Final Results for the year Ended 30 June 2015

30 November 2015

Management Resource Solutions PLC

("MRS" or the "Company")

Final Results for the year Ended 30 June 2015

MRS, the human capital resource consultancy quoted on AIM, is pleased to announce its results for the year ended 30 June 2015.

Financial Highlights

· 63% increase in revenue for the period to $17.1 million, up from-$10.5 million in 2014.

· Loss before tax for the period amounted to $1.7 million (2014-profit of $0.25 million), after non-recurring exceptional items and share based payments amounting to, in aggregate, approximately $2.5 million.

· Comparable operating profit, excluding these items, was c$825,000 (2014-profit $255,000)

· An interim dividend of 0.35p per share was paid on 10 April 2015, further information on which is set out in the notes below. The Directors do not recommend the payment of a final dividend.

Operational Highlights

· Sustained performance in the human capital business, continued relationships with blue chip client base

· Project management business continues to progress, with the Pacific Energy Aviation fuel depot contract demonstrating ability to diversify the Company's capabilities away from its traditional marketplace.

· Company continues to differentiate its offering through innovation, such as the Hydraulic Tank Jacking System used to construct the tanks in PNG.

Post period end update on proposed acquisition

· Post period end, signed a non-binding heads of terms for the purchase of an earthmoving business in Australia.

· Audits of the acquisition target, asset valuation, Share Sale Agreement and annexures have been completed.

· Finalising due diligence on the target and securing formal approval from lenders in regards to a loan facility required for the acquisition.

· Anticipate publication the AIM admission document in relation to this transaction by no earlier than mid-December 2015, although certain elements of the process are outside of the Company's control and their timing cannot be guaranteed.

· Upon publication of the AIM admission document it is anticipated that the suspension from trading of the Company's ordinary shares will be lifted.

Paul Morffew, MRS CEO said:

"Our core service offering in the human capital and project management businesses performed well and we are on target with our strategy to become a leading supplier of solutions and products to the engineering market. We successfully listed on the AIM market of the London Stock Exchange and continue to develop our complementary service offering across our products. The new contracts won over the course of the year are a clear sign of this strategy in motion, and as we seek to expand organically and acquisitively the management are confident that the Company will deliver growth.

"Post period end, we are working hard on delivering the acquisition announced and have completed much of the critical pathway to executing this. "

For further information:

Chief Executives's Statement

During the past financial year we had our eyes firmly set on reaching our goals of continued growth and enhanced capabilities in all areas. We made good progress on many important fronts that will affect the long-term future for Management Resource Solutions and the Group's position in the industry. I am eager to report on the major milestones reached during the year and the future opportunities available to us.

Our business generates revenue from two sources: project management and contract personnel.

Our goal remains to become a leading supplier of solutions in risk management services and products from major engineering projects to smaller challenges in the mining, oil & gas and construction industries, expanding the business through a strategy of both organic growth and acquisition.

During the year we have continued to forge ahead in our core business and we have successfully demonstrated an ability to diversify our capabilities away from our traditional marketplace by being awarded the Pacific Energy Aviation (PNG) Limited aviation fuel depot contract. Year on year, group revenue has increased by 63% from $10.5m to $17.1m. Operating and delivering these services in regional and remote locations often offer challenging logistics, which requires high quality innovative solutions from design through to construction and commissioning, uniquely tailored to each project's complexity and size. Due to the nature of the project MRS had to find several unique solutions to restrictions and as a result is using the revolutionary Hydraulic Tank Jacking System to construct the tanks. This method is a first to Papua New Guinea and MRS is excited about spearheading innovative quality construction not only in Papua New Guinea, but to more developing Asia Pacific countries.

Management sees opportunity to acquire, profitable services companies at attractive multiples as our second revenue growth approach. Recent global weakness has produced a buyer's market for well-priced, well run, profitable companies in sectors of interest with acquired companies benefitting from MRS' scale, enhanced marketing and cross-selling opportunities as well as other synergies. For these reasons MRS is progressing toward completing its first acquisition of a plant hire company that will significantly increase the scale of our business. This acquisition will add significantly to the Group's capabilities and will be a major step toward becoming a full cycle service provider.

Corporately, we have achieved a major goal during the period under review, admission to the AIM market operated by the London Stock Exchange in December 2014. AIM is considered to be the most successful growth market in the world and it is a significant achievement for the company to join its ranks.

