TIDMMGAM
RNS Number : 1646U
Morgan Advanced Materials PLC
31 March 2021
Morgan Advanced Materials plc
(the Company)
31 March 2021
Publication of 2020 Annual Report and Notice of 2021 Annual
General Meeting
The following documents have today been posted or otherwise made
available to shareholders:
-- Annual Report and Financial Statements for the year ended 31
December 2020 (2020 Annual Report);
-- Notice of the 2021 Annual General Meeting (AGM) to be held at
the Company's offices at York House, Sheet Street, Windsor SL4 1DD,
on Thursday 6 May 2021 at 10.30am; and
-- Form of Proxy for the 2021 AGM.
In accordance with Listing Rule 9.6.1, a copy of each of these
documents has been uploaded to the National Storage Mechanism and
will be available for viewing shortly at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The documents are also available in the 'Invest In Us' section
of the Company's website at: www.morganadvancedmaterials.com .
AGM format in light of the coronavirus pandemic
Due to ongoing restrictions on gatherings across England
(including those relating to travel and indoor mixing) which are
intended to remain in place on the day of our AGM, the Board's
current intention is to hold the AGM at the Company's offices with
a limited number of Company representatives attending in person to
ensure that a valid meeting is held. Unfortunately, other
shareholders will not be permitted to attend the AGM while
restrictions remain in place.
The Board will continue to monitor developments and the latest
Government restrictions, and will assess whether any modifications
to the AGM arrangements are necessary, including if it becomes
possible to admit shareholders to the AGM in person. We therefore
ask shareholders to monitor the Company's website at
www.morganadvancedmaterials.com and regulatory news for any further
updates.
Shareholders may submit any questions on the business of the
meeting in advance by sending them by email to
company.secretariat@morganplc.com , by telephoning +44 (0) 1753
837000 or by post to our registered office address, addressed to
the Company Secretary. The Company will respond to those questions
and publish answers on the Company website. To ensure the answers
are published before the proxy appointment deadline questions must
be received by the close of business on Monday 26 April 2021.
Information required by Disclosure Guidance and Transparency
Rule 6.3.5
The Company's preliminary results announcement of 4 March 2021
contained a management report as well as audited financial
statements which were prepared in accordance with the applicable
accounting standards. The financial information set out in the
Company's preliminary results announcement of 4 March 2021 does not
constitute the Company's statutory accounts for the year ended 31
December 2020. Statutory accounts for 2020 are included in the 2020
Annual Report, which will be delivered to the registrar of
companies following the Company's 2021 AGM. The auditors have
reported on those accounts; their report was (i) unqualified, (ii)
did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying their report
and (iii) did not contain a statement under section 498(2) or (3)
of the Companies Act 2006 in respect of the accounts for 2020.
The information below, which is extracted from the 2020 Annual
Report, is included solely for the purpose of complying with DTR
6.3.5. This information should be read in conjunction with the
Company's preliminary results announcement issued on 4 March 2021
(available at www.morganadvancedmaterials.com ). This announcement
is not a substitute for reading the full 2020 Annual Report. All
page numbers and cross-references in the extracted information
below refer to page numbers in the 2020 Annual Report.
Related party transactions
There are no related party transactions requiring
disclosure.
Risk management
We have an established risk management methodology which seeks
to identify, prioritise and mitigate risks, underpinned by a 'three
lines of defence' model comprised of an internal control framework,
internal monitoring and independent assurance processes.
The Board considers that risk management and internal control
are fundamental to achieving the Group aim of delivering long-term
sustainable growth in shareholder value.
Principal and emerging risks are identified both 'top down' by
the Board and the Executive Committee and 'bottom up' through the
Group's global business units (GBUs) and divisions. The severity of
each risk is quantified by assessing its inherent impact and
mitigated probability, to ensure that the residual risk exposure is
understood and prioritised for control throughout the Group.
Senior executives are responsible for the strategic management
of the Group's principal risks, including related policy,
guidelines and process, subject to Board oversight.
Throughout 2020, the Board reviewed the status of all principal
risks with a significant potential impact at Group level.
Additionally, the Audit Committee carried out focused risk reviews
of each GBU. These reviews included an analysis of the principal
risks, and the controls, monitoring and assurance processes
established to mitigate those risks to acceptable levels.
