TIDMCNA
RNS Number : 1941A
Centrica PLC
22 March 2017
22 March 2017
Centrica plc (the Company)
Annual Report and Accounts 2016
Further to the release of the Company's preliminary results
announcement on 23 February 2017, the Company announces that it has
today published its Annual Report and Accounts 2016 (Annual Report
2016).
The Company also announces that on 20 March 2017 it posted to
shareholders the Notice of Annual General Meeting to be held at
2.00pm on Monday 8 May 2017 at the QEII Centre, Broad Sanctuary,
Westminster, London, SW1P 3EE.
In accordance with Listing Rule 9.6.1, copies of the following
documents have been submitted to the UK Listing Authority and will
shortly be available for inspection from the National Storage
Mechanism:
- Annual Report and Accounts 2016
- Annual Review 2016
- Notice of Annual General Meeting 2017
The above documents are also available at centrica.com/ar16.
This information should be read in conjunction with the
Company's preliminary results announcement. A condensed set of the
Company's financial statements and information on important events
that have occurred during the financial year and their impact on
the financial statements, were included in the preliminary results
announcement released on 23 February 2017. That information,
together with the information set out below, which is extracted
from the Annual Report 2016, is provided in accordance with the
Disclosure and Transparency Rule 6.3.5, which requires it to be
communicated to the media in full unedited text through a
Regulatory Information Service. This announcement is not a
substitute for reading the full Annual Report 2016. Page and note
references in the text below refer to page numbers and note numbers
in the Annual Report 2016.
Our Principal Risks and Uncertainties
Managing our risks and uncertainties is key to achieving our
priorities.
LINKS TO STRATEGY
In line with our strategy we are concentrating more investment
on our customer-facing businesses organised into the two global
customer-facing divisions of Centrica Consumer and Centrica
Business. We are focused on delivering high levels of customer
service, improving customer engagement and loyalty, and developing
innovative products, offers and solutions for both residential and
business customers, underpinned by investment in technology. Our
asset businesses of Exploration and Production and Centrica Storage
continue to play an important role in our portfolio providing cash
flow diversity and balance sheet strength.
Our activities for near-term implementation and delivery of our
strategy are framed around the five priorities below. These
priorities are a lens through which we assess our risks and
discussions around risk appetite. Each priority has associated
risks, which are managed as part of our overall system of risk
management and internal control.
Our five priorities
Safety, compliance and conduct
Customer satisfaction and operational excellence
Cash flow growth and strategic momentum
Cost efficiency and simplification
People and building capability
Managing the Risks to the Delivery of our Priorities
Risk management is fundamental to the way the Group is governed
and managed. Our system of risk management and internal control
comprises the following elements that are assessed for
effectiveness annually:
-- Business Principles: sets our expected behaviours across the organisation.
-- Enterprise Risk Framework: incorporates the principal risks
within the Group Risk Universe, as outlined below.
-- Board and Committees' governance: committees are structured
to be aligned with the Principal Risks identified, as outlined
below.
-- Executive management oversight: establishing appropriate
executive processes to ensure appropriate planning and performance
management.
-- Operational management accountability and certification:
represents the first line accountability for the risk and control
environment.
-- Delegations of Authority: structure within which
accountability is delegated through the organisation in accordance
with identified risk appetite.
-- Management systems: the detailed Policies, Standards and
Procedures establishing the requirement for process level controls
that are monitored throughout the organisation.
-- Assurance providers: second and third line assurance provided
to ensure that Policies, Standards and Procedures are being
followed and that risks are being mitigated in line with risk
appetite.
The Group's strategic review in 2015 and its implementation in
2016 highlighted emerging risks and provided an opportunity to
simplify and standardise how significant risks are managed. We have
identified the differing nature of our risks including:
-- Risks that require standards where our tolerance for error is
generally very low. This will include Health, Safety, Environment
and Security, Legal and Regulatory Compliance, Financial Processing
and Reporting, Information Systems and Data Security, and Ethical
and Behavioural Standards. For these risks there will be management
systems providing clearly prescribed standards with ring-fenced
functional monitoring and assurance.
