AVESCOGROUPPLC ANNUAL REPORT 2009 23
www.avesco.com
In considering the appointment of a new director, the Board considers and defines the characteristics, qualities, skills and experience that it considers would
compliment the overall balance and composition of the Board. The committee may appoint an external consultant to help in the identification and recruitment of
an individual who satisfies the committee’s criteria, unless the Board is already able to identify an appropriate individual.
Internal control
The Directors have an overall responsibility for internal control within the Group. The effectiveness of the Group’s internal control system has been reviewed by the
Directors. The internal control system provides an ongoing process for identifying, evaluating and managing significant risks faced by the Company. The internal
control system, which has been in place throughout the year and up to the date of this report, is designed to manage rather than eliminate the risk of failure to
achieve business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss.
The controls in place include Group policies and procedures, which are operated in all subsidiaries and which define levels of authority and procedures for
regular control and management reporting.
The Group has a comprehensive system of financial reporting and forecasting covering profits, assets, liabilities, cash flow and capital expenditure. The systems
include regular monitoring of cash, monthly reporting of financial results, reviews of forecasts and comparisons with budgets. Budgets and business plans are
prepared annually by all operations and reviewed by management and the Board. Regular management meetings are held to monitor performance against
budgets, progress in implementing planned changes and the operational efficiency of the businesses.
Operational risks are identified and assessed by management with the identification and monitoring of significant risks being reported to the Board. In addition
to those financial and commercial risks associated with the Group’s core services, the nature of the core services businesses dictates that particular emphasis is
given to health and safety. The Group employs a health and safety manager and regular training programmes are provided for operational staff.
The Directors have considered the need for an internal audit function but believe that the size of the Group at present does not justify a dedicated internal audit
function. However, Avesco Group finance staff make regular visits to all the operations and perform many of those risk management tasks normally associated
with an internal audit function. The Directors review the decision not to have an internal audit function from time to time, in particular, having regard to material
changes in circumstances.
Relations with shareholders
The Board makes considerable efforts to establish relationships with institutions and shareholders and to meet and communicate with them on a regular basis.
Directors make institutional presentations at the time that the interim and full year results are announced. If so requested, the non executive Directors (including
the independent non executive Director) are available to attend meetings with major shareholders. The Board is keen to communicate with private investors and
welcomes the opportunity to meet with them at the Annual General Meeting. The Company counts all proxy votes lodged at general meetings of the Company
and indicates the number of proxy votes on each resolution, after it has been dealt with by a show of hands.
This annual report and the financial statements together with the Notice of Annual General Meeting and other information regarding the Group may be viewed
on the Company's website at
www.avesco.com.
By order of the Board
Nicholas Conn
Company Secretary
14 January 2010
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