As a result of these reviews, a number of actions were
identified to continue to improve internal controls and the
management of risk, including:
-- swift adoption of protocols to protect the workforce from COVID-19;
-- increased focus on the environment with the appointment of a
Group Environment & Sustainability Director in November
2020;
-- strengthening of information security and compliance function
by operating an IT and cybersecurity programme called
'thinkSECURE', including comprehensive security awareness
training;
-- focused actions within each business unit to mitigate risks.
The Board reviewed its appetite for the Group's principal risks
and concluded its appetite for these risks was unchanged from the
previous year. The Group is willing to take considered risks to
develop new technologies, applications, partnerships and markets
for its products and to meet customer needs. The Group strives to
eliminate risks to product quality and health and safety, as is
essential to the success of our products and the safety of our
people and contractors.
The appetite for risk in the areas of legal and regulatory
compliance is extremely low and the Group expects its businesses to
comply with all laws and regulations in the countries in which they
operate. The Group also has a low appetite for financial risk.
Certain risks, such as pension funding, are likely to take a longer
period of time to mitigate. During the year, the Board monitored
the Group's current risk exposure relative to the Board's appetite
for different risks. There were no risks where the current risk
exposure exceeded the Board's risk appetite.
Emerging risks
As part of the ongoing risk management process, the Board and
the GBUs identified and assessed emerging risks. The key emerging
risk areas identified were:
-- Environmental risk: climate change - including the potential
impact of rising sea levels on low-lying or coastal sites and our
role in protecting and enhancing the environment. Energy intensity
was also considered - including ways of adjusting our production
processes to reduce usage of fossil fuels. Raw materials and
potential issues with their continued availability was also judged
an area to be monitored.
-- Regulatory risk: pension regulations, due to the evolving regulatory environment.
-- Social risk - parts of the business have an ageing direct
workforce; this could lead to potential loss of skills and know-how
(in the future) as it becomes more difficult and expensive to
attract the next generation of workers.
-- Longer-term changes to end-markets - redirecting effort to
new end-markets when, for example, gas boilers are phased out and
replaced by other forms of heating, or petroleum-fueled vehicles
are phased out in favour of electric vehicles.
These emerging risks have been recorded and will be continually
monitored so that their potential impact can be understood and
mitigated. They will also be considered as an integral part of the
strategic planning process.
The following are the Group's principal risks and uncertainties
and represent the risks that the Board feels could have the most
significant impact on achieving the Group's strategy of building a
sustainable business for the long term, and could impact the
delivery of strong returns to the Group's shareholders. An
indication of the Board's assessment of the trend of each principal
risk - whether the potential severity has increased, decreased or
is broadly unchanged over the past year - is provided.
OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Technical leadership from 2019
Severity: Moderate The Group has a dedicated
Trend: Unchanged The Group's strategic technology
success depends on team within each GBU
maintaining and developing which monitors
its technical leadership relevant technology and
in materials science business
over its competitors. developments, using
Unforeseen/unmitigated technology
technology obsolescence, roadmaps linked to 20
the emergence of competing major technology
technologies, the families, to ensure it
loss of control of remains
proprietary technology at the leading edge of
or the loss of intellectual development.
property/know-how The Group also has four
would impact the Group's Centres
business and its ability of Excellence. These
to deliver on its Centres
strategic goals. focus Morgan's expertise
The advanced technological and
nature of the Group research resources on
requires people with further
highly differentiated developing core
skillsets. Any inability technologies
to recruit, retain and identifying new
and develop the right opportunities
people would negatively and applications.
impact the Group's The GBU leadership teams
ability to achieve proactively
its strategic goals. monitor their technology
priorities
and R&D investments and
have
implemented a stage-gate
process
to manage this
effectively. These
projects are also
regularly reviewed
by the Executive
Committee and
the Board.
Where Group products are
designed
for a specific customer,
they
are developed in
partnership
with the customer in
order to
maintain leading-edge
differentiation.
The Group seeks to secure
intellectual
property protection,
where appropriate,
for its existing and
emerging
portfolio of products and
has
an in-house counsel
dedicated
to intellectual property
protection,
with the support of
external
advisors.
The Group continued its
global
leadership programme
adding an
advanced programme to
develop
more high-potential
commercial,
functional and technical
leaders.
Further detail on our
people
can be found on pages 18
to 21.