-- Risks where judgement is required within a range of
acceptable outcomes in order to deliver our priorities. This
includes areas where we need to take a certain level of risk such
as in commodity trading and our investment in the growth areas of
the business.
-- Risks resulting from external factors where we have limited
influence over their occurrence, but can influence the impact on
our business through our actions.
Assessing our Principal Risks in 2016
As in previous years we identified and assessed our risks within
the categories of Principal Risk overleaf to ensure appropriate
mitigating activities. During 2016 the risks that were prioritised
for leadership attention, and those that had most significant
impact in our assessment of the future viability of the
organisation, particularly related to:
-- ensuring we deliver a safe and compliant operating environment in all respects;
-- our strategic transformation and its impact on our people;
-- the changing political environment, and the potential for
further intervention, including Brexit;
-- the evolving regulatory requirements, particularly the
outcome of the Competition and Markets Authority (CMA)
investigation;
-- ongoing volatility in the commodity market with its impact on pricing; and
-- our commitment to our growth businesses and excellence in customer service.
We align our assessment of the extent of risk we wish to take
with our priorities and express our risk appetite in relation to
these priorities. For example, in relation to ensuring we have a
safe and compliant operating environment our appetite is very low,
whereas we are prepared to take risks in relation to delivering our
growth objectives.
The Principal Risks, and their related components, are allocated
oversight through the Board and its Committees as indicated
overleaf. The table also provides an indication of the risk
mitigation strategy for each risk category, reflecting our appetite
for risk, and our view on changes in the risk climate compared with
2015.
The Board retains overall non-executive responsibility for risk
across the Group. With the exception of certain risks that the
Board reserves to itself, oversight of specific Principal Risks
contained within the Group Risk Universe are delegated by the Board
to one or more of its Committees. The table below summarises each
Principal Risk with reference to oversight by the Board or its
Committee, its risk climate and the associated priority.
Description Potential Mitigation
impacts
--- -------------------- -------------------------- --------------------------------------------------------------
1 Strategy Following
delivery the conclusion * The Board approves the Group annual plan setting the
Failure to of the strategic strategic direction and confirming strategic choices
deliver Centrica review, the that are embedded in targets across the business.
strategy. delivery of
Governance our future
oversight strategy will * Quarterly performance reviews are held with all parts
Board involve growth of the business to monitor progress against these
Risk climate in a number targets.
- unchanged of business
Priority areas, implementing
substantial * We have a clear financial framework to ensure capital
Cash flow cost efficiencies is allocated in line with strategy and prioritised to
growth and and making deliver optimal business benefits.
strategic certain disposals.
momentum This is fundamental
to our future * We continue to strengthen our leadership team in
success and order to deliver in our growth areas, including the
incorporates appointment during the year of a Chief Information
both controllable Officer to support our digital strategy.
and uncontrollable
risk elements
which require * We apprise ourselves constantly of developments that
careful monitoring. are central to achieving our strategy.
--- -------------------- -------------------------- --------------------------------------------------------------
2 External Customer behaviour
market and demand * Events within the external market environment sit
Changes and can change largely outside of our direct control, but set the
events in due to improved tone for our future business.
the external energy efficiency,
market or climate change,
environment government * Regular analysis is undertaken on commodity price
that could initiatives, fundamentals and their potential impact on business
impact delivery long-term plans and expectations.
of Centrica's weather patterns
strategy. and the general
Governance economic outlook. * We continue to pursue a range of investment options
oversight In addition across the energy chain and in different markets and
Board we face competition geographies in response to external market
Risk climate in our upstream opportunities.
- increased businesses
Priority in uncertain
commodity * We are increasing our investment in connected homes
Cash flow markets and through smart meters, personalised customer energy
growth and we must respond usage reports, smart and time-of-use tariffs,
strategic appropriately. applications for remote heating control and US
momentum appliance rental programmes in order to respond to
market disruption and position us at the forefront of
new technology.
