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Corporate Governance Statement

The Board of Lok’nStore Group Plc has always sought to operate the highest level of governance standards appropriate to the size and nature of the Company. Although the company has not been obliged to comply with a recognised code, its annual reporting has previously detailed how the company has followed the UK Corporate Governance Code and where it has departed from the code explained why.

In March 2018, the London Stock Exchange published Aim Notice 50 which requires AIM companies to state which of the recognised corporate governance codes the board of directors has decided to apply, how the company complies with that code and where it departs from the code an explanation of the reasons for doing so. Having reviewed the two recognised codes, the Board has decided to apply the Quoted Companies Alliance’s Corporate Governance code.

As Chairman it is my responsibility to ensure the Company complies with the code and where the company deviates to explain why the Director’s believe this to be in the best interests of the Company. I am pleased to report that much of this information is already available on our website or in our annual report and below you will find links to our reporting relevant to each of the 10 principles of the QCA Code.

The Board will continue to operate at the highest levels of corporate governance and will seek to develop our reporting of these standards to our shareholders and other stakeholders.

Simon G. Thomas
Non-Executive Chairman
19th September 2018

QCA Code Principle

Reporting Location

With reference to the Annual Report for the year ended 31 July 2018

Compliant With Code
1 Establish a strategy and business model which promote long-term value for shareholders

Our Business model is set out on page 11 of our Annual Report and our strategic objectives and our achievements in the year (2018) are set out on the following page 12.

2 Seek to understand and meet shareholder needs and expectations

Under Shareholder Relations on page 39 of our Annual Report we discuss how we seek to understand and meet shareholder needs and expectations.

Andrew Jacobs, CEO, is responsible for shareholder liaison.

3 Take into account wider stakeholder and social responsibilities and their implications for long-term success

How we work with and take into account wider stakeholder interests is detailed in our Corporate Social Responsibility Report on pages 28 – 31 of our Annual Report.

4 Embed effective risk management, considering both opportunities and threats, throughout the organisation

Our approach to risk management is detailed on page 26 and our principal risks are outlines on page 27.

Maintain the board as a well-functioning, balanced team led by the chairThe Board structure is reported on in our Annual Report on pages 34 - 40. Our committees are detailed in this section of the annual report but can also be found on our website

Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities

Our Director’s biographies can be found on pages 34 and 35 of our Annual Report and further information on the balance of skills and capabilities within our Board can be found in the commentary on Board Evaluation on Page 38.

7 Evaluate board performance based on clear and relevant objectives, seeking continuous improvement
We set out this year’s information in the Corporate Governance section of our Annual Report on page 38

Promote a corporate culture that is based on ethical values and behaviours

Please see our Corporate Social Responsibility Report pages 28 to 31

9 Maintain governance structures and processes that are fit for purpose and support good decision-making by the board

Please see the Corporate Governance Section of our Annual Report - from page 36

10 Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders

Please see the Corporate Governance Section specifically page 39

Results of voting at our AGMs can be found on our announcements page.

Board Structure

There is a Board of directors, which is set up to control the Company and consists of three executive and four non-executive directors. The Board considers all of the non-executive directors to be independent of the Group. SG Thomas is Chairman of the Board and it has a formal schedule of matters reserved for its consideration and decision. This schedule includes approval of financial strategy, major investments, review of performance, monitoring risk; ensuring adequate capital resources are available and reporting to shareholders. The full Board meets every three months to discuss a whole range of significant matters including strategic decisions, major acquisitions and Group performance. A procedure to enable directors to take independent professional advice if required has been agreed by the Board and formally confirmed by all directors.

Edward Luker is the senior independent director.

Remuneration Committee

The Remuneration Committee consists of E Luker (Chairman of the Committee) and RJ Holmes. The Committee meets and considers, within existing terms of reference, the remuneration policy and makes recommendations to the Board for each executive director. The Committee’s remuneration policy aims to design a package that will align the interests of executive directors and those of shareholders. The executive directors’ remuneration consists of a package of basic salary, bonuses and share options, which are linked to corporate achievements and these levels are determined by the Remuneration Committee. The details of each director’s remuneration are set out in the Notes to the Financial Statements.

The Committee meets once a year and considers proposals from the Chairman and Chief Executive.

Audit Committee

The Company has an established Audit Committee, to whom the external auditors, RSM UK Group LLP, report. The Committee consists of C Peal (Chairman of the Committee) and E Luker. It is responsible for the relationship with the Group’s external auditors and the review of the Group’s financial reporting and the Group’s internal controls.

The Committee meets a minimum of twice a year, prior to the announcement of interim and annual results and, should it be necessary, would convene at other times.