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Risk description, Mitigation
OPERATIONAL RISKS assessment and trend
from 2019
Operational Changes to operational
execution/organisational As part of the Group's processes
change/sales strategy to improve are carefully considered
effectiveness the efficiency of by site,
Severity: Low its operations and GBU and divisional
Trend: Increased organisation, various management
within changes have been before implementation.
severity band made to operational Operational
processes at individual improvements and savings
sites, to the Group's are
structure, and to monitored against budget
the structure of and by the
incentives for our GBUs and the Executive
sales force. Further Committee
improvements and changes to ensure that changes
are planned for future deliver
years. Failure to the savings promised
manage these changes without
adequately could result disruption to business
in interruption to operations.
operations or customer New capital investments
service, or a failure are approved
to maximise the Group's at appropriate levels of
opportunities. the
Group and delivery of
these is
overseen by GBU and Group
management.
Organisational changes
are assessed
by the Chief Executive
Officer,
the Executive Committee
and sometimes
the Board before being
implemented
in line with local
employment
regulations.
A number of
functionalisation
initiatives commenced
within
the GBUs in 2020 to align
and
standardise data and
processes.
The rollout of these
projects
will continue in 2021.
Changes to our sales
structures
and incentives are
reviewed at
various levels of the
organisation
before being launched.
Further detail on our
strategy
can be found on page 7.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Portfolio management from 2019
Severity: Moderate The Board performs
Trend: Unchanged The Group operates regular reviews
across a range of of the Group's portfolio.
product and technology During 2020, the Group
families. These are launched
subject to long-term a COVID-19-related
market trends which restructuring
may lead to either and efficiency programme.
obsolescence or opportunities This
to further expand accelerated existing
the Group. Failure plans to
to manage the Group's simplify the Group's
portfolio of businesses portfolio
proactively and in and align capacity with
line with this technology the anticipated
profile could lead demand across the
to the value of the business. The
Group's businesses Group has announced
being eroded over closure of
time or to a failure Technical Ceramics
to exploit opportunities ceramic cores
to acquire businesses manufacturing sites (in
with the capability response
to add further value to the downturn in
to the Group. aerospace
demand) and closure of
under-utilised
production lines in
Thermal Ceramics.
Opportunities to acquire
businesses
are reviewed on a
continuing
basis.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Macro-economic from 2019
and political environment The Group's broad market
Severity: High The Group operates and
Trend: Increased in a range of markets geographic spread helps
within and geographies around to mitigate
severity band the world and could the effects of political
be affected by political, and
economic, social or economic changes.
regulatory developments Budgets and forecasts for
or instability, for Morgan's
example an economic different businesses are
slowdown or issues used
stemming from oil to monitor delivery
and natural resource against expectations
price shocks. and anticipate potential
Whilst a 'no-deal' external
Brexit was avoided risks to performance.
and new tariffs have These are
not currently been subject to regular review
introduced, the UK's by
exit from the EU impacts the Executive Committee
border controls, product and the
standards, and controls Board.
around the flow of The overall
data. The current macro-economic
value of Group's UK environment
exports to the EU has weakened compared
is approximately GBP24 with the
million and imports previous year. However,
into the UK from the the Group's
EU are approximately daily order intake has
GBP17 million. improved
during the second half of
2020.
Cost-control measures
have been
effective, and the Group
has
sustained a strong
balance sheet.
Global issues considered
by the
Board this year included
the
continuing impact and
uncertainty
relating to the trade
negotiations
between the US and China,
as
well as Russia/Iran and
Korea/Japan
trade relations. The
impact of
the UK's exit from the EU
has
been reduced by the
avoidance
of a 'no-deal' Brexit;
however,
tariffs could be
introduced in
the future.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Environment, health from 2019
and safety (EHS) Managing its operations
Severity: High The Group operates safely
Trend: Unchanged a number of manufacturing is the Group's number one
facilities around priority.
the world. A failure The Group has a
in the Group's EHS comprehensive
procedures could lead EHS programme managed by
to environmental damage the
or to injury or death Group H&S Director and
of employees or third the Group
parties, with a consequential Environment &
impact on operations Sustainability
and increased risk Director, with clear EHS
of regulatory or legal standards
action being taken and a refreshed programme
against the Group. of
Any such action could audits to assess
result in both financial compliance.
damages and damage The Group H&S Director
to reputation. Given and the
the long history of Group Environment &
many of the operations Sustainability
of the Group, there Director, working with
is also a risk that the Global
historical operating EHS Leads, set annual
and environmental priorities
standards may not for EHS which are
have met today's environmental approved by
regulations. In addition, the Executive Committee.
the Group may have These
obligations relating form the basis for
to prior asset sales individual
or closed facilities. sites' own EHS priorities
and
plans and complement the
Group's
'thinkSAFE' behavioural
safety
programme.