MRS did have some disappointments during the year, particularly the failed transaction to acquire the D&M group of companies due to an initial failure by our financier to honour his funding commitment and the eventual rejection of our subsequent alternative offer by the owners of the D&M group. The loss after tax for the year was $1,648,000 (2014 - profit of $52,000). The results were adversely affected to a significant extent by non-recurring, abnormal and non-cash costs as the following table demonstrates:

Adjusted earnings reflect certain costs incurred in the year which are not expected to be recurring. These principally relate to transaction costs including the IPO and aborted transactions. The salary costs treated as non-recurring relate to individuals hired and subsequently released in connection with the failed acquisition.

On behalf of the Board, I would like to thank all employees at MRS for their dedication and for the progress the company has made. I would also like to thank our shareholders for their continuing support.

Paul Morffew

CEO

Consolidated Statement of profit and loss and other comprehensive Income

for the year ended 30 June 2015

There was no other comprehensive income for the year (2014-nil).

Consolidated Balance Sheet

at 30 June 2015

Consolidated Statement of Changes in Equity

for the year ended 30 June 2015

Consolidated Statement of Cash Flow

for the year ended 30 June 2015

Notes to the consolidated financial statements for the year ended 30 June 2015

Accounting policies

Basis of preparation

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to the periods presented, unless otherwise stated.

These financial statements have been prepared on the historical cost basis, on the basis of going concern and in line with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) adopted by the European Union and in accordance with applicable UK law.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period or in the period of revision and future periods if the revision affects both current and future periods.

Going concern

The financial statements have been prepared on the going concern basis as, in the opinion of the Directors, at the time of approving the financial statements, there is a reasonable expectation that the Group will continue in operational existence for the foreseeable future.

Basis of consolidation

Where the Group has control over an investee, it is classified as a subsidiary. The Group controls an investee if all three of the following elements are present: power over an investee, exposure to variable returns from the investee, and the ability of the investor to use its power of affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.

Business combinations

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the consolidated balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair value at the acquisition date. The results of acquired operations are included in the consolidated income statement from the date on which control is obtained.

The Company was incorporated on 26 April 2012 for the purpose of acquiring the entire issued share capital of Management Resource Solutions Pty Ltd, which was previously the ultimate parent company of the Group. This acquisition took place on 24 August 2012 by the issue of the entire ordinary share capital of the Company to the shareholders of Management Resource Solutions Pty Ltd in exchange for their shareholdings in the Company.

This reconstruction is accounted for as an acquisition under common control. Accordingly the financial statements present the Group results as a continuation of the results of the Group previously headed by Management Resource Solutions Pty Ltd.

Corporate Income Tax

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax expense (income) is charged or credited outside the profit and loss when the tax relates to items that are recognised outside the profit and loss.

Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale. When an investment property that is depreciable is held by the Company in a business model whose objective is to consume substantially all of the economic benefits embodies in the property through use over time (rather than through sale), the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of such property will be recovered entirely through use.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities, where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Property, Plant and Equipment

Property, plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset.

Revenue 2015 2014

$'000 $'000

Revenue disclosed in the consolidated income statement is as follows:

Provision of services 17,089 10,490

________ ________

Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Board of Directors.

Segmental information is as follows:

2015 Papua New Guinea Australia Corporate Total

$'000 $'000 $'000 $'000

Revenue 9,793 7,296 - 17,089

Cost of sales (8,297) (5,934) - (14,231)

Administration expenses (93) (2,519) (1,933) (4,545)

________ ________ ________ ________

Operating profit/(loss) 1,403 (1,157) (1,933) (1,687)

Segment assets 603 877 1,015 2,495

Segment liabilities (720) (212) (411) (1,343)

2014 Papua New Guinea Australia Corporate Total

$'000 $'000 $'000 $'000

Revenue - 10,490 - 10,490

Cost of sales - (8,110) - (8,110)

Administration expenses - (1,784) (341) (2,125)

________ ________ ________ ________

Operating profit/(loss) - 596 (341) 255

Revenues from transactions with customers exceeding 10% of total revenue were as follows:

2015 2014

$'000 $'000

Customer A 6,845 9,927

Customer B 10,244 -

Others - 563

________ ________

17,089 10,490

________ ________

Non re-occurring costs of $1,421,000 (2014-nil) represent the professional fees and other associated costs incurred in the listing of the Company's share capital on AIM together with fees and other costs incurred in the abortive pursuit of a corporate acquisition.

