All8 Jan 2010 14:20
4. Going Concern
During the six month period ended 30 June 2009 the Group incurred a loss of 76,000 (year ended 31 December 2008 loss of 217,000) and at 30 June 2009 had net liabilities of 503,000 (31 December 2008 net liabilities of 427,000).
The Group relies on support from Surrenda-link Limited (a 48.26% shareholder in the Company). The Directors have recently agreed with Surrenda-link Limited that the payment of non-current outstanding charges in the amount of 271,624 will not be paid before 31 December 2010. In addition, the Directors have also recently agreed with Surrenda-link Limited a working capital facility of up to 150,000 which will not be repaid before 31 December 2010.
On the basis of discussions with Surrenda-link Limited the Directors are anticipating improved trading results for the period up to 30 September 2010 and have projected cash flow information which show creditors (excluding amounts owed to Surrenda-link Limited) can be paid out of cash flow. The projected cash flow information assumes that the total amount due to HM Revenue & Customs of 134,960 can be paid over a period of not less than 12 months from January 2010, which has not yet been agreed with HM Revenue & Customs.
On the basis of the above, and all other available information, the Directors consider that the Group will be able to operate within the working capital facility recently agreed with Surrenda-link Limited and therefore that it is appropriate to prepare the interim financial statements on the going concern basis.
These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. The interim financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.
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