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The power of the advertising ‘pound’ stretches so much further than you realise
Stakeholder engagement
We believe Ocean Outdoor will grow at the fastest rate whilst keeping stakeholder engagement at the forefront of its business planning.
To this end, we operate and continually update our processes of:
1. Identifying stakeholders
2. Requesting feedback on all aspects of its business
3. Incorporating this feedback into our business.
Board structure and practices
The board comprises both Executive and Non-Executive directors who monitor and assess all aspects of our business.
Execs:
Tim Bleakley
CEO
Stephen Joseph
COO & CFO
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Non-Execs:
Melissa Bethell
Chair
David Caplan
Non-Executive Director
Neil Prime
Independent Non-Executive Director
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Risk management and controls
Tools used by the Board to monitor key risks include the regular review of potential emerging risks that could threaten the Group’s performance or achievement of its strategic objectives, such as market trends and insight reports and competitor activity. Where new risks are identified, the potential impact of these are assessed, proportionate mitigating actions are put in place, and these are subjected to ongoing review.
The main risks and uncertainties identified by the Group are as follows, and steps have been taken to mitigate these risks where possible:
The Group operates in a highly competitive market
The Group operates in a highly competitive market and may not be able to maintain or increase its current advertising and sales revenues or market share. The Group competes for advertising revenue with other outdoor advertising operators, as well as with other media, such as radio, newspapers, magazines, television, direct mail, mobile devices and internet-based services. Competitive pressures could cause the Group to lose market share, require it to lower prices, increase marketing expenditures and increase the use of discounting or promotional campaigns, and restrict its ability to increase prices. These or other developments could materially affect the Group’s sales volumes and margins and result in a decrease in its operating results, which could have a material adverse effect on the Group’s business, financial condition and results of operations.
The Group’s sites and other technology systems and operations could be exposed to damage or interruption
The Group operates in a highly competitive market and may not be able to maintain or increase its current advertising and sales revenues or market share. The Group competes for advertising revenue with other outdoor advertising operators, as well as with other media, such as radio, newspapers, magazines, television, direct mail, mobile devices and internet-based services. Competitive pressures could cause the Group to lose market share, require it to lower prices, increase marketing expenditures and increase the use of discounting or promotional campaigns, and restrict its ability to increase prices. These or other developments could materially affect the Group’s sales volumes and margins and result in a decrease in its operating results, which could have a material adverse effect on the Group’s business, financial condition and results of operations.
Changes in technology may impact consumer and advertiser behaviour
The advertising industry will continue to be affected by changes in technology, with these changes likely leading to increasing media options for consumers. If these changes drive advertising away from DOOH advertising, this could have a material adverse effect on the Group’s business, financial condition and results of operations.
The Group’s operations are vulnerable to any adverse developments to the UK, Dutch and Nordic economies, market conditions and the corresponding legal and regulatory environment
The Group’s operations are exposed to the prevailing economic and market conditions, as well as the legal and regulatory environment. Periods of a slowing economy or recession, or periods of economic uncertainty, may be accompanied by a decrease in advertising which would reduce the Group’s advertising revenues and have an adverse effect on the Group’s revenue, profit margins, cash flow and liquidity. There has also been an increased market uncertainty as a result of the UK leaving the European Union. This may impact the Group (including its business, employees, operations and assets) and could have a materially adverse effect on the business, financial condition and results of operations of the Group in the future. Material decreases in revenue could result in fixed costs exceeding contribution and the Group suffering losses and resulting in operating cash outflows.
The Group performance could be impacted by increasing utility costs
The Group is required to pay for utilities, subject to the terms and conditions of its agreements with the landlord, for its advertising locations. As such, it is exposed to increases in utility costs, with electricity required to operate the Group’s digital screen portfolio. The Group mitigates this risk wherever possible by signing long term energy supply contracts with green energy suppliers.
The Group’s operations could be impacted by the war in Ukraine
Whilst the war in Ukraine is geographically outside markets in which the Group operate, its wider impact is well beyond that of just Ukraine, and there is potential the conflict could escalate and create further uncertainty across the whole of Europe and beyond. To date, the war has not had a significant financial impact on the performance of the business, however the Group would be impacted should there be macroeconomic implications which could lead to a materially adverse effect on the Group.
Ethics and anti-corruption
This code applies to all operations of the Group and sets out the minimum standards which the Board expects from staff in their internal and external dealings with colleagues, customers, stakeholders and third parties.
1.1 Basic Standards of Conduct
(a) We will conduct every aspect of our business with honesty, integrity and openness, respecting human rights and the interests of our employees, customers and third parties.
(b) We will take into account the legitimate interests of third parties with whom we have dealings in the course of our business.
(c) We will maintain the highest standards of integrity – for example, Ocean will not make commitments we cannot or do not intend to keep.
1.2 Employees
Each Group company:
(a) is committed to creating and maintaining a safe and healthy working environment for its employees;
(b) will strive to create a workplace in which there is mutual trust and respect and where every person feels responsible for the performance and reputation of our company;
(c) will respect the individual and each other’s rights;
(d) will work towards achieving a diverse workforce, recruiting, employing and promoting employees only on the basis of objective criteria and the qualifications, abilities and enthusiasm needed for the job to be performed;
(e) will maintain good communications with employees through our information and consultation procedures; and
(f) will assist employees in realising their potential.
1.3 Customers
Ocean is committed to providing safe, value for money, high quality, consistent, accessible and reliable services to its customers.
1.4 Business Partners and Stakeholders
(a) We aim to develop strong relationships with our suppliers, stakeholders and others with whom we have dealings, based on mutual trust, understanding and respect.
(b) In those dealings, we expect our partners to adhere to business principles consistent with our own.
(c) Group companies will conduct their operations in accordance with all applicable regulations.
1.5 Compliance with Law
All members of the Group will comply with the laws and regulations applicable wherever they do business. Appropriate training will be provided for employees as necessary.
1.6 Business Integrity
(a) No Group company shall offer, give, seek or receive, either directly or indirectly, improper advantages for business or financial gain and no employee may offer, give, seek or receive any gift or payment which is, or could be construed as such. If an employee is in any doubt as to whether he or she may make or accept an offer, that employee should discuss the issue with his or her manager or a more senior executive.
(b) Group accounting and other records and supporting documents must accurately describe and reflect the nature of the underlying transactions.
(c) The Group will not facilitate, support, tolerate or condone any form of money laundering.
1.7 Conflicts of interest and confidentiality
(a) Whilst Ocean respects the privacy of its employees, all Group employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the Group.
(b) Group employees and consultants must not seek gain for themselves or others through misuse of their positions or company property.
(c) All actual and potential conflicts (including those arising from the activities or interests of close relatives or partners) should be disclosed to and discussed with an employee’s line manager.
(d) Information received by anyone in the course of his or her employment must not be used for personal gain or for any purpose other than that for which it was given.
(e) Where information is confidential, that confidentiality must be respected.