--- -------------------- -------------------------- --------------------------------------------------------------
3 Political We are subject
and regulatory to oversight * The Executive Committee members actively engage in
intervention from various discussions with all political parties, influencers
Changes, political and regulatory authorities.
intervention and regulatory
or a failure bodies in
to influence the UK, Republic * Following the decision to exit the European Union in
change to of Ireland, June we have been active in contributing our views on
the political US, Canada the development of the markets in which we operate.
or regulatory and elsewhere.
landscape. These bodies
Governance set and oversee * We are committed to an open, transparent and
oversight the terms competitive UK energy market that provides choice for
Board of our licences consumers.
Risk climate and the conduct
- increased of our operations.
Priority In particular * We accept that we may be the subject of focused
at present, regulatory scrutiny, with informal investigations
Cash flow as a consequence into one or more areas that could result in
growth and of the UK's stakeholder concerns and take measures to react as
strategic decision to quickly as possible.
momentum exit the European
Union and
wider political * We work with regulators to seek the right approach to
changes in intervention.
the markets
we operate
in, risks
relating to
changing policies
in relation
to energy
markets and
carbon emissions
are recognised.
--- -------------------- -------------------------- --------------------------------------------------------------
4 Brand, trust Our primary
and reputation focus is to * During the year a review of our brand positioning has
Competitive serve our been undertaken to ensure that this is aligned with
positioning customers our priorities.
and protection and satisfy
of the Centrica their changing
and subsidiary needs in all * The primary mechanism by which we review changes in
brands. of the markets our brand position is through NPS and other metrics
Governance we operate as described on page 19.
oversight in. We also
Board actively manage
Risk climate our brands * We are focused on providing affordable energy and
- unchanged and reputation, excellent service to deliver a fair, simplified and
Priority in order to transparent offering to all of our consumers.
protect and
Customer develop our
satisfaction competitive * We engage with NGOs, consumer and customer groups,
and operational position amongst political parties, regulators, charities and other
excellence a wide range stakeholders to identify solutions to help reduce
of stakeholders. bills and improve trust in the industry.
--- -------------------- -------------------------- --------------------------------------------------------------
5 Business We prioritise
planning, how we use * 2016 was the first full year of planning using a
forecasting our resources refreshed approach designed to underpin the delivery
and performance based on our of the priorities.
Business business plans
planning, and forecasts.
forecasting, Failure to * Group functions have adopted standardised planning
risk management accurately processes in support of the business priorities,
and achievement plan and forecast driving improved discussion and integration.
of anticipated taking into
benefits. account the
Governance changing business * Quarterly performance review meetings involving the
oversight environment Executive Committee enable the discussion of plans
Board could result and forecasts with revisions identified as necessary.
Risk climate in suboptimal
- unchanged decisions
Priority and failure * Constructive challenge is provided across each level
to realise of the business to ensure that the key assumptions
anticipated remain robust and appropriate.
Cash flow benefits.
growth and
strategic
momentum
--- -------------------- -------------------------- --------------------------------------------------------------
6 Customer The delivery
service of high quality * Great customer outcomes are at the heart of our
Failure to customer service strategy and their requirements shape our processes
provide good is central and interactions.
quality customer to our business
service through strategy.
the customer With the entry * Our risk appetite reflects the need to be innovative
lifecycle. of new competitors and to invest appropriately to deliver new products
Governance to the market, and service to our customers.
oversight customers
Board are increasingly
Risk climate likely to * We are wholly focused on providing affordable energy
- switch supplier and excellent service, working to deliver a fair,
Reduced in if they face simplified and transparent offering to consumers and
some parts an unacceptable protecting the most vulnerable, fuel-poor households
of the business, customer experience. through initiatives to improve energy efficiency or
but unchanged Remaining with financial advice and aid.
in others at the forefront
Priority of digital
developments * We continue to invest in connected home solutions and
Customer and innovating the development of digital platforms.
satisfaction to provide
and operational choice and
excellence control for * We have a sustained programme of simplification
our customers including the use of mobile apps, online service and
is critical. breakdown bookings, and electronic billing.
* Where we experience issues we invest to put them
right, including making substantial improvements in
our UK Business environment during 2016.
