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 the recognised code, its annual reporting has previously detailed how the company has followed the UK Corporate Governance Code and where is has departed from the code explained why.

In March 2018, the London Stock Exchange published the 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 reason for doing so. Having reviewed the two recognised codes, the Board has since applied the Quoted Companies Alliance’s Corporate Governance 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 Director’s believe this to be in the best interested of the Company. I am pleased to report that much of this information is already available on our website or in our 2020 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 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
30 October 2020

QCA Code Principle

Reporting Location.

With reference to the Annual Report for the year ended 31 July 2020.

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 13 and our strategic objectives and achievements in the year are set out on page 13. The principle risks associated with the Business Model are set out in the Principal Risks and Uncertainties section on page 27.

2 Seek to understand and meet shareholder needs and expectations

Under Shareholder Relations on page 41 we discuss how we seek to understand and meet shareholder needs and expectations. Andrew Jacobs, 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 30 – 33.

4 Embed effective risk management, considering both opportunities and threats, throughout the organisation
Our approach to risk management is detailed on page 27 and our principal risks are outlined on pages 28 and 29. Our approach to Internal control and specifically internal audit is set out on page 38.

Maintain the board as a well-functioning, balanced team led by the chairThe Board structure is reported on pages 34 – 35. 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 Directors’ biographies can be found on pages 34 and 35 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 30 to 33.

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 38.

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 41.

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 five non-executive directors. The Board considers all of the non-executive directors to be independent of the Group. Andrew Jacobs is Executive Chairman of the Board.

The Board 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 five times a year to discuss a whole range of significant matters including strategic decisions, major acquisitions, risk management and Group performance. The Board receives detailed management accounts with reporting against budgets, minutes of all sub-committees, Risk Register and Conflicts Register.

A procedure to enable directors to take independent professional advice if required has been agreed with 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.