9
The Group is not able to fully assess the precise impact of the above and other such changes to the accounting
standards on future reporting periods as at the date of this Prospectus, however, these could have a material and
adverse effect on the Group's net income and financial position, including related key performance indicators
such as EBITDA, operating profit, interest, profit before tax, operating margin, return on capital employed and
net debt.
B. Operational risks relating to the Group
The Group's operations are exposed to COVID-19 risks
The Group continues to closely monitor the risk presented by the global COVID-19 pandemic, with Board
oversight and management action feeding down through each business. The overriding priority has been to ensure
the safety and well-being of staff and customers, by following relevant Government and public health authority
guidance and implementing additional health and safety measures that go beyond such guidance where
appropriate.
The first wave of the COVID-19 outbreak led to a rapid reduction or shutdown of services across the Group and
during this period actions were taken to ensure staff and customers could return to providing or using the Group's
services with appropriate safety equipment, cleaning procedures and social distancing measures in place
increasing confidence in the services provided. While passenger levels across many of the Group's services were
starting to recover over the summer months when the first wave of the outbreak abated somewhat, the second
wave of the outbreak has slowed that recovery for the time being.
Operationally the Group continues to work closely with public bodies, customers, suppliers, third party operators,
staff and passengers to seek to ensure that the Group's services are safe and management are prepared to react to
future developments. However the risk of further waves of the COVID-19 outbreak and continued and/or future
disruption to service remains, with continuing uncertainty on the extent and duration of any such outbreak and
disruption, which could have further material adverse effects on the Group's business and results of operations.
Whilst the Group's year-on-year monthly revenue experienced growth of 15.7 per cent. and 17.8 per cent. in
January and February 2020, respectively, since the start of the COVID-19 pandemic, it declined by 11.6 per cent.
in March 2020, 51.1 per cent. in April 2020 and 52.8 per cent. in May 2020. However, the decline reduced in the
following months to 47.4 per cent. and 34.9 per cent. in June and July 2020, respectively.
Continuity of the Group's businesses is dependent on the Group's IT systems, which may fail or be subject to
disruption
The Group's operations are highly dependent on advanced information systems, including internal bespoke and
third party licensed software, and there is a risk that such technology could fail. In addition to such failure, there
can be no assurance that such technology or systems will not be subject to damage or interruption caused by
human error, unauthorised access, computer viruses, denial of service, attacks, sabotage, natural hazards or
disasters or other similarly disruptive events, including other security breaches. In the event of failure or disruption
of such information systems, the Group has in place disaster recovery procedures, security measures, support and
maintenance, usually provided in-house in the first instance and thereafter by third party contractors, but such
procedures and measures may not anticipate, prevent or mitigate any material adverse effect of such failure or
disruption on the Group's business, financial condition and results of operations.
Furthermore, the Group may at any time be required to expend significant capital or other resources to protect
against failure and disruption, including the replacement or upgrading of its existing business continuity systems,
procedures and security measures. If replacements, expansions, upgrades and other maintenance are not completed
efficiently or there are operational failures, the quality of service experienced by passengers may decline. If, as a
result, passengers were to reduce or stop their use of the Group's services, this could have a material adverse effect
on the Group's business, financial condition and results of operations. Additionally, if the Group is unable to
acquire or implement new technology, it may suffer a competitive disadvantage, which could also have a material
adverse effect on the Group's business, financial condition and results of operations.
The Group relies on the ability of management to successfully implement initiatives and other organisational
changes designed to increase operating efficiencies and improve results of operations
To reflect changing economic, market and technological conditions, from time to time management undertakes
initiatives and other organisational changes designed to increase operating efficiencies and improve results of