Details of the share based payments charge are set out in note 23.

Operating profit 2015 2014

$'000 $'000

This is stated after charging the following:

Depreciation and amortisation 95 46

Lease payments 91 -

Foreign exchange differences 11 -

Employee benefit expenses 601 -

Staff costs and directors' emoluments 2015 2014

$'000 $'000

Staff costs (including directors)

Group

Wages and salaries 5,233 5,269

Pension costs 425 474

Social security costs 314 262

________ ________

5,972 6,005

________ ________

2015 2014

$'000 $'000

Directors' emoluments

Group

Fees and salaries 606 516

Social security costs 38 29

________ ________

644 545

________ ________

Company

Director's remuneration of $92,344 (2014 - $37,716) was paid by the Company

The remuneration, of the highest paid director was $ 391,362 (2014 - $347,657).

The key management personnel of the Group are considered to be the Directors

Staff numbers

The average monthly number of employees (including directors) during the year was as follows:

2015 2014

Group Number Number

Technical 32 20

Administrative 13 22

________ ________

Company

Administrative 1 1

________ ________

Taxation

Group

(a) The tax charge/(credit) comprises:

2015 2014

$'000 $'000

Current tax - 210

Deferred tax (39) (64)

Under provision in respect of prior years - (11)

________ ________

(39) 135

________ ________

(b) Reconciliation of total tax charge:

2015 2014

$'000 $'000

Accounting loss before tax (1,687) 187

- Tax at Australian statutory income tax rate of 30% (2014 - 30%) (506) 56

Effects of:

- unrelieved losses of the parent company 537 90

- under-provision for income tax in prior years - (11)

- depreciation and amortisation (13) 1

- other non-allowable items - (1)

- profits taxable at lower rates (57) -

________ ________

Tax (credit)/charge (39) 135

________ ________

Dividend Paid

2015 2014

$'000 $'000

Interim dividend of 0.35p per share paid on 10 April 2015 222 -

________ ________

222 -

________ ________

The Company has recently been advised that, whilst the Group had distributable reserves, the parent Company did not have sufficient distributable reserves to pay the above interim dividend and so it should not have been paid by the Company to its shareholders. At the relevant time, sufficient distributable reserves would have been available in the Company had its principal subsidiary undertakings declared dividends from their own distributable reserves. The Directors consider that it is in the best interests of the Company to take the necessary steps to regularise the position and accordingly it will enter into a deed poll to discharge any current or former shareholders that received a dividend from any obligation to repay any amount to the Company in connection with the dividend.

(Loss)/earnings per share

The calculation of basic (loss)/earnings per ordinary share attributable to equity holders of the parent company is based on a loss of $1,648,000 (2014 - profit of $52,000) and on 31,730,837 (2014-30,400,015) ordinary shares, being the weighted average number of ordinary shares in issue during the year.

There is no difference between basic earnings per share and diluted earnings per share as the Group reported a loss for the year.

Property, plant and equipment

Leasehold Plant Leased plant

improvements & equipment & equipment Total

$'000 $'000 $'000 $'000

Cost

At 1 July 2013 6 212 32 249

Additions - 37 - 37

________ ________ ________ ________

At 30 June 2014 and 1 July 2014 6 249 32 286

Additions - 95 122 217

Disposal - (17) - (17)

Reallocation - (167) 167 -

At 30 June 2015 6 160 321 486

________ ________ ________ ________

Depreciation

At 1 July 2013 6 67 14 86

Charge for the year - 41 4 45

________ ________ ________ ________

At 30 June 2014 and 1 July 2014 6 108 18 131

Change for the year - 76 19 95

Eliminated on disposals - - - -

Reallocation - (108) 108 -

At 30 June 2015 6 76 145 226

Net book value

At 30 June 2015 - 84 176 260

________ ________ ________ ________

At 30 June 2014 - 141 13 154

________ ________ ________ ________

Trade and other receivables (current)

2015 2014

$'000 $'000

Trade debtors 1,034 1,146

Prepayments 11 1,292

Other debtors 76 101

________ ________

1,121 2,829

_________ _________

Included within prepayments at 30 June 2014 were amounts totalling $1,252,134 relating to costs incurred in respect of a contract not yet in place at that date and therefore deferred. There were no such prepayments at 30 June 2015.

Included within Trade debtors were retentions of $431,820 (2014 - $nil).

There have been no provisions made in respect of bad debts.

