S172 statement

The board of Directors of the Group consider, both individually and together, that they have acted in the way they consider, in good faith, would most likely promote the success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172 (1) (a-f) of the Companies Act 2006) in the decisions taken in the year ended 31^st December 2020 and summarise those actions in the table below.

Section 172 interests	Actions in the period
(a) Likely consequence of any decision in the long term	The board considers all decisions on the basis of reports made to it by the executive directors. Supporting papers setting out the relevant facts are provided and set out the background and reasons for any proposals and the associated costs, benefits and risks and impact on our stakeholders. All decisions are taken with the long term interests of our stakeholders in mind. Key decisions made during the year were: – Draw down of new loan facilities of £15.2m and €8.7m repayable in 2026. – Actions taken following the COVID-19 pandemic to conserve cash and profitability, such as adopting government schemes to defer VAT payments and furlough staff and further cost reductions post year end through staff redundancies.
(b) Interests of employees	The SR Group’s long-term success is predicated on the commitment of our employees to our purpose, and their demonstration of our values on a daily basis. The Directors recognise that our employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, The SR Group’s Directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible. The SR Group provides its employees with information on matters of concern to them and consults with them on a regular basis, so that their views are taken into account when making decisions, which are likely to affect their interests. The SR Group engages with its employees to ensure that we foster an environment that they are happy to work in and that best supports their well-being. The diversity agenda is critical to our group’s success. Due to the nature of the work we undertake and the services we provide we are at the forefront of promoting to our clients the value of a more diverse workforce representative of wider society. Further details are given in the employees policies section of the Directors’ report.
(c) Foster business relationships with suppliers, customers and others	The success of the Group is dependent upon the strong relationships it builds both externally with its customers and suppliers and internally with employees and stakeholders. The SR Group seeks the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships. The SR Group continuously assesses the priorities related to customers and those with whom we do business, and the Board engages with the businesses on these topics, for example, within the context of business strategy updates and investment or divestment proposals.
(d) Maintain a reputation for high standards of business conduct	The SR Group is economically, environmentally and socially responsible, and is a values-driven business, whose values are defined as a result of a company-wide engagement process. The SR Group’s Code of Conduct, specific Ethics & Compliance manuals (which include Whistleblowing), and its Modern Slavery Statement, to ensure that its high standards are maintained both within The SR Group, and the business relationships we maintain. This, complemented by the way the Board is informed and monitors compliance with relevant governance standards help assure its decisions are taken and that The SR Group acts in ways that promote high standards of business conduct.
(e) Act fairly as between members of the company	After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on all stakeholders. In doing so, our Directors act fairly as between the SR Group’s members.
(f) Impact of the operations on the community and the environment	We are mindful of what we do in respect of the impact on the environment. We are constantly considering how we can conduct ourselves in a way that reduces our carbon footprint. This is evident in the sustainable manner in which we look to conduct our business.