Board of Directors
Appointed to the Board as a non-executive Director on 2 February 2011 and appointed Chairman on 14 September 2011. Appointed Executive Chairman on 30 April 2015. A private investor and currently Managing Partner of Haddeo Partners LLP.
Appointed to the Board as Group Finance Director on 3 October 2011. Previously Group Finance Director and Company Secretary of Cosalt plc.
A non-executive Director since 1 October 2007. Managing Director of Neofil Limited.
Appointed to the Board as a non-executive Director on 2 February 2011. Currently a non-executive director of GFI Software S.a.r.l. Previously vice-chairman, KPMG LLP.
Appointed to the Board as a non-executive Director on 13 May 2015. Currently a consultant in the Tax Practice of Allen & Overy LLP.
* Non-executive Director and member of the Audit Committee and member of the Remuneration Committee.
The Audit Committee
The Audit Committee is chaired by Mr Zissman and consists of the three Non- Executive Directors. The Committee reviews all financial statements, the scope and independence of the audit and internal control procedures.
The Remuneration Committee
The Remuneration Committee is chaired by Mr Rutherford and consists of the three Non-Executive Directors. The Committee is responsible for determining the salary and benefits of Executive Directors and senior employees and making recommendations to the Board with regard to awards under the share plans.
Whilst the Group does not specifically comply with any corporate governance code, maintaining the highest ethical and professional standards and accepting social responsibility is fundamental to the way we operate throughout The 600 Group PLC. We strive to run our businesses with honesty, integrity and transparency at all levels.
The Board of Directors has identified the main categories of business risk in relation to the implementation of the Group’s strategic aims and objectives, and has considered reasonable steps to prevent, mitigate or manage these risks. This is an ongoing process and the Board monitors risks and operational and compliance controls on a regular basis through defined policies and monthly financial controls and reporting procedures.
The principal areas of business risk noted are summarised as follows:
Macro-economic – the Group’s businesses are active in markets which can be cyclical in nature as the overall level of market demand is dependent upon capital investment intentions. Economic or financial market conditions determine global demand and could adversely affect our customers, distributors, operations, suppliers, and other parties with whom we transact. The directors seek to ensure that our overall risk is mitigated by avoiding excessive concentration of exposure to any given geographical or industry segment, or to any individual customer. Market conditions, lead indicators and industry forecasts are monitored for any early warning signs of changes in overall market demand, and measures to exploit opportunities or manage elevated risks are taken as appropriate.
Production and supply chain – the continuity of the Group’s business activities is dependent upon the cost effective supply of products for sale from our own facilities, and those of our key vendors. Supply can be disrupted by a variety of factors including raw material shortages, labour disputes and unplanned machine down time. In particular, the directors are mindful that a small number of key manufacturing outsource partners are located in relatively close proximity to each other in Taiwan.
Taiwan is ranked by Gardner Research as the seventh largest producer nation of machine tools, with global production valued at almost US$5 billion. Taiwanese suppliers represent approximately one third of the total cost of sales for the Group. Group businesses mitigate against such risk by carefully selecting high quality vendors, and maintaining long term constructive and open relationships. The effectiveness of such mitigation would be limited, however, in certain catastrophic circumstances (for example, extreme weather or seismic activity in the vicinity), against which the Group carries appropriate insurance.
Laws and regulations – Group businesses may unknowingly fail to comply with all relevant laws and regulations in the countries in which it operates and contracts business. There is a risk of breach of legal, safety, environmental or ethical standards which can be more difficult to identify, comprehend, or monitor in certain territories than others. The directors have taken all reasonable steps to ensure that operations are conducted to high ethical, environmental and health and safety standards. Controls are in place to keep regulatory and other requirements under careful review, and scrutinise any identified instances of elevated risk.
Information Technology (“IT”) – The Groups IT systems and the information they contain are subject to security risks including the unexpected loss of continuity from virus or other issues, and the deliberate breach of security controls for commercial gain or mischief. Any such occurrences could have a significant detrimental effect on the Group’s business activities. These risks are mitigated by the utilisation of physical and embedded security systems, regular back-ups and comprehensive disaster recovery plans.
2015 Preliminary Results Presentation
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