The Board acknowledges that it is responsible for the Group’s system of internal control and for reviewing its effectiveness, in order to safeguard shareholders’ investments and the Group’s assets. It should be noted that such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide reasonable, but not absolute, assurance against material misstatement or loss.

As recommended by the Combined Code and the Turnbull Guidance on internal control, there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Group. The key features of the Group’s internal control system are as follows:

• identifying major business risks faced by the Group and developing appropriate policies to manage these risks;
• ensuring the existence of an organisation and business structure with defined lines of responsibility and delegated authorities within which the Group’s activities are planned, monitored and reported; and 
• monitoring and reviewing financial and operating performance on a regular basis using annual budgets, forecasts and timely monthly reporting and review.