Related Party Transactions and Balances
At both the current and prior financial year end the company owed £72,209 to a related company which is included within Creditors: amounts falling due within one year. There was no movement in the period.
Group Company Transactions and Balances
Due from Group Companies (included within Current assets)
Amount outstanding at start of year £13,222
Advances in year (net) £46,580
Bad debt provision - at start of year ( £13,222 )
Bad debt provision - provided for in year ( £39,184 )
Amount outstanding at end of year £ 7,396
Due to Group Companies (included within Creditors: amounts falling due within one year)
Amount outstanding at start of year £9,534
Advances in year (net) £57,590
Amount outstanding at end of year £67,124
Going Concern
The company is currently insolvent by virtue of the bad debt provision arising against one subsidiary company loan, however it is anticipated that another subsidiary which is now well established and trading profitably will be in a position to commence paying dividends in the coming year and ultimately reverse the deficit on reserves in due course. In the meantime, the company continues to benefit from the support of a related company loan which is only repayable as and when funds become available and the directors are content that it remains appropriate to prepare accounts on a going concern basis.