Directors' Report: Corporate Governance

The Financial Reporting Council's UK Corporate Governance Code (the "Code") establishes the principles of good governance for companies; the following report describes how the Company has applied these principles to its activities. The Board remains committed to maintaining high standards of corporate governance and continually strives to do so. In the opinion of the Directors, the Company has complied with the Code throughout the period under review except in respect of the composition of the Audit Committee. On Bryan Morton's resignation in July 2012, Michael Redmond, Chairman of the Board, was appointed to the Audit Committee in order to maintain the required number of members in line with the Audit Committee Terms of Reference. Michael Redmond stood down as a member of the Audit Committee on 21 February 2013 upon the appointment of Julian Heslop and Ishbel Macpherson.