MOREGROVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED APRIL 30, 2021
Moregrove Limited is a private limited company incorporated in England and Wales. The Company's registered office is Chace Court, Thorne, Doncaster, DN8 4BW. The Company's registration number is 04638324. The company has not traded during the year.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are prepared in sterling and rounded to the nearest pound.
The following principal accounting policies have been applied:
The Directors believe that the Company's financial statements should be prepared on a going concern basis and have considered a period of twelve months from the date of approval of these financial statements.
Whilst the Company continues to trade profitably the Group by which it is owned is reliant on the continued support of the Bank, which has a cross corporate charge across all Group entities.
Since March 2020, the outbreak of Covid 19 had a significant effect on the global economy and the Group's performance, leading to a number of breaches of covenant on the Group's bank facilities. The Group also continues to have significant deferred liabilities with HMRC. The Group has continued to trade following the sale of key assets and support from it's Bankers but there's no guarantee this support will continue for the foreseeable future.
After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the Group will show increased profitability going forward which will allow the deferred liabilities to be cleared and allow the Group to continue in operational existence for the foreseeable future. These forecasts however also show the Group has a short term funding requirement that will need to be met by further support from either the Bank, the owners, or new investors.
Subsequent to the year end the shareholders have accepted an offer to sell the majority of the group to new investors, which should allow the bank indebtedness to be cleared and alleviate any concerns over the short term cashflow requirement. Based on this the Directors continue to adopt the going concern basis in preparing the Companies financial statements however acknowledge there is material uncertainty around this relating to factors outside of it's control and in particular if it doesn't receive the support required from it's Bank, HMRC and the new investors.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Short term debtors are measured at the transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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