Additional Disclosures
Statement on Going Concern
The Directors have prepared the financial statements on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. However, the preparation of the accounts on this basis is subject to material uncertainty.
Factors Leading to Uncertainty
The company currently operates in a highly challenging economic landscape, primarily due to significant national difficulties experienced across the hospitality sector. Furthermore, the Directors acknowledge that the company has been adversely impacted by a poor prior operational reputation, requiring considerable effort to rebuild customer confidence and trading volumes.
Subsequent to the reporting date, the company faced significant short-term cash flow difficulties, evidenced by the inability to meet key liabilities as they fell due, necessitating arrangements to pay both employees and HM Revenue & Customs (HMRC) on deferred installment plans.
Mitigating Actions and Director Assessment
The continued operation of the business is critically dependent on the sustained financial support provided by the Directors, primarily through the funding available via the Directors Loan Account. The Directors have confirmed their intention to continue supporting the business financially for at least twelve months from the date of approval of these financial statements.
Since the reporting period end, the Directors have proactively collaborated with the company’s brewery partner to develop and implement strategies aimed at improving the business's financial position and long-term viability. Although the company remains under pressure and is currently struggling, the Directors believe these measures, coupled with their ongoing financial commitment, will facilitate recovery and are positive about the future trading prospects.
Conclusion
Due to the reliance on ongoing Directors’ funding and the recent difficulties in meeting liabilities, a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern and, therefore, to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern.