The financial statements have been prepared on a going concem basis. The Director is of the opinion that the Company will be able to meet its obligations to creditors as they fall due for a period of at least 12 months from the date of approval of these financial statements.However, there exists material uncertainty.
The Company recorded a loss for the year of £143,976 (loss for the year 2022 of £228,351). At 31 December 2023, it had net liabilities of £1,925,601 (FY 2022 £1,781,625) and net current liabilities of £3,175,601 (FY 2022- £3,031,625).
The original cost of the Company's investment property amounted to £2,196,000. This is now entirely financed by related parties.
The Directors of Lycatel Services Limited and Lycamoney Limited have confirmed that they are willing to not ask for repayment of current liabilities for the going concem assessment period and not until at least such time the Company has sufficient cash reserves in place.
The Company is wholly reliant on financial support from a related party who have confirmed their intention to support the Company to ensure they are able to settle their obligations as they fall due for a period of at least 12 months from the approval of these financial statements.However, this financial support is not legaly binding on the related parties.
The ability of these related parties to provide the required support, as set out above, give rise to a material uncertainty relating to going concemn.
These financial statements do not include any adjustments that would be necessary should the going concern assumption not apply.