INTERNAL CONTROL AND RISK MANAGEMENT

The Board is responsible for the Group's systems of internal control and risk management and for reviewing the effectiveness of those systems. Such systems are designed to manage, rather than eliminate the risk of failure to achieve business objectives. Any system can provide only reasonable and not absolute assurance against material misstatement or loss.

The following controls have continued in place throughout the year:

• defined organisational structure with appropriate delegation of authority
• formal meetings of the Board three times a year, plus ad hoc meetings as necessary 
• regular Audit, Remuneration and Nomination Committee meetings
• clear responsibilities on the part of financial management for the maintenance of financial controls and the production and review of detailed, accurate and timely financial management information
• authorisation levels and proper segregation of accounting duties
• a comprehensive financial review cycle, which includes an annual budget approved by the main board; detailed monthly variances against budget at subsidiary level with, where necessary, remedial action. Annual performance is reforecast monthly; and
• provision to the Board of relevant, accurate and timely management information.

A 'Manual of Operations and Procedures' has been issued to all employees. The manual provides management and employees with a framework of rules, controls and processes to enable the Group to operate efficiently, legally and effectively within its marketplace.

The internal control environment will continue to be monitored and reviewed by the Board and, where necessary, it will ensure improvements are implemented.