EHS performance is
monitored
by the Group Executive
Committee
and the Board. EHS
metrics are
regularly assessed.
Overall EHS
performance deteriorated
slightly
during 2020.
As at 31 December 2020,
the Group
was managing projects to
remediate
legacy contamination at a
number
of former operational
sites in
conjunction with external
specialists
and relevant authorities.
The Group's commitment to
protecting
and enhancing the
environment
is set out on pages 12 to
15.
Details of the Group's
provisions
and contingent
liabilities can
be found in note 25 to
the consolidated
financial statements.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Coronavirus (COVID-19) from 2019
pandemic In all our manufacturing
Severity: Moderate Communicable disease sites,
Trend: Not applicable. impacts ways of working, we have successfully
New risk in 2020. the supply chain and adapted
the ability of employees our ways of working to
to travel to work respond
in affected areas. to the pandemic -
Our priority is to introducing
take all actions and social distancing,
precautions necessary hygiene measures
to ensure the safety and additional PPE - to
and wellbeing of our keep
employees. The pandemic our people safe. Flexible
led to the shutdown working
of a number of our from home was also
manufacturing facilities introduced
during the year. for all roles that could
do so.
We have continued to
supply our
key customers operating
in essential
sectors, including
healthcare
and power generation.
The Group has provided
clear
and timely communication
to reinforce
the importance of
following safety
measures in every part of
the
organisation.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Product quality, from 2019
safety and liability Many of the Group's
Severity: High Products used in applications products
Trend: Unchanged for which they were are designed to customer
not intended or inadequate specifications.
quality control/over-commitment Our businesses' quality
on customer specifications management
could result in products systems and training help
not meeting customer ensure
requirements, which that all our products
could in turn lead meet or
to significant liabilities exceed customer
and reputational damage. requirements
Some of our products and
are used in potentially national/international
high-risk applications, standards.
for example in the The Group Legal Policy
aerospace, automotive, requires
medical and power that contracts relating
industries. to products
used in potential
high-risk applications
are subject to legal
review to
ensure that appropriate
protections
are in place for product
quality
risks.
The Group insurance
programme
includes product
liability insurance;
this Group-level
insurance is
reviewed annually by the
Board.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
IT and cybersecurity from 2019
Severity: High During 2020 we
Trend: Increased The COVID-19 pandemic strengthened our
resulted in a rise information security and
in remote working compliance
and an accelerated function. We are
shift to cloud platforms, currently operating
thereby increasing to a three-year approved
the cyber risk severity security
due to threats such programme and introduced
as email-propagated the
attacks (phishing, 'thinkSECURE' internal
cyber-fraud, impersonation, brand
malware, ransomware). as an awareness
If the Group were programme.
to lose critical information The Group has continued
(such as IP or regulatory to monitor
data) or if critical the regulatory and
systems availability compliance
were affected through landscape and is working
cyber-attacks, the towards
business would be certification against
impacted or could emerging
suffer reputational regulations, such as the
damage. US Department
The effective management of Defense's
of the Group's IT Cybersecurity Maturity
infrastructure is Model Certificate (CMMC),
important in enabling and
our businesses to the EU-GDPR and UK Data
deliver customer requirements Protection
reliably. If a key Act (DPA) 2018.
business system were We will mitigate residual
to fail or core systems and
implementation were emerging risks through
to be ineffective, continuation
the ability of the of our IT strategy and
business to deliver information
on its strategic goals security programme,
might be impacted. including
'thinkSECURE' and
implementation
of the related
cybersecurity
projects.
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OPERATIONAL RISKS Risk description, Mitigation
assessment and trend
Supply chain/business from 2019
continuity The Group has a
Severity: Moderate The Group has a number diversified
Trend: Unchanged of potential single-point manufacturing,
exposure risks, which customer and geographic
include: base
* Single-point supplier - a significant interruption of which provides a level of
a key internal or external supply could impact resilience
business continuity. against single-point
exposures.
Were any site to be
* Single-point customer - the unmitigated loss of a unavailable,
major customer could have an impact on Group profit. production in many cases
The Group's largest customer represents circa 3% of could
Group revenue. be switched to other
sites. A
new Business Continuity
* Single-point site - a key site exposed to a strike, a Policy
natural catastrophe or serious incident, such as fire has been rolled out to
, support
could impact business continuity. One Group site, minimum standards at the
Hayward, is situated in the California earthquake Group's
zone (US). Certain of the Group's businesses are most important sites for
important for intercompany supply purposes. intercompany
supply.