--- -------------------- -------------------------- --------------------------------------------------------------
7 People The attraction,
Attraction, retention, * We have an established People Committee that has
retention, development overseen the people related challenges inherent in
and succession and motivation our transformation programme.
of the right of our people
people with and leaders
the right are critical * We continue to evolve a clearly defined people
skills in factors in strategy based on culture and engagement, equality
the right the successful and wellbeing, talent development, training and
role at the execution reward and recognition.
right time. of our strategy.
Governance In addition,
oversight we require * Our Business Principles are currently under review to
Board and the right ensure they drive the right behaviours across our
Safety, Health, behaviours organisation, with a view to launching our new Code
Environment, from our leaders of Conduct in 2017.
Security and employees
and Ethics to deliver
Committee our business * We regularly review organisational capability in
Risk climate strategy in critical business areas, reward strategies for key
- increased accordance skills, talent management, and learning and
Priority with our values development programmes through external benchmarking.
and Business
People and Principles.
building * We engage with trade unions on restructuring and
capability issues that could impact terms and conditions with
clear and open processes to promote an environment of
trust and honesty.
* Feedback from our annual employee engagement survey
is acted upon by leadership teams.
--- -------------------- -------------------------- --------------------------------------------------------------
8 Change management The successful
Execution delivery of * Fortnightly transformation Steering Group meetings
of change business change are attended by the Executive Committee.
programmes is fundamental
and business to our future
restructuring. success, and * Change activity is managed through a structured
Governance includes organisational, network of programme offices providing oversight and
oversight cultural and governance at the appropriate level.
Board technical
Risk climate transformation.
- increased At the same * We have established a dedicated change capability at
Priority time, we must Group and business unit level to ensure benefits
continue to realisation, prioritisation of efforts and share best
Cost efficiency focus on maintaining practice.
and simplification our systems
of internal
control throughout. * Our people capability has continued to be developed
through 2016 to ensure we have the right skills to
deliver our future plans.
* We have a clear controls transition framework
underpinning our system of internal control.
--- -------------------- -------------------------- --------------------------------------------------------------
9 Asset development, Failure to
availability invest in * Capital allocation and investment decisions governed
and performance the maintenance through the Investment Committee with the decision
Investment, and development right remaining with the Group Chief Executive.
development of our assets
and integrity could result
of operated in underperformance, * Group-wide minimum standards applied to all assets,
and non-operated assets being whether operated or non-operated, in order to have
assets. out of service confidence in their integrity.
Governance or significant
oversight safety issues,
Board particularly * Issues related to the integrity of our assets are
Risk climate given the responded to quickly, resulting in a number of
- unchanged aging nature unplanned shut downs during 2016 to ensure that
Priority of a number appropriate investigations could be undertaken and
of our assets. remediation performed.
Customer Operational
satisfaction integrity
and operational is critical * The leadership teams in our asset-based businesses
excellence to be able have been refreshed to ensure that there is
to deliver appropriate experience to provide oversight of this
performance critical area.
in line with
the strategic
objectives.
--- -------------------- -------------------------- --------------------------------------------------------------
10 Sourcing Our business
and supplier operations * All suppliers are required to sign up to our 'Ethical
management rely on products Procurement' policies and procedures.
Dependency and services
on, and management provided through
of, third third parties, * Financial health, risk and anti-bribery and
parties to including corruption due diligence and monitoring is
deliver the outsourced implemented in supplier selection and contract
products activities, renewal processes.
and services infrastructure
for which and operating
they are responsibility * Joint venture audits are conducted in relation to
contracted for some assets. third party operation of critical assets.
to the agreed We rely on
time, cost these parties
and quality. to comply * We review the ethical conduct of our suppliers and
Governance with not only are currently implementing a programme of supplier
oversight contractual visits to provide additional assurance over practices
Board and terms, but employed.
Safety, Health, also legal,
Environment, regulatory
Security and ethical * We appointed a new Chief Procurement Officer in 2016
and Ethics business requirements. and are implementing a programme of activities to
Committee ensure consistent Group-wide practices are
Risk climate implemented in line with our policies.
- unchanged
Priority
Customer
satisfaction
and
operational
excellence
--- -------------------- -------------------------- --------------------------------------------------------------
11 Health, safety, Our operations
environment have the potential * HSES remains our highest priority with a continued
and security to result focus across all our assets and operations.
