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Transparency

What transparency means to us

With investors, as with customers, we seek long term relationships based on transparency, honesty and clarity. We are therefore committed to open and regular engagement with our shareholders.

 

 

 

 

Our policy and commitment

We recognise that meaningful engagement with our institutional and retail shareholders is integral to our continued success.

Our reporting must be fair, balanced and understandable – containing the information necessary for shareholders to assess our performance, business model and strategy. Transparent communication requires high quality management information, which we have invested in to ensure we can report appropriately to all stakeholders, both internal and external.

In summary, we strive to:

  • maintain open, meaningful dialogue with all our shareholders, and use a variety of communication means to update investors on performance and gain insight into shareholder views, including ensuring that Board members and the wider senior management team are available to address shareholder questions and views at our Annual General Meeting;

  • provide meaningful insight into our results and prospects, and have management information systems that enable efficient and effective internal and external reporting; and

  • base our approach to executive remuneration on a clear rationale in which the alignment of interests are recognisable and understandable.

Key components in our governance

  • Primary responsibility for day-to-day Investor Relations activities and engagement with shareholders rests with the Group Chief Executive, Group Chief Financial Officer and the Investor Relations function.

  • In addition, the Chairman may meet with some of our largest shareholders, whilst the responsibilities of the Senior Independent Director include providing an alternative point of contact for them. The Chair of the Remuneration Committee meets separately with advisory bodies and institutional shareholders to discuss our approach to remuneration.

  • In order to maintain effective and ongoing dialogue regarding our performance, we conduct regular presentations, meetings and calls with institutional investors and analysts in addition to our Stock Exchange Announcements.

  • Assurance of our reporting is a key responsibility of our Audit Committee, who in turn review guidance from bodies such as the Financial Reporting Council and are supported and challenged by our External Auditor.

  • Our management information framework includes the contract performance monitoring process (tracking performance measures specific to each customer operation), our monthly management accounts and our Divisional Performance Review (DPR) processes. Recent and ongoing development of these is key to improving internal and external transparency. 

  • The Board reviews regular Investor Relations reports, which highlight investor perspectives, share price movements, changes in the share register, our recent and planned investor relations activities, analyst recommendations and financial forecasts, and significant news from the market and the support services sector.

Our progress and performance in 2017

We have:

  • worked to ensure transparency by issuing two trading updates in addition to the requirement to report half- and full-year results, as well as issuing a further 18 announcements regarding contract or corporate transaction news;

  • engaged with over 100 different institutional investment funds – holding around 200 meetings with institutional investors and attending six investor conferences as part of the investor roadshows conducted by our executive directors after half- and full-year results or at other times during the year;

  • hosted a Capital Markets Event, focused on the Justice & Immigration and Defence sectors as well as Transformation updates, to deepen understanding of our operations and strategy – featuring business and contract case studies given by 16 members of our management team and attended by around 100 analysts and investors; and

  • been recognised for our commitment to transparency with a top sector ranking and ‘Most Honoured Companies’ award from Institutional Investor.

Our next steps

We will continue to deliver our annual schedule of internal and external reporting, shareholder engagement and reporting assurance.