Change in risk profile vs 2018: UNCHANGED
Mitigation
- Engagement of independent experts to undertake annual audit of
mineral reserve and resource estimates.
- Adherence to the JORC Code and guidelines therein.
Commentary
The Group has engaged P&E Consultants to undertake the
annual audit of mineral reserve and resource estimates.
See page 161 for further details
(a) Personnel: Recruitment and Retention
Change in risk profile vs 2018: UNCHANGED
Impact
Inability to attract or retain personnel through a shortage of
skilled personnel.
Mitigation
The Group's approach to recruitment and retention provides for
the payment of competitive compensation packages, well defined
career plans and training and development opportunities.
Commentary
The Group has undertaken a number of initiatives to improve the
retention of employees. These include the use of non-financial
benefits (e.g. flexible working arrangements for Head Office staff)
and tailored personal development plans. In addition, a three-year
Leadership programme continues to be implemented at all operations.
The Group has also maintained the training programme for
supervisors and hourly workers, and actively works to enhance the
Group's employee value proposition. These include the launching of
initiatives related to causes that are valued by employees;
providing them with the opportunity to contribute to the relaunched
purpose of the Company which includes innovation, community
relations and environmental performance.
Retention plans in the form of the Company's Long-Term Incentive
Plan and Restricted Share Plan were also in place for key
personnel.
(b) Personnel: Labour Relations
Change in risk profile vs 2018: HIGHER
Impact
Failure to maintain good labour relations with workers and/or
unions may result in work slowdown, stoppage or strike.
Mitigation
- Development of a tailored labour relations strategy focusing
on profit sharing, working conditions, management style,
development opportunities, motivation and communication
- Monthly meetings with mineworkers and unions to ensure a
complete understanding of expectations and to keep all parties
updated on the Group's financial performance
Commentary
For the first time since 2012, the Group's Peruvian operation
generated sufficient taxable income to give rise to an entitlement
to statutory profit sharing for Peruvian mineworkers.
As part of the salary increases agreed with the Peruvian labour
unions, the Company has approved an additional bonus plan
incorporating safety and productivity goals.
As reported last year, the decision was taken to place Arcata on
care and maintenance. Where possible, workers were redeployed, and
the redundancy process was completed in collaboration with the
relevant unions and without disruption to the Group's other
operations.
3. MACRO-ECONOMIC RISKS
Political, Legal and Regulatory
Change in risk profile vs 2018: HIGHER
Impact
Changes in the legal, tax and regulatory landscape could result
in significant additional expense, restrictions on or suspensions
of operations and may lead to delays in the development of current
operations and projects.
Mitigation
-- Local specialist personnel continually monitor and react, as necessary, to policy changes
-- Participation in local industry organisations
Commentary
Peru went through a constitutional crisis which led to President
Vizcarra dissolving Congress and calling for new congressional
elections in January 2020. This situation led to increased
political risk and reductions in public and private investment with
lower than expected economic growth in 2019.
Mining continues to be a highly regulated industry where
multiple permits are required leading to increased delays and
costs. Moreover, the prior consultation process for indigenous
communities has caused substantial delays in the permitting process
for exploration and operational activities. In addition, in October
2019, President Vizcarra announced that he would be introducing
legislation to modify the mining legal framework. A government-led
commission has been tasked with studying potential reforms. This
initiative has increased the legal and regulatory risk for the
industry as the outcome is uncertain.
In terms of social conflicts, protests relating to the Las
Bambas and Tia Maria projects have increased social demands and
expectations, and have led to wider social unrest. Governmental
authorities remain sensitive to conflicts between communities and
mining companies and typically take a cautious approach by
prioritising dialogue between parties.
Congressional elections in January 2020 resulted in the election
of nine different political parties, with no single party having a
majority. Given this fragmented nature, it is unlikely that any
major reforms may be approved. Left wing and radical
anti-establishment parties have increased their representations in
the new Congress. Some of those radical parties obtained a majority
of the vote in the regions where our mines are located, increasing
the risk of populism and anti-mining sentiment in these
regions.
In Argentina, 2019 was marked by the election of President
Fernandez from the Peronist party. While the new President has
publicly stated that he will promote the mining industry, it is
still very early in the new Administration to fully understand the
impact on the overall investment climate in Argentina and
particularly on the extractive industry sector. It is expected,
however, that in order to support the fragile Argentinian economy,
new taxes may be under consideration by the Government.
