Accountability and Audit

Accountability and Audit
The board is responsible for the Group's system of internal controls and for reviewing its effectiveness. The board regularly reviews the major areas of risk that the Group faces in its operations and the management controls and processes that are in place to manage them. Such systems are designed to manage rather than eliminate the risk of failure and do not provide absolute assurance against misstatement or loss. The board reviewed the operation and effectiveness of the material internal controls during the financial year and has taken any necessary action to remedy any significant weaknesses or findings identified. The controls have remained in place throughout the period under review and up to the date of the approval of the Annual Report and Financial Statements.

Going Concern
In accordance with the Financial Reporting Council's Guidance on Going Concern and Liquidity published in 2009, the requirements of the UK Corporate Governance Code and Listing Rule 9.8.6R (3), the directors have conducted a rigorous and proportionate assessment of the Group's ability to continue in existence for the foreseeable future. This has been reviewed during the financial year, taking into account the successful refinancing of the Group's core revolving credit facility in May, and the directors have concluded that there are no material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern. Furthermore, the Group has adequate resources and visibility as to its future workload, as explained in the Annual Report 2011. It is therefore justified in using the going concern basis in preparing these financial statements.

Statement of directors' responsibilities
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the Group's financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, and the parent company financial statements and the Directors' Remuneration Report in accordance with applicable law and International Financial Reporting Standards, as adopted by the European Union and as applied in accordance with the Companies Act 2006. The Group and parent company financial statements are required by law to give a true and fair view of the state of affairs of the Group and parent company and of the profit or loss of the Group for that period.

In preparing those financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state that the Group financial statements comply with International Financial Reporting Standards (IFRS) as adopted by the European Union, and with regard to the parent company financial statements that applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Company will continue in business.

The directors confirm that they have complied with the above requirements in preparing the financial statements.

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group and the Company and to enable them to ensure that the Group financial statements comply with both the Companies Act 2006 and Article 4 of the International Accountancy Standards Regulation; and that the parent company financial statements and the Directors' Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the board directors (who are identified on pages 40 and 41 of the Annual Report 2011) confirms that to the best of his and her knowledge:

• the Group financial statements, set out on pages 60 to 98 of the Annual Report 2011, which have been prepared in accordance with International Financial
  Reporting Standards (IFRS) as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Group as taken as a whole; and
• the Business Review contained in pages 6 to 39 on the Annual Report 2011 includes a fair review of the development and performance of the
  business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.

The 2011 Annual Report and Financial Statements satisfy the requirement to prepare an annual financial report under the FSA's Disclosure & Transparency Rules.

For and on behalf of the board
Ian Coull
Chairman
14 September 2011

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