Risk

Mitigation Activities

• We undertake monthly reviews of divisional and Group results versus budget and forecast, and have a structured three year plan in place
• Market trends in key product categories are reviewed monthly at both divisions
• Maintain capital expenditure controls
• Continually review main elements of cash flow and maintain tight credit control including formal review of credit limits, exposures and payment terms
• Ensure cost base is fit for purpose

• The Group maintains a strong relationship with its banks and is confident that it has sufficient debt headroom available to fund the business in the medium term
• Monthly Treasury Review Committee meetings are held which include reviewing hedging policy, supplemented by weekly cash forecasts and daily monitoring of facility headroom
• The Group Board receives a treasury update from the Finance Director at each board meeting and annually reviews treasury policy

• A strategy review exercise which involves a full examination of market conditions and trends is held each year prior to budget setting and forms an integral part of the three-year plan
• The development of Menzies Marketing Services aims to develop new revenue streams
• Menzies Distribution focuses on cost and productivity efficiency in its core business and increasing regional newspaper market share

Risk

Mitigation Activities

• Providing consistent, transparent levels of customer services
• Balanced customer portfolio
• Maintain relationships with key accounts
• Flexible business model
• Regular review of costs

• Strategic analysis of options for next contract renewal
• Ongoing service level benchmarking
• Major contracts secured to 2014
• Branch rationalisation plan successfully implemented

• Continue to respond actively to retailer KPIs
• Customer survey has been refreshed and actions progressed
• Continue to improve service levels with retailer. An updated Service Pledge will be launched in 2011

Risk

Mitigation Activities

• The Group believes that retaining and developing staff is better for the business
  than external recruitment
• Personal Development Programmes and Leadership Development Programmes
  are in place
• 2010 Board level review of all key management completed

• Working in tandem with airport authorities
• Rigorous checking and vetting of all employees
• Central support is provided to all stations to ensure consistency utilising the MORSE Intranet based safety monitoring system, which provides consistent, regular reporting

• Our team structure ensures a culture where ownership of safety is the number one value
• The Group Board receives detailed reports from each division at each board meeting. Each division has established and ongoing Health and Safety induction and training programmes and dedicated resources available to them to ensure standards are continually raised
• Regional network of dedicated safety individuals are also in place and the SMART programme ensures adequate training and professional competencies are maintained

Risk

Mitigation Activities

• All of our data centres have adequate power and facilities. We ensure that our
  systems remain up to date with appropriate external firewalls where required
• There is also a tested disaster recovery plan and facility in place if required