(HSES) in personal
HSES hazards or environmental
and regulations harm, or operational * We undertake regular reviews and have thorough
associated loss. Significant assurance processes in place in relation to these
with HSES events risks, with reporting to the HSES Committee on a
Centrica's could also monthly basis and full discussion of all issues
operations. have regulatory, arising.
Governance legal, financial
oversight and reputational
Board and impacts that * Third line of defence responsibility for HSES has
Safety, Health, would adversely been transferred into Internal Audit to ensure
Environment, affect some appropriate objectivity and reinforce our assurance
Security or all of provision.
and Ethics our brands
Committee and businesses.
Risk climate * We have strengthened our controls through the
- unchanged development of the HSES management system, focusing
Priority on areas including process safety, driving and
working at heights.
Safety, compliance
and conduct
* We continue to invest in training to ensure we
maintain safe operating practices, including HSES
leadership programmes.
* Security intelligence and operating procedures, as
well as crisis management and business continuity
plans are regularly evaluated and tested.
--- -------------------- -------------------------- --------------------------------------------------------------
12 Information Our substantial
systems and customer base * Our information security strategy seeks to integrate
security and strategic information systems, personnel and physical aspects
Effectiveness, requirement in order to prevent, detect and investigate threats
availability, to be at the and incidents.
integrity forefront
and security of technology
of IT systems development, * We engage with key technology partners and suppliers,
and data means that to ensure potentially vulnerable systems are
essential it is critical identified.
for Centrica's our technology
operations. is robust,
Governance our systems * We regularly evaluate the adequacy of our
oversight are secure infrastructure and IT security controls, undertake
Board, Audit and our data employee awareness and training, and test our
Committee protected. contingency and recovery processes.
and Safety, Sensitive
Health, data faces
Environment, the threat * We test our cyber security crisis management and
Security of misappropriation business continuity plans recognising the evolving
and Ethics from hackers, nature and pace of the threat landscape.
Committee viruses and
Risk climate other sources,
- unchanged including * The appointment of a new Group Chief Information
Priority disaffected Officer during 2016 has provided additional focus on
employees. ensuring that all information systems and security
Safety, compliance risks are managed appropriately.
and conduct
--- -------------------- -------------------------- --------------------------------------------------------------
13 Legal, regulatory Our operations
and ethical are the subject * Following the completion of the CMA investigation
standards of intense into our UK ES&S business we have established a
compliance regulatory programme to implement its recommendations in full.
Compliance focus and
with legal we seek to
regulatory deliver the * We have similarly responded to changing regulatory
and ethical highest standards requirements in a number of our NA ES&S markets
standards in compliance. during 2016.
requirements. This is part
Governance of our operating
oversight commitment * We have moved our regulatory compliance monitoring
Board and to conduct activities to a single function to drive Group-wide
Safety, Health, our business consistency and quality.
Environment, in an ethical
Security and compliant
and Ethics manner. We * We have a programme of improvement activities in
Committee recognise place to align our practices in areas including our
Risk climate any real or Business Principles, financial crime and Speak Up
- unchanged perceived with our operating model.
failure to
Priority follow our
Safety, compliance Business Principles * Our Business Principles and Values have been subject
and conduct or comply to review in 2016 with the involvement of many of our
with legal employees.
or regulatory
obligations
would undermine
trust in our
business.
Non-compliance
could also
result in
fines, penalties
or other intervention.
--- -------------------- -------------------------- --------------------------------------------------------------
14 Financial Our financial
market performance * The Audit Committee regularly assesses the
Exposure and price effectiveness of control mechanisms within EM&T.
to market competitiveness
movements, is dependent
including upon our ability * Following a review undertaken during the year, weekly
commodity to manage meetings have been introduced within EM&T involving
prices and exposure to our specialist financial risk team and operational
volumes, wholesale management.
inflation, commodity
interest prices for
rates and gas, oil, * The Group Financial Risk Management Committee meets
currency coal, carbon monthly to review Group financial exposures and
fluctuations. and power, assess compliance with risk limits.