4. SUSTAINABILITY RISKS
Health and Safety
Change in risk profile vs 2018: LOWER
Impact
Group employees working in the mines may be exposed to health
and safety risks.
Failure to manage these risks may result in occupational
illness, accidents, a work slowdown, stoppage or strike and/or may
damage the reputation of the Group and hence its ability to
operate.
Mitigation
- Health & Safety operational policies and procedures
reflect the Group's zero tolerance approach to accidents.
- Use of world-class DNV safety management systems.
- Dedicated personnel to ensure the safety of employees at the
operations via stringent controls, training and prevention
programmes.
- Systematic programme of training, communication campaigns and
other initiatives promoting safe working practices
- Use of reporting and management information systems to monitor
the incidence of accidents and enable preventative measures to be
implemented
Commentary
2019 was a record breaking year in terms of safety performance
with the Company meeting its ongoing objective of Zero Fatalities
and key indicators demonstrating year-on-year reductions of 40% and
94% in accident frequency and accident severity respectively.
Management continued the implementation of the Safety Culture
Transformation Plan to reinforce the Group's commitment to
safety.
The Plan comprises the following pillars:
- Leadership, with mine management enhancing safety awareness
through support from specialist consultants and internally run
lectures
- Communications, focusing on initiatives to motivate and incentivise safe working practices
- Training, covering induction of new personnel and improvements
in operational practices throughout the mining and exploration
process
- Technical, with re-certification of the Group's risk
information management systems to DNV's Level 6. Work has begun in
order to advance to Level 7 during 2020.
In addition, during the year:
- The recommendations made in a third-party audit of the Group's
safety procedures were fully implemented;
- A High Potential Events Committee, led by the CEO, was
established to investigate such cases and issue reports on lessons
learned; and
- The Group launched two technology based solutions to improve
safety: a mobile app to log safety-related observations at the
operations and the installation of software on the dashboard of
personnel transportation to regulate speed and detect driver
fatigue.
For further details on the above, please refer to the safety
section of the Sustainability Report on pages 42 and 43.
Environmental
Change in risk profile vs 2018:
(a) In relation to those risks arising from the Group's
environmental performance/ infrastructure: UNCHANGED
(b) In relation to those risks arising from the increased
oversight of the environmental regulator: HIGHER
Impact
The Group may suffer from reputational risk and may be liable
for losses arising from environmental hazards associated with the
Group's activities and production methods, ageing infrastructure,
or may be required to undertake corrective actions or extensive
remedial clean-up action or pay for governmental remedial clean-up
actions or be subject to fines and/ or penalties.
Mitigation
- The Group has a dedicated team responsible for environmental management
- The Group has adopted a number of policies and procedures to
manage its environmental footprint.
- The Group has developed a tool which allows it to measure and
manage environmental performance.
- The Group continues to adopt measures to minimise natural
resource use, with particular emphasis on water consumption in its
operations.
- A specific tailings management framework is in place for TSFs,
including independent third party review.
Commentary
With regards to the countries where the Group operates,
environmental permitting and agency oversight in Peru in particular
remained rigorous during the year.
In 2019, the Group performed highly in its ECO Score (with a
score of 4.82 out of 6), which allows us to quantify and distil in
a single number our environmental performance and recognises the
following aspects of environmental management:
- Compliance with discharge regulatory limits;
- Minimising the number of environmental incidents;
- Minimising the number of findings from regulatory audits;
- Efficient water consumption; and
- Minimising domestic waste generation and maximising recycling of industrial waste.
For further details, please refer to the environmental section
of the Sustainability report on pages 48 and 49.
In addition, during the year, the Environmental team:
- Secured permits to support the Group's exploration programme and operational requirements;
- Held over 500 events, training and housekeeping campaigns across all mine sites;
- Is in the process of completing the proposed environmental
infrastructure improvement action plan set in 2015. 22 water
treatment plants have been installed and overhauled with the final
two installations to be completed at Inmaculada;
- Continued with the progressive closure of certain discontinued mining components; and
- Adopted measures to minimise water consumption, particularly
at San Jose, which is located in an area with very low annual
rainfall and which is experiencing a severe drought, which can lead
to water shortages.
Community Relations
Change in risk profile vs 2018: HIGHER
Impact
Communities living in the areas surrounding the Group's
operations may oppose the activities carried out at existing mines
or, with respect to development projects and prospects, may invoke
their rights to be consulted under new laws.
