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Management framework

Members of the board

The responsibility for managing and leading PFK is shared between the Managing Director, Chairman and the board of Directors.

PFK’s board members are built up of a diverse range of experience and culture, and work collaboratively to define and guide the company’s vision.

Stephen Lancaster

Stephen Lancaster

Managing Director

Stephen is the managing director of PFK and serves on our board of directors. He has worked in the property sector for over 25 years and is a chartered surveyor and registered valuer.

Prior to joining PFK Stephen held senior roles with Rowland Homes, Persimmon Homes and Story Homes. He has also worked as an independent consultant, and participated in a successful joint venture for an investment-driven dementia care home.

John Wilson

John Wilson

Non-executive Director

John is a consultant and non-executive director at PFK, advising on commercial strategy, acquisitions and disposals, and corporate governance. A founder of Baines Wilson Commercial Law, he has over 30 years of hands-on commercial experience.

John’s background includes advising businesses of all sizes, across virtually all industry sectors, including some of the largest companies in the world. An experienced negotiator, John specialises in assessing commercial situations expeditiously and devising effective strategies and solutions.

John Rowlands

John Rowlands

Non-executive Director

John is a non-executive director at PFK; a local entrepreneur with over 35 successful years in business, he is the founder of the manufacturing firm Romar Innovate, as well as the residential and commercial property business Rowlands Holdings.

Having started his career at Sellafield, John grew Romar into a £7m turnover company before divesting himself of the business in 2017. He has chaired the Copeland Community Foundation, and continues to expand Rowlands Holdings.

Katie Milbourn

Katie Milbourn

Non-executive Director

Katie is a non-executive director of the PFK board. She is a member of the Royal Institution of Chartered Surveyors, a fellow of the Association of Agricultural Valuers and her background is in beef and arable farming at Crosby-on-Eden.

Katie has professional experience with Savills as a rural practice chartered surveyor, and as a private sector member of the Cumbria LEP, representing north and rural Cumbria. She is currently a Director of NFAN, the national organisation for farm attractions.

Stephen Dunn

Stephen Dunn

Non-executive Director

Stephen is a Financial Consultant, non -executive director of PFK and chairs the Audit Committee. Stephen was a Practicing Accountant with KPMG and, in a career spanning 40 years, has been an Audit Partner, a Corporate Finance Partner and a Forensic Accountant. He is a Finance Graduate, a Chartered Accountant, a Chartered Tax Advisor, a Chartered Fellow of the Chartered Institute of Securities and Investment, and a Chartered Wealth Manager.

Stephen has a flair for corporate transactions and has substantial experience of acquisitions, flotations, corporate restructuring, disposals and a myriad of project fundraising exercises. As a founder of Corporate Finance within KPMG in the North West, he worked on some of the region’s larger transactions.

Jeanette Brown

Jeanette Brown

Non-executive Director

Jeanette is a non-executive director of PFK and is acting board chair. She also serves on the audit and remuneration committees, and works closely with the Managing Director on our approach to strategy and governance.

Jeanette is a qualified chartered accountant and insolvency practitioner, and prior to joining PFK was a partner at accountancy firm Dodd & Co, where she was instrumental in establishing Dodd & Co Healthcare, a national leader in the healthcare finance sector.

Bernard Wharam

Bernard Wharam

Non-executive Director

Bernard is a non-executive director of the PFK board with over 30 years of professional experience in the motor industry, including senior roles with BMW, Mercedes-Benz, Toyota and Pendragon.

Bernard specialises in business improvement; he also continues to operate a global automotive consultancy practice, delivering award winning projects for some of the world’s leading vehicle manufacturers.

Rachel Lightfoot

Rachel Lightfoot

Executive Director

Rachel is an executive director of PFK and serves on our board of directors; prior to joining the board she worked as our head of planning, responsible for planning applications and business development. Rachel has been a member of the Royal Town Planning Institute since 2004.

Rachel was formerly the owner and MD of Positive Planning Solutions, responsible for all aspects of planning applications and appeals. Her professional expertise includes land identification, site promotion and commercial planning applications.

A strong and robust risk management framework

Our systematic and robust approach aims to continuously monitor those risks, our risk management and internal controls systems and evolve our approach accordingly.

Risk management approach

Good risk management is fundamental to our ability to meet our operational and strategic objectives. The competitive market in which we operate requires effective decision making; ensuring that the risks the business takes are adequately assessed and challenged and appropriate returns are achieved. PFK must also retain our overall resilience to risks over which we have limited control through our disaster recovery and business continuity procedures.

Our overall risk management ambition remains – to foster and embed a culture of risk management that is responsive, forward looking, consistent and accountable.

Robust risk assessment

Our systematic risk management approach is designed to identify risks to the business using both a bottom-up and a top-down approach. A risk scoring matrix is used to ensure that a consistent approach is taken when assessing the overall impact to the Company.

Mapping our key risks

Hover over the table below to reveal the key risks.

Post-mitigation
LIKELIHOODUnlikely Possible Likely Almost certain
9
Brexit
1
Market
4
People
7
Transactional
3
Regulatory and insurance
6
Controls
2
Financial
5
Health and safety
8
Development
Minor IMPACT Moderate Major Extreme

Managing principal risks and potential future uncertainties

The Directors have undertaken a robust and systematic assessment
of PFK’s principal risks. These have been considered within the
timeframe of five years.

