DJ Travis Perkins: Publication of 2020 Annual Report
Travis Perkins (TPK)
Travis Perkins: Publication of 2020 Annual Report
02-March-2021 / 19:55 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Publication of the Annual Report 2020
Further to the release of its results announcement this morning, Travis Perkins plc (the "Company") announces that it
has today published its Annual Report for the year ended 31 December 2020. The Company's Annual Report 2020 can be
viewed on the Company's website - https://www.travisperkinsplc.co.uk/investors/results-reports-and-presentations/year/
2021
In accordance with rule 9.6.1 of the Listing Rules, copies of the following documents have been submitted to the
National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/
nationalstoragemechanism
- Annual Report and Accounts 2020;
A condensed set of the Company's financial statements and information on important events that have occurred during the
year and their impact on the financial statements were included in the Company's announcement. That information
together with the information set out below which is extracted from the Annual Report constitute the requirements of
Disclosure and Transparency Rule ("DTR") 6.3.5 which is to be communicated via a Regulatory Information Service in
unedited full text. This announcement is not a substitute for reading the full Annual Report. Page and note references
in the text below refer to page numbers in the Annual Report. To view the preliminary announcement, visit the Company's
website: www.travisperkinsplc.co.uk
Enquiries:
Matt Worster
Matt.worster@travisperkins.co.uk
+44 (0) 7990 088548
Robin Miller
Robin.miller@travisperkins.co.uk
+44 (0) 1604 592533
STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES
For the year ended 31 December 2020
In an exceptional year dominated by the global pandemic, we have demonstrated a clear understanding of the risks we
face and taken a proactive approach to risk management to identify and pursue opportunities, drive better decision
making and, most importantly, prioritise the safety and well-being of the Group's colleagues and customers.
The pandemic has required an ongoing and agile assessment of risks, challenges and issues, adjusting to the development
of Covid-19 in real time. The pandemic and its wider economic effects continue to bring uncertainty to our operations
and the delivery of our strategic objectives. Even with a mass vaccination programme, this uncertainty is likely to
persist.
Risk management framework
We operate in an industry and markets which, by their nature, are subject to a number of inherent risks. In common with
most large organisations we are also subject to general commercial, political and economic risks. We are able to
mitigate those risks by adopting different strategies and by maintaining a strong system of internal control which is
routinely tested and assured.
Our risk management framework has three pillars:
* Top down - activities at the Board and Group Leadership Team levels, focused on material risks to the strategy and
operations.
* Bottom up - activities across the Group that capture risk perspectives that are significant at a business unit,
programme or functional level.
* Emerging risk - new and emerging risks are considered through the regular risk activities above, the results of
assurance activities, and, at least twice a year, through a process that assesses our risk set against external
benchmarks.
The output from each pillar informs the process to determine our principal risks.
Responsibility and oversight
The Board has overall responsibility for risk management and internal controls, and for reviewing their effectiveness
at least annually. The Board is supported in its assessment by the work of the Audit Committee, which regularly
assesses the risk framework and the results of key assurance processes, including the work of Internal Audit, to
provide assurance to the Board that risk is being effectively managed throughout the Group. Further details on risk
management responsibilities and oversight are given in the Corporate Governance Report on page 79.
Risk appetite
The Board accepts that, in order to achieve its strategic objectives, and generate suitable returns for shareholders,
it must accept, and manage, a certain level of risk. It undertakes an exercise, at least annually, to consider the
nature and level of risk it is prepared to accept to deliver the strategy. Risk appetite is set across a suite of risk
categories directly relevant to the Group, supported by high-level risk statements which set out the expectations for
the management and control of each category of risk. The resulting assessment of risk appetite has been set to balance
opportunities for growth and business development in areas of potentially higher risk and return, whilst prioritising
safety and maintaining the Group's reputation, legal and regulatory compliance and the desired high levels of customer
service and satisfaction.
In addition to its annual review in September, earlier in the year the Board also assessed whether the level of change
prompted by Covid-19 might lead it to revise its risk appetite.
This review concluded that the Group's response to Covid-19 had not sought to take additional risk and that its risk
appetite in related risk categories was already, and remained, one of low risk.
Risk assessment and reporting
Our risk management processes aim to identify and assess risks before they impact on activities, position the
businesses and support functions to effectively manage those risks and leverage related opportunities.
The Board has developed a risk reporting framework that ensures it has visibility of key risks, the potential impacts
on the Group and how and to what extent those risks are mitigated.
Our risk management activities continue to be developed to support management's assessments of threats and
opportunities that could materially impact strategic delivery, performance, compliance and reputation. Whilst Covid-19
has dominated risk activities for much of 2020, there has also been a focus on developing and delivering the risk
assessments required by the newly developed minimum standards that underpin our 12 material ESG focus areas. This work
will continue into 2021. In addition, a plan has been developed to further embed risk assessment into key strategic and
performance reviews in 2021, bringing an increased and regular focus on risk and opportunity management at key decision
points.
Risk assurance
We operate a "three lines of defence" model to obtain assurance that major risks are adequately mitigated and
controlled, as set out below. Oversight is provided by the Group Leadership Team and the Audit and Stay Safe
Committees, which includes review of progress against agreed improvement actions. Regular updates on assurance
activities are provided to the Board.
Line of Source of assurance Nature of assurance
defence
Business operations
& operational
1st management Direct assurance - execution of policies and procedures, training completion,
management controls and monitoring, key performance indicators and self-assessments
Branches &
distribution centres
Central functions
Includes Safety, Management assurance - risk management programme, compliance and monitoring
2nd Fleet, Legal, activities, central governance processes (including the setting of policies,
Finance, IT procedures and training)
and HR
Independent reviews
Independent assurance - internal audit activities and third party audits and reviews
3rd Internal audit, that objectively assess the adequacy and effectiveness of governance, risk
management and controls and support continuous improvement
external audit and
other third parties
Principal risks
The Board and Group Leadership Team robustly assesses the Group's principal and emerging risks at least twice a year. During 2020 the Board has considered principal risks at four meetings, including detailed assessments of the impact of Covid-19 on the risk set. The principal risks that we consider to have a potentially material impact on the Group's operations and the achievement of its strategic objectives are set out below. They are ordered by risk category rather than relative size of risk. The inherent risk (before the operation of mitigating controls) is stated for each risk together with an indication of the current trend for that risk and strategic objectives that are potentially impacted. Further detail in respect of the potential impact of these risks and the mitigating actions taken are explored on the following pages. The scope and potential impact of risks will change over time. As such the risks set out below should not be regarded as a comprehensive statement of all potential risks and uncertainties that may manifest in the future. Additional risks and uncertainties that are not presently known to us, or which are currently deemed immaterial, could also have an adverse effect on the Group's future operating results, financial condition or prospects.
Risk category Principal risks Strategic Risk trend - Risk trend - Inherent risk
objective objective 2020 2019
- -
Market conditions
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