The fact that the Group has operations in a large number of locations increases its ability to withstand events which cut power and communications or cause equipment malfunction or result from theft.

Financial and Commercial Management
RPS endeavours to conduct business in an open and fair manner.A significant part of RPS’ success derives from the clarity and accountability of its management structure. The day-to-day business of the Group is carried out in business units which from time to time are grouped in either geographical or functional segments. Each business unit is treated as both a separate business for the purposes of budgeting and accounting and as part of the Group-wide network for marketing and business intelligence purposes. Each unit is managed by directors who are responsible for the development of their office and accountable for its performance to the relevant Board.

Each business unit prepares a Business Plan which defines the activities and scope of business to be conducted by the office. The budgets quantify the expectations for the Group and comprise a key element of the Business Plans.The Plans (including budgets) are agreed with the Group Board. The businesses in the UK are supported by centrally run accountancy and personnel functions.The Dutch, Irish, North American, Malaysian and Australian businesses have their own accounting and personnel functions. RPS has a detailed financial reporting management system, which

includes checks and reviews, financial modelling, accountability and transparency at every level.

Operational staff have no access to the underlying processing of transactions. Invoices from suppliers are approved by the Operational Directors and are sent to the finance function for processing and payment. Remittances from clients are received by the finance function.This segregation of duties within the finance team itself and between the offices and the accounting function ensures accountability and sound financial practice at every level.

Business unit and office financial results are reviewed monthly by relevant boards and directors.

This detailed review, together with the checking and reconciliation work done by the accounting team, ensures the high degree of scrutiny required to minimise the possibility of mistakes, irregularity or fraud remaining undetected.

The Group’s Executive Committee, which comprises the Group’s Executive Directors and the Company Secretary meets at least once a month and discusses newly emerging risks as they occur.The minutes of these meetings are provided to the Non-Executive Directors.

The RPS Board monitors the Group’s financial performance on a monthly basis using detailed budgets as the benchmark. From time to time future performance is estimated by reference to forward order books, although the nature of most contracts means that such forecasting cannot be completely accurate and the

degree of imprecision cannot be statistically tested.

The Group’s financial instruments comprise cash, bank loans and items such as receivables and payables that arise directly from its operations.The main purpose of these instruments is to provide finance for the Group’s operations.

The Group reports its results in sterling and has operations in Ireland, USA, Canada, Australia, Malaysia and the Netherlands that have functional currencies other than sterling. As a result the Group’s balance sheet and income statement can be affected by movement in the exchange rate between sterling and the functional currencies of the overseas operations.The Group does not hedge such translation exposures.

Where operations have part of their trade in currencies other than their functional currency they endeavour where possible to match the currency of revenues and cost of sales.The Group occasionally uses foreign exchange contracts and loans to manage transactional risks.

It has been and remains the Group’s policy that no trading in financial instruments shall be conducted.

The Group has strong review procedures for monitoring and controlling cash flows and the requirements for debt. This includes the production of continuous cash flow projections and the reporting and review of daily cash collections against targets.