The directors are responsible for the Group’s system of internal control and for reviewing its effectiveness. However, such a system can provide only reasonable, but not absolute, assurance against material misstatement or loss.
The directors recognise that the Group is ambitious and seeking significant growth. There is an on-going process in place to review regularly the control systems across the Group to ensure that they develop in anticipation of this growth. Twice a year, prior to the announcement of the Group’s interim and preliminary financial results, the Finance Director presents to the Board for discussion and approval a summary of the key internal controls in place during the prior period and proposals for enhancements to these controls in the forthcoming period. Based on this process, the directors believe that the Group has internal control systems in place appropriate to its size and nature.
The Board also has in place a formal ongoing process for identifying, evaluating and managing the significant risks faced by the Group, which complies with the guidance provided by the document: Internal Control: Guidance for Directors on the Combined Code.
The Company does not maintain an internal audit function. The directors do not believe such a function is justified in terms of the scale of the Group or the costs involved.