Trade and other payables (current)

2015 2014

$'000 $'000

Trade creditors and accruals 318 629

Other creditors 336 1,572

Corporate income tax - 144

Borrowings 91 102

Employee benefits provision 275 128

Owing to a Director 323 323

________ ________

1,343 2,898

____ ____ __ ______

Financial instruments

The Group's financial instruments consist of deposits with banks, money market instruments, short-term investments, accounts receivable and payable, and borrowings.

The totals for each category of financial instrument, measured in accordance with IAS 39 as detailed in the accounting policies to these financial statements, are as follows:

2015 2014

$'000 $'000

Financial assets

Cash and cash equivalents 920 1,063

Receivables 1,110 1,537

______ ______

Total Financial Assets 2,030 2,600

Financial liabilities

Trade and other payables 1,252 2,796

Borrowings 109 148

______ ______

Total Financial Liabilities 1,361 2,944

In the opinion of the Directors, the fair value of the financial assets and financial liabilities is the same as the amount stated above.

Financial Risk Management/Capital Management Policies

The Directors' overall risk management strategy seeks to assist the Company in meeting its financial targets, whilst minimising potential adverse effects on financial performance. Risk management policies are approved and reviewed by the Board of Directors on a regular basis. These include the credit risk policies and future cash flow requirements.

Specific Financial Risk Exposures and Management

The main risks the Group is exposed to through its financial instruments are credit risk and liquidity risk. There have been no substantive changes in the types of risks the Company is exposed to, how these risks arise, or the Board's objectives, policies and processes for managing or measuring the risks from the previous period.

a. Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. The Group is also exposed by virtue of its concentration on a small number of major clients. The Group's maximum exposure to credit risk is its total receivables.

Credit risk is managed through maintaining procedures ensuring, to the extent possible, that customers and counterparties to transactions are of sound credit worthiness and includes the utilisation of systems for the approval, granting and renewal of credit limits, the regular monitoring of exposures against such limits and the monitoring of the financial stability of significant customers and counterparties. Such monitoring is used in assessing receivables for impairment. Depending on the division within the Group, credit terms are generally 15 to 30 days from the date of invoice.

Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating or in entities that the finance committee has otherwise assessed as being financially sound. Where the Group is unable to ascertain a satisfactory credit risk profile in relation to a customer or counterparty, the risk may be further managed through title retention clauses over goods or obtaining security by way of personal or commercial guarantees over assets of sufficient value which can be claimed against in the event of any default.

b. Liquidity risk

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the following mechanisms:

¾ preparing forward-looking cash flow analyses in relation to its operational, investing and financing activities;

¾ managing credit risk related to financial assets;

¾ only investing surplus cash with major financial institutions; and

¾ comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

At the balance sheet date the Group's only borrowings were those set out in note 19 and all cash resources were available on demand.

Share capital

Authorised, issued and fully paid Ordinary Shares Deferred Shares

Number $'000 Number $'000

At 1 July 2014 30,400,015 36,586 - -

4 July 2014 sub-division (36,220) 30,400,015 36,220

11 December 2014 Issue of shares for cash 2,416,667 37

At 30 June 2015 32,816,682 403 30,400,015 36,220

On 24 August 2012, the Company acquired the entire issued share capital of Management Resource Solutions Pty Ltd, the former parent company of the group, in exchange for the issue of the entire ordinary share capital of the Company to the shareholders of Management Resource Solutions Pty Ltd. This transaction was accounted for as an acquisition under common control.

The nominal value of the issued share capital in the Company was greater than the nominal value of the share capital in Management Resource Solutions Pty Ltd which was exchanged for it. In order to leave the Group's equity unchanged by the transaction the difference in nominal value was debited to a reorganisation reserve. Costs of $332,000 relating to the share issue were deducted from equity.

On 4 July 2014, each then existing Ordinary Share of €1.00 was subdivided into one Ordinary Share of €0.01each and one Deferred Share of €0.99 each. The Deferred Shares have no voting rights or rights to receive a dividend and have only a very limited right to any distribution on a return of capital.

On 11 December 2014, the Company's Ordinary Shares were admitted to trading on AIM. On the same date, the Company issued 2,416,667 new Ordinary Shares by way of a placing for cash at 30p per share to raise £725,000 (approximately $1.4 million) before expenses.

