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. The Group applies the Quoted Companies Alliance’s Corporate Governance code (‘QCA Code’).

As Chairman it is my responsibility to ensure the Company complies with the QCA Code and where the company deviates to explain why the Directors believe this to be in the best interests of the Company. In this section, we hope to demonstrate our company’s good corporate governance structure and where our practices differ from the expectations set by the QCA Code, why they do so. You can find more information including our reporting directly referenced to the 10 principles of the QCA code on the corporate governance page in the investor section on our website. These are also summarised below and referenced to the relevant content within the 2021 Annual Report.

The Board will continue to review the Company’s corporate governance and annual reporting against the QCA Code and implement appropriate systems in order to support the Directors in executing their responsibilities to all of the Company’s Stakeholders in maintaining the highest levels of corporate governance.

Andrew Jacobs
Executive Chairman
29 October 2021

QCA Code Principle

Reporting Location: 31 July 2021 Annual Report

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

Our Business Model is set out on pages 14 to 15 and our strategic objectives and achievements in the year are set out on page 16. The principal risks associated with the Business Model are set out in the Principal Risks and Uncertainties section on pages 37 to 39.

2 Seek to understand and meet shareholder needs and expectations
Under Shareholder Relations on page 53, we discuss how we seek to understand and meet shareholder needs and expectations. Andrew Jacobs, Executive Chairman, 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 Sustainability Report on pages 40 to 43.


4 Embed effective risk management, considering both opportunities and threats, throughout the organisation
Our approach to risk management is detailed on page 37 and our principal risks are outlined on pages 38 and 39. Our approach to Internal control and specifically internal audit is set out on page 48.


5
Maintain the board as a well-functioning, balanced team led by the chairThe Board structure is reported on pages 46 to 47. Our committees are detailed in this section of the annual report but can also be found on our website: https://www.loknstore.co.uk/in...


6
Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities
Our Directors’ biographies can be found on pages 46 and 47 and further information on the balance of skills and capabilities within our Board can be found in the commentary on Board Evaluation on Page 52.


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 on page 52.


8
Promote a corporate culture that is based on ethical values and behaviours

Please see our Corporate Sustainability Report on pages 40 to 43.


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 from page 48.



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 53. Results of voting at our AGMs can be found on the announcements page of our website: https://www.loknstore.co.uk/investors/announcements/



The Board

Three Executive Directors and Five Non-Executive Directors

Remuneration Committee

The Remuneration Committee consists of Edward Luker (Chairman of the Committee) and Richard Holmes. The Committee meets once a year and considers, within existing terms of reference, the remuneration policy and makes recommendations to the Board for each Executive Director. Further, the Committee considers proposals from the Chief Executive Officer on the remuneration of the operational management team especially in relation to bonus share option awards under the long-term performance-related pay schemes.

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 long-term performance-related pay including 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 Remuneration Report on page 58 of the 2021 Annual Report and more details are given in note 7 in the financial statements.

Audit Committee

The Company has an Audit Committee, to whom the external auditor, RSM UK Audit LLP, reports. The Committee consists of Charles Peal (Chairman of the Committee) and Edward Luker. Charles Peal is the Committee’s Nominated Financial Expert (for details of Charles’ experience please see his biography here. The Committee is responsible for the relationship with the Group’s external auditor and the review of the Group’s financial reporting and internal controls.

The Committee meets prior to the announcement of the Group’s financial results to consider the Auditors’ Findings Report and consider any corresponding recommendations. It also convenes to discuss and review the findings of the external JLL Valuation Report prior to the Group’s year-end results. The Committee would also convene prior to the Group’s interim financial results and at other times should it be necessary.

The Audit Committee also undertakes a formal assessment of the auditor’s independence each year, which includes:

  • a review of non-audit services provided to the Group and related fees;
  • discussion with the auditor of a written report detailing all relationships with the Company and any other parties that could affect the independence or the perception of independence;
  • a review of the auditor’s own procedures for ensuring the independence of the audit firm and partners and team members involved in the audit, including the regular rotation of the audit partner every five years; and obtaining written confirmation from the auditor that, in their professional judgement, they are independent.