Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas

Key Risks
2. General risks relating to the operating businesses of AJL and the markets in which it operates (cont.)
2.14 Reliance on Key Personnel
Like other companies, AJL’s performance is dependent on the ability of its senior executives and key personnel to manage and grow its business and
respond to customers needs. The loss of the services of its senior executives or key personnel, or a loss of the ability to attract and retain qualified and
competent employees, could have a material adverse effect on AJL’s operations and financial results. Continuity and retention of staff is important for
customer retention and ongoing customer negotiations. A change of staff or resourcing issues could affect ongoing relationships with various parties
connected to AJL.
2.15 Increased or new competition
In common with many other companies, AJL faces competition in its businesses. To the extent that there are new entrants or changes in strategy by
competitors, AJL may lose market share with consequent adverse effects upon its operating and financial performance. In addition, consolidation within
the industries in which AJL operates is possible, which may adversely affect AJL’s competitive position.
2.16 Reputation
The reputation of AJL may be adversely affected in a number of circumstances, including major breaches of workplace safety, litigation or accidents. Where
such circumstances occur and become known in its markets, there is a risk that AJL’s reputation as a reliable and safe provider may be damaged. In
addition, as with any listed company, AJL’s share price may be affected by market sentiment.
31