The directors have prepared these financial statements on the basis that the company is a going concern, despite the fact that, as of the balance sheet date, the only outstanding creditor is the shareholders, with a total balance of £51,091.16. In addition, it should be noted that the company is technically insolvent due to its current financial position.
The directors have carefully considered the company's current financial circumstances and various projections for the foreseeable future. After a thorough assessment of these factors and consultation with the company's professional advisors, the directors have concluded that it is appropriate to continue preparing the financial statements on a going concern basis. This basis of accounting assumes that the company will continue its operations for the foreseeable future and can meet its obligations as they fall due.
The directors highlight the willingness and commitment of the shareholders to provide the necessary financial support to address the company's current liabilities. This support offers substantial assurance that the company's obligations to the shareholders will be met when they fall due.
While these factors provide the directors with confidence in the company's ability to operate as a going concern, it is important to recognize that inherent uncertainties and risks exist. Adverse changes in economic conditions, unforeseen events, or a failure to achieve projected results may impact the company's ability to meet its obligations. The financial statements do not include any adjustments that may arise in the event that the going concern basis becomes inappropriate.
The directors believe that the adoption of the going concern basis remains appropriate and continue to monitor the company's financial performance and cash flow position closely. They remain committed to taking all necessary actions to address the company's current financial challenges and secure its long-term success.