Group Review 2016

Our Group Review 2016 outlines our strategy for sustainable growth and our work to support clients through a continued period of global challenges.

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Society and our clients are facing unprecedented global challenges. Population growth, urbanisation and prosperity are putting pressure on our finite natural resources and the environment. Fossil fuel consumption resulting in emission of greenhouse gases are contributing to global warming and climate change.

At the same time, rapid developments in technology and the digital economy, the backbone of the fourth industrial revolution, are transforming the way we live and work, creating enormous opportunities and challenges for society and business. The global trade in goods and services relies on economic stability and the safe, secure and sustainable operation of the critical infrastructure and systems in our ever-more complex global supply chain.

LR has an increasingly important role to play. Our strategy is to strengthen our current business and extend our portfolio of professional services into new markets created by these global challenges impacting complex critical infrastructure. Our leading safety culture and expertise in managing risk will enable LR to offer client value from our compliance, assurance and performance solutions. This will deliver resilient financial performance and sustainable growth.

Highlights of our year 2015/16 include our work involving the convergence of physical and cyber, sensors and automation technologies to enable their safe and secure development for the benefit of our clients:

  • cyber-enabled shipping and autonomous ships
  • additive manufacturing - including the third-party certification of AM parts and components
  • deployment of unmanned aircraft systems (UAS)
  • remote auditing in the assurance arena.

Chairman Thomas Thune Andersen reports that the continued slump in oil prices throughout 2015/16 combined with the slowdown in new construction orders in marine and uncertainty as a result of Brexit, created challenging economic conditions.

Alastair Marsh, Chief Executive says: “When I look back over the year, we’ve achieved a huge amount despite very difficult trading conditions. 2016 was the year we put the foundation blocks in place for a new LR that is better equipped to support our clients’ challenges and opportunities. Looking ahead there are very real grounds for optimism in 2017.

“I’m immensely proud that through our efforts we were able to contribute £20.2 million to the Lloyd’s Register Foundation to support the important work that it funds in research into emerging technologies, science and education.”

The Lloyd’s Register Foundation’s 2016 Annual Review outlines the impact it’s making in becoming one of the world’s leading engineering research and education charities.