The company’s business activities, together with the factors affecting and likely to affect its performance and financial position, its cash flows, liquidity and borrowings are set out in the Directors’ Report and Chairman’s Statement. At 31 March 2023 the company had cash deposits of £840,036 with total debt of £1,926,665 and an undrawn overdraft facility of £100,000.
During the previous financial reporting period, the company resumed repayments on its principal bank debt and the Coronavirus Business Interruption Loan Scheme (‘CBILS’), on the expiry of agreed repayments holidays. In March 2023, the terms of the existing Medium Term Loan were renegotiated. Interest is now charged at 2.94% over Bank of England base rate, and the term was extended by 5 years, to 2038.
The Directors prepare a detailed budget annually, including financial projections with associated cash flows. The Directors have had regard to reasonably possible trends in trading performance during the current financial year 2023/24, in particular, possible future levels of interest rates and the impact of public transport industrial action on demand for events in central London. In recent months, market demand has returned to pre-pandemic levels as experienced in the prior period of 2018/19. However, there remains considerable uncertainty regarding the level of future demand. The company has considered various downside scenarios, including a future pandemic causing a three-month closure of the Hall, widespread industrial action, and political events that might delay customer bookings.
Mitigating actions would be available to the company should any such an eventuality arise to moderate cash outflows. In addition, the business plan has been shared with and reviewed by the bank including the effects of the potential downside scenario and the associated working capital and headroom that may be needed should circumstances require this. The directors are satisfied based on the business plan and the discussions with the bank following its review, including having regard to the quantum and quality of the bank's security, that it is reasonable to assume that the provision of further financial resources in the form of additional borrowing would be available to the company should this be required.
Accordingly, the Directors have formed the judgement, taking into account the financial resources available, the range of reasonably possible future trading scenarios and potential mitigating actions, including the likely ability of the company to raise and sustain the servicing of an additional bank loan should that be required, that the company has adequate resources to continue to operate for a period of at least 12 months from the date of approval of the financial statements and have therefore adopted the going concern basis in the preparation of the financial statements.