Warrants

In connection with its admission to listing on AIM, the Company issued 2,566,667 warrants to subscribe for

new Ordinary Shares, at 30p per share, to investors and advisors. The Warrants are exercisable in whole or

in part until the third anniversary of the admission to listing (11 December 2017) and are non-transferable. No warrants were exercised during the year and all remained outstanding at 30 June 2015. The notional value of the warrants at the date of issue has been calculated and is not material. No application has been made or will be made for the Warrants to be admitted to trading on AIM.

Share based payment arrangements

Grant of Options

On 11 December 2014, in connection with the admission to listing of the Company's Share Capital, the following options over ordinary shares of €0.01 in the capital of the Company ("Ordinary Shares") were granted to directors and employees of the company.

The options are exercisable (in whole or in part) at any time up to the seventh anniversary of the date of the grant after which they will lapse.

The Group recognised a share based payment charge of $216,813 (2014-nil) being 0.5p and 25.2p per share in respect of the options exercisable at 30p and €0.01p respectively (calculated using the Black-Scholes Model).

The inputs to the Black-Scholes Model were as follows:

Share Price 30p

Exercise price 30p or €0.01 as applicable

Expected volatility 30%

Risk free rate of interest 0.5%

Expected life 2 years

All 3,264,417 options, representing 9.9% of the Company's issued share capital, were outstanding at 30 June 2015.

Related party transactions

Disclosure regarding remuneration of the Directors is given in note 8, and the Directors' Report. Details of the Group's subsidiaries, which are considered to be related parties, are given in note 15.

Environmental Auditors Australia Pty Ltd, a company controlled by Paul Morffew, a director, and his wife, provided office space at a charge of $56,000 (2014 - $52,000).

At the balance sheet date there was an interest free loan to the Company of $323,000 (2014 - $323,000) from Paul Morffew, a director. The loan has no specified repayment terms. 

Key performance indicators

The Group's current key performance indicators are building revenue, and expanding our diverse client base. Relevant information is reported in the CEO's Statement. Success is also measured by the identification and acquisition of suitable companies which will allow MRS not only to expand its services but also to increase its profits. This is highlighted in the CEO's Statement.

Principal risks

There are risks associated with the Group's business. The Board regularly reviews the risks to which the Group is exposed and has in place a strategy to mitigate these risks as far as possible. The following summary, which is not exhaustive, outlines some of the risks and uncertainties facing the Group at its present stage of development:

1 General risks

Reliance on key management

The responsibility of overseeing the day-to-day operations and the strategic management of MRS depends substantially on its senior management and its key personnel. There can be no assurance given that there will be no detrimental impact on MRS if one or more of these employees cease their employment.

2. Risks relating to MRS's Businesses

2.1 General

2.1.1 Operating risks

The Group's business planning is carried out on the basis of expected future work. The Group is reliant upon securing new contracts. There is a risk that expected contracts will not be won. The directors mitigate this risk by monitoring the pipeline of future contracts.

The operations of MRS may be affected by various factors, including operational and technical difficulties encountered in resources; difficulties in commissioning and operating plant and equipment; mechanical failure or plant breakdown; adverse weather conditions; industrial and environmental accidents; industrial disputes; and unexpected shortages or increases in the costs of consumables, spare parts, or plant and equipment.

2.1.2 Additional requirements for capital

MRS's capital requirements depend on numerous factors. To fully realise its Growth Plan MRS will require further financing in addition to amounts raised under a Prospectus. Any additional equity financing will dilute shareholdings. Any debt financing, if available, may involve restrictions on financing and operating activities. If MRS is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations and scale back projects as the case may be.

2.2 The Consulting Business

2.2.1 Personnel subject to workplace safety on client sites

The Consulting Business' personnel deliver services on site. Consequently, personnel may be subjected to risks to their health and safety through the actions, inactions and negligence of third parties. Numerous losses may stem from injury or death to personnel in such a scenario and such losses may have an adverse effect on MRS's profits, its results, its balance sheet and its financial position.

2.2.2 Professional services liability

Professional services liability, in a number of different forms, attaches to the services offered by the Consulting Business. A client's reliance on the services provided by the Consultant Business may cause loss or damage to the client. If such losses are proved to be in excess of the insurance policy held by the Consulting Business, or are outside the terms of such policy,

The Directors regularly monitor such risks and will take actions as appropriate to mitigate them. The Group manages its risks by seeking to ensure it is in compliance with the terms of its agreements, and through the application of appropriate policies and procedures, and via the recruitment and retention of a team of skilled and experienced professionals.