Strategic report
Governance
Financial statements
93 OCU Group Annual report and financial statements 2026
Risks continued
Third-party risk Risk area: Strategic and commercial Potential impact
Financial performance and liquidity Risk area: Financial Potential impact Trading, contract or working capital underperformance could restrict investment, reduce resilience or affect covenant compliance. International growth increases funding and foreign exchange exposure.
Compliance with relevant laws and regulations Risk area: Legal, regulatory and tax compliance Potential impact Non-compliance may cause fines, claims, loss of licences, operational disruption or reputational harm. International expansion broadens the Group’s legal and regulatory obligations.
Climate change Risk area: Sustainability Potential impact
Supplier or subcontractor failure could affect safety, quality, delivery, cost, compliance or reputation. Connected international supply chains also increase cyber, ethical and continuity exposure.
Physical and transition risks from climate change may disrupt sites and supply chains, increase costs or affect competitiveness, reputation and infrastructure resilience.
Mitigation A diversified, quality-assured network is governed through standard terms, due diligence and structured onboarding. Safety, risk and assurance requirements are cascaded through the supply chain, while OCU One and Group procurement improve performance visibility.
Mitigation Centralised treasury, forecasting and Board review support liquidity management. During FY26, tighter work‑in-progress control, timely invoicing and stronger collections improved working capital discipline. Interest rate and foreign exchange exposures are hedged where appropriate.
Mitigation Legal and regulatory developments are monitored by internal specialists and external advisers. The Integrated Management System, Code of Conduct, mandatory training, internal audit and functional ownership provide consistent controls across acquired businesses and international operations.
Mitigation The Group’s sustainability strategy and TCFD-aligned assessment support mitigation and adaptation. ESG Committee oversight is supported by operational metrics, carbon reporting and supply chain engagement. OCU continues to invest in lower-carbon plant, fleet and materials, while incorporating climate considerations into project planning and business continuity.
This strategic report has been approved by the Board and signed on its behalf:
Michael Hughes Chief Executive Officer
28 August 2026
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