Governance interest rates
oversight for our long
Board and term borrowing, * We have an active hedging programme to mitigate
Audit Committee fluctuations exposure to commodity and financial market volatility,
Risk climate in various which has enabled British Gas to freeze prices on the
- Overall foreign currencies, standard tariff until August 2017.
unchanged, and environmental
but differing factors.
drivers * As we move into new trading arrangements, including
Priority expanding our LNG business and as a result of the
acquisition of Neas Energy, we are focused on
Cash flow ensuring that our financial risk policies remain
growth and appropriate to the risks we face.
strategic
momentum
* We are investing in our systems to further automate
our control environment.
--- -------------------- -------------------------- --------------------------------------------------------------
15 Balance sheet Certain events
strength and activities * We assess available resources on a monthly basis and
and credit have a direct this analysis underpins our going concern assumption
position impact on and viability analysis as described on page 64.
Group balance our credit
sheet management ratings and
and credit liquidity * Significant committed facilities are maintained with
position. which could sufficient cash held on deposit to meet fluctuations
Governance increase the as they arise.
oversight cost of, and
Board and access to,
Audit Committee financing. * Our private placement, (see note 25), has
Risk climate In a changing strengthened our balance sheet.
- Overall external environmental
unchanged, we need to
but differing be able to * Counterparty exposures are restricted by setting
drivers respond to credit limits for each counterparty, where possible
Priority macro-economic with reference to published credit ratings.
or political
Cash flow influences.
growth and In particular, * Wholesale credit risks associated with commodity
strategic the lower trading and treasury positions are managed in
momentum interest rate accordance with Group policy.
adversely
impacts our
pension liabilities. * We continue to seek to repair the pension deficit and
have responded with a number of actions implemented
during 2016 (see note 22).
* We consider accounting assumptions impacting on our
balance sheet carefully, including decommissioning
and impairment, as described on page 76.
--- -------------------- -------------------------- --------------------------------------------------------------
16 Financial We must be
processing able to maintain * The Audit Committee reviews carefully our compliance
and reporting robust financial with our internal policies and external requirements.
Accuracy systems to
and completeness produce accurate
of internal financial * As described above, we maintain a robust control
and external statements framework with a focus on our financial controls and
financial underpinned management self-assessment compliance.
information. by appropriate
Governance accounting
oversight judgements * Our dedicated Group Controls function monitors our
Board and and the right critical financial risks and mitigating controls and
Audit Committee information reports to the Financial Risk, Assurance and Controls
Risk climate to support Committee quarterly.
- unchanged optimal business
Priority decisions.
Our obligation * We maintain an effective working relationship with
Safety, compliance includes maintaining our external auditors, listening to their advice and
and conduct processes recommendations, and they rely on our internal
to avoid misstatement assurance and monitoring activities where
through fraud appropriate.
or error so
that the confidence
of our customers,
investors
and regulators
is not undermined
and they can
rely on available
information.
--- -------------------- -------------------------- --------------------------------------------------------------
Related Party Transactions
The Group's principal related parties include its investments in
wind farms and the existing EDF UK nuclear fleet. During the year,
the Group entered into the following arm's length transactions with
related parties who are not members of the Group, and had the
following associated balances:
2016 2015
Sale Purchase Amounts Sale Purchase
of goods of goods owed Amounts of goods of goods Amounts Amounts
and and from owed and and owed owed
services services (i) to services services from to
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------------- --------- --------- ------- ------- --------- --------- ------- -------
Joint ventures:
Wind farms (as
defined in note
6) 7 (80) 120 (43) 14 (123) 232 (113)
Associates:
Nuclear (as defined
in note 6) - (617) - (57) - (639) - (61)
Other 4 (5) - - 3 (9) 2 -
---------------------- --------- --------- ------- ------- --------- --------- ------- -------
11 (702) 120 (100) 17 (771) 234 (174)
---------------------- --------- --------- ------- ------- --------- --------- ------- -------
(i) Amounts owed from Lincs Wind Farm Limited include a
shareholder loan of GBP113 million classified as held for sale, as
shown in note 12(c).
