20645_Scapa_AR_160504

VIABILITY STATEMENT
STRATEGIC REPORT
In accordance with provision C.2.2 of the
2014 revision of the Corporate Governance
Code, the Directors have assessed the
prospect of the Group over a longer period
than the 12 months required by the “Going
Concern” provision. The Board have
conducted this review for a period of
three years, which was selected for
the following reasons:
The Group’s strategy of long-term profitable
growth is set over a rolling three-year period.
A review of the current and future customer
contracts has been undertaken and it is
reasonable to conclude that given
appropriate management these will
continue throughout the period.
Business risks are reviewed at least annually
and the Group manages a risk based
assurance programme which is set over a
three-year period. This is consulted on with
the business units and the Board on a
regular basis and the Group believes that this
enables assurances to be obtained on the
systems of internal control in those areas
which have been identified as barriers to
achieving its strategic objectives.
This has been further underpinned by the
regular Board briefings provided by the
Executive Directors as part of a robust
reporting and business unit review
framework. This process highlights business
strategy risks and opportunities, which are
considered within the Board’s risk appetite
framework.
PRINCIPAL RISKS
During 2015/16 the Board has continued to
assess and monitor the principal risks of the
business. This includes those risks (financial,
operational and compliance) which would
impact on the Group’s strategy to achieve
long-term profitable growth. The principal
risks have been categorised into::
> > Strategic
> > Financial
> > Market
> > Operations
> > Regulatory and compliance
The strategic risks that have been identified
in the Annual Report and Accounts are
specific to the Group and are a reflection of
the importance that the Group places on its
robust risk management programme, which
is continually being reviewed.
More detail of the processes adopted are
provided in the earlier part of this section
of the report.
CURRENT POSITION AND PROSPECTS
The Directors confirm that they have a
reasonable expectation, absent a major
unforeseen event outside of the Group’s
control, that the Group will continue to
operate and meet its liabilities as they fall
due for the next three years.
The Directors’ assessment has been made
with reference to the Group’s current
position, prospects and balance sheet
strength, the Group’s strategy and the
Group’s principal risks and how these are
managed, as detailed in the Strategic Report.
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ANNUAL REPORT AND ACCOUNTS 2016 SCAPA GROUP PLC