These actions may result in loss of production, increased costs
and decreased revenues, longer lead times, additional costs for
exploration and have an adverse impact on the Group's ability to
obtain the relevant permits.
Mitigation
- The Group has a dedicated team responsible for Community Relations
- Constructive engagement with local communities based on several years of positive relations.
- Community Relations strategy focuses on promoting education,
health and nutrition, and sustainable development.
- Policy to actively recruit workers from local communities.
- Policy of hiring service providers from local communities.
- The Group has also engaged with local governments to support
public investment initiatives through technical assistance and
direct investment.
Commentary
In Peru, protests relating to the Las Bambas and Tia Maria
projects have increased social demands and expectations, and have
led to wider social unrest.
A number of actions were taken during the year to maximise the
Group's ability to work with partner communities which
included:
- Increased efforts to collect and process information and
intelligence regarding potential social conflicts;
- increased interaction with local governments and other key stakeholders;
- the re-launching of its social programmes based on the results
of a survey conducted among surrounding communities;
- the launch of a collaboration with the Julian Baring
Scholarship Fund to fund six scholars from the local communities
close to Inmaculada to pursue higher education in a number of
mining-related disciplines.
Further details on the Group's activities to mitigate
sustainability risks can be found in the Sustainability Report from
page 41.
Appendix 2
Related-Party Balances and Transactions, and Compensation of key
management personnel of the Group (reproduced from page 141 of the
2019 Annual Report)
(a) Related-party accounts receivable and payable
The Group had the following related-party balances and
transactions during the years ended 31 December 2019 and 2018. The
related parties are companies owned or controlled by the main
shareholder of the parent company or associates.
Accounts receivable Accounts payable
as at 31 December as at 31 December
--------------------- --------------------
2019 2018 2019 2018
US$000 US$000 US$000 US$000
---------- --------- --------- ---------
Current related party
balances
Cementos Pacasmayo S.A.A.(1) 569 76 56 7
Tecsup(2) - - 41 -
Universidad UTEC(2) - - 95 -
Total 569 76 192 7
----------------------------- ---------- --------- --------- ---------
(1) The account receivable relates to reimbursement of expenses
paid by the Group on behalf of Cementos Pacasmayo S.A.A. The
account payable relates to the payment of rentals.
(2) Peruvian not for profit educational institutions controlled
by Eduardo Hochschild.
As at 31 December 2019 and 2018, all other accounts are, or
were, non-interest bearing.
No security has been granted or guarantees given by the Group in
respect of these related party balances.
Principal transactions between affiliates are as follows:
Year ended
--------------
2019 2018
US$000 US$000
------ ------
Expenses
Expense recognised for the rental paid to Cementos Pacasmayo S.A.A. (200) (200)
Expense recognised for the interests generated by the short-term loan from Banco de Credito
del Peru (480) -
-------------------------------------------------------------------------------------------- ------ ------
The Group enters into transactions with Banco de Credito del
Peru at arm's length such as short-term loan and deposits which are
undertaken in the normal course of a banker-customer relationship.
This bank is controlled by Dionisio Romero who is a Non-Executive
Director of the Group.
Transactions between the Group and these companies are on an
arm's length basis.
(b) Compensation of key management personnel of the Group
As at 31 December
-------------------
Compensation of key management personnel 2019 2018
(including directors) US$000 US$000
--------- --------
Short-term employee benefits 7,911 6,619
Long Term Incentive Plan, Deferred
Bonus Plan and Restricted Share Plan 1,184 2,899
Total compensation paid to key management
personnel 9,095 9,518
------------------------------------------ --------- --------
This amount includes the remuneration paid to the Directors of
the parent company of the Group of US$4,238,000 (2018:
US$4,601,000).
Appendix 3
Statements of Directors' Responsibilities
A) Reproduced from page 60 of the 2019 Annual Report
The Directors confirm that to the best of their knowledge:
-- the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position and profit of the
Company and the undertakings included in the consolidation taken as
a whole; and
-- the Management 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 risks and
uncertainties that they face.
B) Reproduced from page 95 of the 2019 Annual Report
The Directors are responsible for preparing the Annual Report
and the Group and 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 the Directors have prepared the financial statements in
accordance with International Financial Reporting Standards
('IFRS') as adopted by the EU.
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 the parent company
and of their profit or loss for that period. In preparing those
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;
- state whether applicable IFRS have been followed, subject to
any material departures disclosed and explained in the 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 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 comply
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.
- ends -
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