Evaluate board performance based on clear and relevant objectives, seeking continuous improvement (QCA Principle 8)

The Company supports the concept of an effective Board leading and controlling the Company. The Chairman discusses and deals with any concerns with an individual Director, or the Board as a whole, or on the Board’s performance, as they arise. During the year a number of discussions have been held in relation to the challenges of revenue forecasting for a new product/service in an emerging market. Procedures have been evaluated but it is recognised that there is inherent uncertainty in the forecasting process that is unavoidable.

The Board undertakes a periodic formal evaluation of its performance, its Directors and its Committees. The review, led by the Chairman, involves each Board member providing feedback and comments on the others and where necessary specific actions are identified to improve certain areas. The new QCA Code 2023 expects board performance to be reviewed annually with greater disclosure on the board performance review process, results and recommendations, any in-year events and on succession planning. A comprehensive review is being planned later in 2025 in light of the new QCA Code 2023 requirements.

The evaluation criteria take into account the Financial Reporting Council’s guidance on board effectiveness. The criteria against which board, committee and individual effectiveness is considered comprise the board structure (composition, constitution, diversity and succession planning – see Principle 6), the dynamics and functioning of the board (annual board meeting schedule, quality of information, interactions and communications with the executive directors and senior management team, cohesiveness and the quality of participation in board meetings), the board’s role in strategy and the financial reporting process. Evaluation procedures are evolving to ensure they are relevant to the Group’s stage of development and Board dynamics. Due to the experience and size of the Board and the size of the Company, the Board does not consider it necessary to have evaluations facilitated by an external consultant but will keep this under review.