boohoocom-plc-final-admission-document-5-march-2014

granted such permission is not guaranteed and if not successful would delay the Company’s plans and
could have a material impact on the capacity levels and future growth. The Company has multiple delivery
service providers to reduce the dependency on any single provider and constantly tracks service level
agreements.
Future strategy
There can be no certainty that the Group will be able to implement successfully the strategy set out in this
document. The ability of the Group to implement its strategy in a competitive market will require effective
management planning and operational controls.
Data security and IT reliability
The Company relies on its IT infrastructure and in particular the website. If the website were to fail or be
damaged this could seriously impact the Group’s ability to trade. boohoo mitigates this risk by investing in
IT infrastructure including having appropriate backup systems although additions and improvements are
being considered in relation to its back up systems to keep apace with the growth of the Group and
technological advancements. The Group does not presently have a comprehensive disaster recovery plan
in effect but it is proposed to put a plan of this nature into place. Business recovery plans are in place which
have been designed to minimise the impact of damage or denied access to third party IT systems.
There is further reputation risk associated with handling large quantities of customer data. If the data were
to be obtained by third parties without the consent of the customer this would have serious risks for the
Group from both a reputational and regulatory perspective.
Furthermore, interruptions or delays in service from such third party service providers (including providers of
the e-commerce systems), could impact or otherwise impair the delivery of services to customers and
therefore harm the Group. Any such errors or loss of service could harm the reputation of the business and
would likely result in a loss of revenues.
Acquisition risk
The Group may acquire other businesses if suitable opportunities become available. Any future acquisition
poses integration and other risks which may significantly affect the Group’s results or operations. To the
extent that suitable opportunities arise, the Group may expand its business through the identification and
acquisition of companies, technologies, products and services.
There can be no assurance that the Group will identify suitable acquisitions or opportunities, obtain the
financing necessary to complete and support such acquisitions or acquire businesses on satisfactory terms,
or that any business acquired will prove to be profitable. In addition, the acquisition and integration of
independent companies is a complex, costly and time-consuming process involving a number of possible
problems and risks, including possible adverse effects on the Group’s operating results, diversion of
management’s attention, failure to retain personnel, failure to maintain customer service levels, disruption to
relationships with customers and other third parties, risks associated with unanticipated events or liabilities
and difficulties in the assimilation of the operations, technologies, systems, services and products of the
acquired companies.
No assurance can be given that the Group will be able to manage future acquisitions profitably or to integrate
such acquisitions successfully without substantial costs, delays or other problems and any failure to achieve
successful integration of such acquisitions could have a material adverse effect on the results of operations
or financial condition of the Group. If the Group is unable to attract and retain key officers, managers and
technical personnel, to adequately effect any such acquisitions and integration, the Group’s ability to execute
its business strategy successfully and to provide quality services to its customers could be materially and
adversely affected.
Reliance on key suppliers
The Group does not have any significant reliance upon key suppliers. No single supplier provides more than
10 percent of sold product and the most suppliers provide less than five per cent. boohoo has developed
a wide supplier network that allows even unique product designs be switched to alternative suppliers very
quickly, with minimal loss to the Group.
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