Table of principle risks and uncertainties:

Category of risk

1. Market

Risk description

Weak macro-economic conditions leading to long-term flat or negative house price inflation and stale property market

Impact on strategy

Economic uncertainty may cause drop in home ownership; asset values fall; lack of growth for the business

Risk appetite

PFK business is based on taking well-judged decisions on house price and rental markets as well as the potential for development projects

Mitigation

  • Wider market risk is largely dependent on factors PFK cannot influence
  • Ensuring the Company offer a broad range of services which are not only required in a strong market
  • Maintenance of cash banking where possible and monitoring banking covenants
  • Maintain diverse income portfolio, exercising active asset management and implementing future strategic focus on economically active sectors/locations

Category of risk

2. Financial

Risk description

Lack of availability or volatile pricing in respect of debt or equity finance for PFK to achieve its objectives

Impact on strategy

Reduced or limited ability to take advantage of business opportunities; unable to grow PFK

Risk appetite

PFK has no appetite to commit to investment without secured funding at the appropriate rates

Mitigation

  • Appropriately qualified head office team team Excellent relationship management with PFK Bankers
  • Ability to control the timing and quantum of new acquisitions to reduce cash outflows if required

Category of risk

3. Regulatory and insurance

Risk description

Failure to meet current or increased legal or regulatory obligations

Impact on strategy

Fines, penalties and insurance claims; damage to reputation; loss of operational efficiency and competitiveness; increased costs

Risk appetite

PFK has no appetite for legal and regulatory breach due to the risks this poses to its staff, customers, assets and reputation

Mitigation

  • Ongoing management and staff training to enable ability to advise internally and review the regulatory horizon
  • Use of external specialists to advise and maintain forward looking focus
  • Close alignment and involvement with leading industry groups/bodies – RICS
  • Management champion best practice

Category of risk

4. People

Risk description

Failure to attract, retain and develop our people to ensure that we have the right skills in the right place at the right time. This is an acute risk issue as there is currently limited individuals in this geographic location to fulfil the necessary roles within PFK.

Impact on strategy

Reduced ability to deliver business plan and strategy; reduced control; inability to grow market share failure to evolve to maintain competitiveness in a customer focussed market

Risk appetite

PFK have no appetite to accept a lack of appropriate skills, expertise and experience that would materially diminish our ability to deliver to our shareholders and clients

Mitigation

  • Succession plans are in place and reviewed regularly
  • Management and leadership development training
  • Retention policies in place for key staff including careful monitoring of remuneration packages to ensure competitiveness in the market
  • Performance reviews and appraisals
  • Identification of opportunities to develop and provide internal career development

Category of risk

5. Health and safety

Risk description

A significant health and safety incident as a result of inadequate or inappropriately implemented health and safety procedures and controls within PFK

Impact on strategy

Harm to customers, investment tenants, employees, contractors or visitors; possible legal action and/or fine; subsequent reputational damage

Risk appetite

PFK has no appetite for health and safety breaches both within its own operations

Mitigation

  • Internal management of health and safety
  • External advice taken as and when appropriate and to be commensurate with the scale and complexity of the business

Category of risk

6. Controls

Risk description

Weak environment of systems, controls and culture resulting in the failure of mitigants regarding the likelihood and impact of other principal risks.

Impact on strategy

Weak underlying control environment does not support the efficient operation of the business; increased costs and lower profitability; compliance failings; reputational damage

Risk appetite

PFK accept that problems may occur and risks are part of doing business. However, all such problems should be contained within an effective control framework and supporting culture. Our focus is on continuously improving this framework

Mitigation

  • Implementation of an operating model which includes a robust framework of controls, governance, processes and systems that are specifically designed to mitigate vulnerability or ineffectiveness whilst empowering staff
  • Use of external specialist advisers where required

Category of risk

7. Transactional

Risk description

Unable to fully implement growth strategy due to failure to transact and acquire assets on acceptable terms and/or inability to enhance PFK assets

Impact on strategy

Acquisition of or Investment in unprofitable schemes will depress PFK growth. Lack of competitiveness in acquiring investments will lead to reduction in scale and profitability of business

Risk appetite

PFK business is based on taking considered risks for appropriate returns in the acquisition, of investment assets and the delivery of client services

Mitigation

  • Experienced team assembled to focus on appropriate investment and excellent client services
  • Close review and monitoring by the Board (as appropriate) having regard to applicable capital management and robust budgeting
  • Use of external professionals where appropriate

Category of risk

8. Development

Risk description

Excessive capital allocated to activities which carry development risk

Impact on strategy

Exposure to risk of cost overrun/income shortfall

Risk appetite

Potentially some of PFK returns will be based on considered capital allocation which includes such activities

Mitigation

  • Capital allocated to development will be carefully monitored
  • Current board member with specialist development skills
  • Review and monitoring of all such schemes by the Board
  • Potentially diverse portfolio of development schemes for both sale and investment
  • Expert advisers/professional team and experienced development partners

Category of risk

9. Brexit

Risk description

Negative impact of Brexit

Impact on strategy

Increased construction costs; asset and portfolio values fall; inability to build competitive investment portfolio; lower demand for PFK assets and downward pressure on the property services market. Decrease in need for a broad spread of professional services

Risk appetite

PFK business is based on taking well judged decisions on house price and rental markets as well as the potential for development projects and the appropriate expansion of property services

Mitigation

  • The economic implications resulting from the impact of Brexit are largely beyond the control of PFK
  • Ability to generate cash in uncertain economic periods
  • Appropriate levels of cash/debt and appropriate management
  • Maintaining an open dialogue regarding Brexit impact with key third parties, suppliers and industry bodies and clients
  • Dynamic approach to customer service ensuring full client management during Brexit negotiation period
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