Directors' Report & Financial Statements - page 7

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THE ALEXANDER BEARD GROUP PLC
GROUP STRATEGIC REPORT -
FOR THE YEAR ENDED 30 NOVEMBER 2013
The directors present their strategic report and the financial statements for The Alexander Beard Group plc (the company)
and its subsidiaries (the group) for the year ended 30 November 2013.
BUSINESS REVIEW
As reported in the group profit and loss account, group revenue is only slightly down at £1,977,617 (2011/12 - £1,984,447)
which is pleasing given the change in the regulatory environment that the group operates in as explained in the Chairman’s
Statement.
There was increased expenditure in the key areas of salaries, to retain key employees, as well as increases in travel costs
and professional insurance premuims due to the economic conditions. Trading profit, expressed as earnings before interest,
depreciation and amortisation (EBITDA) was down at £114,011 (2012: £168,804) with group profit before tax reported at
£29,200 (2012: £89,575).
The group continues to invest in improvements in its IT, administration support systems and communications with additions
totalling £39,085.
PRINCIPAL RISKS AND UNCERTAINTIES
Management continually monitor the key risks facing the group together with assessing the controls used for managing
these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.
The principal risks and uncertainties facing the group include, as reported in the Chairman’s Statement, the introduction of
the regulators Retail Distribution Review (RDR) and its most significant impact, the ending of commission on investment
business came into force. Commission can still be earned from our overseas activities and FCA allows commission to continue
on group pension plans where commission was in place before RDR was introduced.
The loss of key personnel would present significant operational difficulties for the group and as such management seek to
ensure that key personnel are appropriately remunerated to ensure that good performance is recognised.
FINANCIAL KEY PERFORMANCE INDICATORS
The group manages its cash and borrowing requirements centrally to maximise interest income and minimise interest
expense, whilst ensuring that the Group has sufficient liquid resources to meet the operating needs to its business
This report was approved by the board on 26 March 2014 and signed on its behalf.
P D Beard
Director
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