Management of these risks
also
involves monitoring and
reviewing
supply chains (internal
and external),
dual/multiple sourcing of
materials
or strategic stock, site
security
and safety mechanisms,
business
continuity plans, and
maintenance
of product quality and
strong
customer relationships.
The Group insurance
programme
includes business
interruption
cover and specific cover
in relation
to the impact of an
earthquake
in California, US; this
Group-level
insurance is reviewed
annually
by the Board.
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financial RISKS Risk description, Mitigation
assessment and trend
Treasury from 2019
Severity: Moderate The Group's treasury
Trend: Increased The Group's global function
within severity reach means that it operates on a risk-averse
band is exposed to uncertainties basis.
in the financial markets, Required controls over
the fiscal jurisdictions selection
where it operates, of banks, cash management
and the banking sector. and
These heighten the other treasury practices
Group's funding, foreign and
exchange, tax, interest payments globally are
rate, credit and liquidity documented
risks as well as the in Morgan's Treasury
risk that a bank failure Policy and
could impact the Group's related procedures. The
cash. Group
treasury team manages the
Group's
funding, liquidity, cash
management,
interest rate, foreign
exchange,
counterparty credit and
other
treasury-related risks.
Treasury
matters are regularly
reviewed
by the Board and Audit
Committee.
In 2020, the Group was
confirmed
as an eligible issuer
under the
UK Government's 'COVID-19
Corporate
Financing Facility'
(CCFF) with
an issuer limit of GBP300
million,
providing additional
liquidity
headroom. The facility
was undrawn
and expired in March
2021.
As at 31 December 2020,
the Group
had an undrawn Revolving
Credit
Facility of GBP200
million, which
matures in September
2024.
Further detail on our
Treasury
Policy is set out in the
Group
Financial Review, which
can be
found on pages 38 to 40.
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financial RISKS Risk description, Mitigation
assessment and trend
Pension funding from 2019
Severity: High Morgan's primary means of
Trend: Unchanged The Group sponsors mitigating
several defined benefit pensions funding risk is
pension arrangements proactive
(the Schemes), whose management of the pension
liabilities are subject scheme
to fluctuating interest assets and liabilities
rates, investment through
values and inflation. an integrated pension
This coupled with strategy
the increased longevity focusing on funding,
of members and a tougher investment
regulatory funding and benefit risk. This
regime will result involves
in increased funding both internal management
burdens on the Group within
in the future. the Group and also
The deficit in Morgan's external management
global defined benefit through the Schemes'
pension schemes calculated trustees,
on the basis required corporate actuaries and
for IAS 19 accounting professional
disclosures increased advisers.
from GBP156.8 million In the UK, both Schemes
as at 31 December are closed
2019 to GBP176.3 million to the future accrual of
as at 31 December benefits.
2020. In consultation with the
The Group also participates Company,
in two multi-employer the trustees have adopted
defined benefit schemes a proactive
in the US, both of approach to the
which have significant management of
funding deficits. risk in the Schemes'
investment
portfolios, significantly
reducing
their unhedged interest
and inflation
rate exposure. Following
the
most recent Scheme
valuations
in March 2019, Company
contributions
increased to GBP16.5
million
pa from 2020 (further
increasing
by 2.75% pa) for the
length of
the current recovery
plans (2025
and 2027).
The impact of the
evolving regulatory
environment for UK
occupational
pensions, and in
particular the
likely passing of the
Pensions
Bill in Parliament, will
continue
to be monitored closely
in 2021.
Risk for both of the
defined
benefit Pension Plans in
the
US has been reduced. One
completed
a full legal termination
(in
June 2016). For the other
Scheme,
a formal offer of a
present-value-equivalent,
lump-sum cash payment was
made
to members. Following a
$36 million
additional contribution
(in December
2017) and a move to a
significantly
de-risked investment
portfolio,
this Scheme is now almost
fully
funded on an accounting
basis.
A liability management
strategy
for one the US
multi-employer
plans has been agreed and
a proposal
for withdrawal made to
the Trustees
of the more severely
underfunded
arrangement.
No significant funding
obligations
exist in any other
individual
country although German
legacy
defined benefit schemes
are unfunded,
in accordance with local
practice,
with benefits being met
by the
Group as they are due.
