Punch Taverns plc 2007 Annual Report and Financial Statements

purchased by the Group as well as food products within our
managed estate are fully traceable. The Group also has a formal
food accreditation process based on a programme of robust
supplier audits by an external food assurance company. A crisis
management process exists to ensure that products can be
recalled quickly if required. A policy of providing health and
safety and food safety training to all managed pubs as well
as food safety advice to our leased business is in place.
Threats to our concepts
An incident may occur, which may materially impact or damage
the reputation of one of the managed pub concepts. This
could affect the ability of the concept to attract future
customers or negatively impact the ability of that concept
to generate future income.
Integration of acquisitions
The Group occasionally makes material acquisitions or enters
into joint venture agreements. There is a risk that due diligence
activities or integration plans prepared by the Group may not
highlight all potential problems and that failure to do so may
have an impact on the Group’s ability to meet its objectives
for the transaction in the future. The management team aim
to mitigate this risk by ensuring sufficient due diligence is
performed, a project team works closely with the new business
and that performance is closely monitored from the outset.
Regulatory risks
Health and safety
Health and safety is of primary importance to the Group
and it aims to maintain a safe environment for all employees,
contractors, visitors and our customers. The Group also takes
compliance with relevant health and safety legislation very
seriously and has established a formal Health and Safety Policy
for the Group, as well as a Health and Safety Committee which
meets on a periodic basis and reports on the status of health and
safety to the Board of Directors via the risk management
framework. The Group has a policy of carrying out health and
safety, fire safety and food safety audits within the managed estate
on a regular basis and supports our lessees to understand their
responsibilities for health and safety through award winning
training and support from their Business Relationship Manager.
Litigation
The Group may be subject to legal and regulatory court proceedings
from its customers, suppliers, employees or regulatory authorities
for breach of its contractual duties or other responsibilities. The risk
of this litigation is not likely to be material in value, however may
impact the Group’s reputation or image. The Group works very
closely with local authorities and has in-house and external
specialists to help manage this risk.
Punch Taverns plc Annual Report and Financial Statements 2007 21