The financial statements have been prepared on the going concern basis. The directors have considered the company’s current financial position, forecast cash flows, and the support available from its owner.
The owner has confirmed their intention to continue to provide financial support to the company for at least twelve months from the date of approval of these financial statements. This support will ensure that the company can meet its liabilities as they fall due.
The company has prepared forecasts and projections which indicate that it will return to profitability in the foreseeable future. Based on this, and the committed financial backing, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.