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financial RISKS Risk description, Mitigation
assessment and trend
Tax from 2019
Severity: Moderate The Group's tax function,
Trend: Unchanged The Group operates working
in many jurisdictions in conjunction with
around the world and external
could be affected specialists as required,
by changes in tax closely
laws and regulations monitors fiscal
within the complex developments
international tax and changes such as BEPS
environment. to ensure
The OECD's Base Erosion that the Group's tax
and Profit Shifting arrangements
(BEPS) framework is and practices continue to
generating additional comply
obligations and filing with the requirements of
requirements for the all
Group as countries relevant jurisdictions,
continue to implement whilst
the actions in the also enabling efficient
framework. These could management
have an impact on of the tax liability. The
the tax paid by the Group's
Group. Head of Tax reports to
the Audit
Committee on key tax
issues and
initiatives.
The Group has published
its tax
strategy on its website
in line
with UK corporate
governance
requirements.
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LEGAL AND COMPLIANCE Risk description, Mitigation
RISKS assessment and trend
from 2019
Contract management The Group has an in-house
Severity: Significant As a global advanced legal
Trend: Unchanged materials business, function supplemented by
supplying components specialist
into critical applications, external lawyers.
the Group may be exposed The Group Legal Policy
to liabilities arising requires
from the use of its in-house legal review of
products. Ineffective high-value
contract risk management or high-risk contracts to
could result in significant ensure
liabilities for the they contain appropriate
Group and could damage protections
customer relationships. for the Group. The Policy
requires
Chief Executive Officer
approval
before a business can
enter into
an unlimited liability
contract
or one where the
liability cap
exceeds GBP5 million.
To the extent that risk
cannot
be mitigated through
contractual
arrangements, the Group
has insurance
cover in place, including
product
liability insurance.
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LEGAL AND COMPLIANCE Risk description, Mitigation
RISKS assessment and trend
from 2019
Compliance The Group is committed to
Severity: High The Group's global the
Trend: Increased operations must comply highest standards of
with a range of national corporate
and international and individual behaviour.
laws and regulations To
including those related support this, in 2018 the
to bribery and corruption, Group
human rights, trade/export issued the Morgan Code,
compliance and competition/anti-trust which
activities. has been continuously in
A failure to comply force
with any applicable since then. The Code
laws/regulations could defines
result in civil or the Group's approach to
criminal liabilities doing
and/or individual business ethically and
or corporate fines confirms
and could also result Morgan's commitments to
in debarment from high
government-related standards of ethical
contracts or rejection behaviour.
by financial market The Code is supported by
counterparties and a range
reputational damage. of documents and
mechanisms:
policies, standards and
guidance;
training materials; the
provision
of a 'Speak Up' hotline
for employees;
and systems to support
effective
screening of and due
diligence
on third parties.
Mandatory ethics training
for
staff covers topics
including
anti-bribery and
anti-corruption,
competition law,
harassment and
bullying, and trade
controls.
In-depth face-to-face
training
has also been held in
some of
the Group's higher risk
regions.
The Group's 'Speak Up'
methods
enable staff to report
concerns
anonymously.
The Group also has an
Export
Compliance Director in
the US
whose role is dedicated
to ensuring
compliance with export
controls.
In addition to
Group-level compliance
specialists, our
businesses are
required to establish
compliance
officer roles, which are
responsible
for supporting local
training
and monitoring. Morgan
also employs
country-specific trade
and export
compliance specialists in
higher-risk
businesses and
jurisdictions.
Further details on ethics
and
compliance can be found
on page
23.
---------------------------------------------------------------- -------------------------
Directors' Responsibility Statement
The 2020 Annual Report contains the following statements
regarding responsibility for the financial statements in compliance
with DTR 4.1.12. Responsibility is for the 2020 Annual Report and
Financial Statements and not the condensed statements required to
be set out in the Annual Financial Report announcement.
Each of the Directors in post as at 3 March 2021, the names and
roles of whom are set out on pages 48 and 49 of the 2020 Annual
Report, confirms to the best of their knowledge:
-- the Group's Financial statements, which have been prepared in
accordance with IFRS as adopted by the EU, give a true and fair
view of the assets, liabilities, financial position and profit of
the Group; and
-- the management report (comprising the Directors' Report and
the Strategic Report) includes a fair review of the development and
performance of the business and the position of the Group, together
with a description of the principal risks and uncertainties that it
faces.
Enquiries: Stephanie Mackie, Company Secretary
Telephone: 01753 837000
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END
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