The Company's shares are traded on AIM, a market regulated by the London Stock Exchange and the Company is not therefore required to report on compliance with the Combined Code. However, the Board of directors supports the Combined Code, and also the recommendations of the Quoted Companies Alliance in its bulletin "Guidance for Smaller Quoted Companies".
Accordingly, the Board has established an Audit Committee and a Remuneration Committee, and complies with the Combined Code in areas where it is felt justified by reference to the Quoted Companies Alliance as being relevant to a business of our size.
Internal control
The directors acknowledge their responsibilities for the system of internal control. In fulfilling these responsibilities the Board continues to review the effectiveness of the system of internal control on the basis of the criteria set out in the Guidance for Directors "Internal Control and Financial Reporting".
The Board considers major business and financial risks. The Group operates with an executive committee, comprising the Chief Executive together with the executive directors, which meets regularly and reports to the Board. All strategic decisions are referred to the Board for approval.
Accepting that no system of internal control can provide absolute assurance against material misstatement or loss, the directors believe that the established system of internal control is appropriate to the business. No weaknesses have resulted in any material losses, contingencies or uncertainties which would require disclosure as recommended by the Guidance for Directors.