annington annual rep 2019-web - Page 26

Strategic report | Principal risks and uncertainties
Principal risks and uncertainties
Area of potential uncertainty
The Group may face substantial
damages or be enjoined from
pursuing important activities
as a result of existing or future
litigation, arbitration or other
The Group may become exposed to potentially
significant litigation, arbitration proceedings
and other claims in connection with the Group’s
business. Disputes could arise in connection with
the Group’s contracts for the provision of property
management services or otherwise. Due to the
uncertainty inherent in litigation, there can be
no assurance that the ultimate outcome of any
legal proceedings will not result in an award of
substantial damages against the Group, including
one beyond its financial resources. Further, should
an issue arise in connection with a large proportion
of the Group’s properties, plaintiffs may seek class
action status. The Group’s insurance policies may
not be available or adequate to cover any liability
for damages, the cost of repairs, or the expense of
litigation surrounding future claims. This may have
a material adverse effect on the Group’s business,
results of operations and financial condition.
The Group maintains policies
and procedures to ensure it is
compliant with laws and ethical
standards to minimise the risk of
significant litigation.
The Group’s senior management
team is critical to the Group’s
continued performance.
The Group relies, to a significant extent, on the
discretion and judgment of the management
team. The Group’s performance and success is
dependent, in part, upon the members of the
Group’s senior management team and, in particular,
their relationships with, and their understanding of
the requirements of the MoD, other relevant public
and regulatory authorities in the industry and other
persons with whom the Group regularly deals in the
conduct of the its business. While the Group has
put in place policies and remuneration packages
that are designed to retain and properly incentivise
management, should senior management leave in
significant numbers, or if a critical member of senior
management were to leave unexpectedly, the
Group’s business, results of operations and financial
condition could be adversely affected.
The Group has devised
remuneration packages that are
designed to retain and properly
incentivise management.
Knowledge is shared between
senior staff members at formal
and informal meetings.
The Group uses several information technology
tools, platforms and systems to support, among
other things, its operations, billing, expenses and
financial information and reporting processes. The
Group’s business and operations could be adversely
impacted if these information systems or databases
and any back-up systems were to fail, or if the
databases were to be destroyed or damaged.
The Group has taken measures
to mitigate potential information
technology security risks and
information technology failures.
The Group’s business could
be disrupted if its information
systems fail or if its databases are
destroyed or damaged.
26 | Annington Limited Annual Report & Accounts 2019
In addition, the Group employs
respected companies to advise
on transactions and other legal
Additionally, if there is
sudden increased activity
within the business, it can be
managed effectively through
a combination of recruitment
and outsourcing to provide the
resource needed.
The Group takes regular back
ups and tests its IT disaster
recovery plan on an annual basis.
Former farm workers cottages in
Gamlingay, Bedfordshire have been fully
refurbished and extended to provide
modern, contemporary homes.
Annington Limited Annual Report & Accounts 2019 | 27


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