Investment and funding transactions for joint ventures and
associates are disclosed in note 14. Shareholder loan interest
income for wind farm joint ventures in the period was GBP13 million
(2015: GBP17 million). The terms of the outstanding balances
related to trade receivables from related parties are typically 30
to 120 days. The balances are unsecured and will be settled in
cash. No provision against amounts receivable from related parties
was recognised during the year through the Group Income Statement
(2015: nil). The balance of the provision at 31 December 2016 was
nil (2015: nil).
At the balance sheet date, there were back-to-back committed
facilities with Lake Acquisition Limited's facilities to EDF Energy
Nuclear Generation Group Limited totalling GBP120 million at
Centrica's share, but nothing has been drawn down at 31 December
2016.
Key management personnel comprise members of the Board and
Executive Committee, a total of 18 individuals at 31 December 2016
(2015: 16).
Remuneration of key management personnel 2016 2015
Year ended 31 December GBPm GBPm
----------------------------------------- ----- -----
Short-term benefits 15.8 12.3
Post employment benefits 1.1 1.9
Share-based payments 7.8 5.4
----------------------------------------- ----- -----
24.7 19.6
----------------------------------------- ----- -----
Remuneration of the Directors of Centrica
plc 2016 2015
Year ended 31 December GBPm GBPm
--------------------------------------------- ----- -----
Total emoluments (i) 9.8 6.4
Gains made by Directors on the exercise of
share options - -
Amounts receivable under long-term incentive
schemes - -
Contributions into pension schemes 0.8 0.7
--------------------------------------------- ----- -----
(ii) These emoluments were paid for services performed on behalf
of the Group. No emoluments related specifically to services
performed for the Company.
Directors' responsibilities statement
The Directors, who are named on pages 66 and 67, are responsible
for preparing the Annual Report, the Remuneration Report, the
Strategic Report and the Financial Statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare Financial
Statements for each financial year. Accordingly, the Directors have
prepared the Group Financial Statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU) and have elected to prepare the Company
Financial Statements in accordance with United Kingdom Generally
Accepted Accounting Practice including FRS 101 'Reduced Disclosure
Framework' (United Kingdom Accounting Standards and applicable
law). Under company law, the Directors must not approve the
Financial Statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Group and the
Company and of the profit or loss of the Group for that period. In
preparing these Financial Statements, the Directors are required
to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether IFRS as adopted by the EU and applicable UK
Accounting Standards have been followed, subject to any material
departures disclosed and explained in the Group and Company
Financial Statements respectively; and
-- prepare the Financial Statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and the Group and enable them to
ensure that the Financial Statements and the Remuneration Report
comply with the Act and, as regards the Group Financial Statements,
Article 4 of the IAS Regulation. They are also responsible for
safeguarding the assets of the Company and the Group and hence for
taking reasonable steps for the prevention and detection of fraud
and other irregularities.
Furthermore, the Directors are responsible for the maintenance
and integrity of the Company's website. Legislation in the UK
governing the preparation and dissemination of Financial Statements
may differ from legislation in other jurisdictions.
The Directors consider that the Annual Report and Accounts 2016,
when taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess the
Group's performance, business model and strategy.
Each of the Directors confirm that to the best of their
knowledge:
-- the Group 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 or
loss of the Group;
-- the Strategic Report contained on pages 2 to 64 together with
the Directors' and Corporate Governance Report on pages 65 to 99,
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;
-- as outlined on page 75, there is no relevant audit information of which PwC are unaware; and
-- they have taken all the steps that they ought to have taken
as a Director in order to make themselves aware of any relevant
audit information and to establish that the Company's auditors are
aware of that information.
ENDS
Enquiries:
Investors and Analysts:
Tel: +44 (0)1753 494900 Email: ir@centrica.com
Media:
Tel: +44 (0)1784 843000 Email: media@centrica.com
Centrica plc is listed on the London Stock Exchange (CNA)
Registered Office: Millstream, Maidenhead Road, Windsor,
Berkshire SL4 5GD
Registered in England & Wales number: 3033654
Legal Entity Identifier number: E26EDV109X6EEPBKVH76
ISIN number: GB00B033F229
This information is provided by RNS
The company news service from the London Stock Exchange
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March 22, 2017 07:00 ET (11:00 GMT)
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