RE: GOOD INTERIM FINANCIAL RESULTS12 Jun 2020 17:53
The Group therefore does not currently have committed facilities for the next 12 months and would not have sufficient resources to repay the facilities on their maturity date.
The Group has a profitable and highly cash generative trading history through its principal trading business, Smiths News. Whilst COVID-19 has inevitably impacted the business of Smiths News, it remains cash generative and the Directors, having considered realistically possible outcomes, anticipate that the Group will be able to secure the refinancing and at an adequate level to support the debt requirements of the Group.
Whilst the Group anticipates completing the refinancing over the coming months following the disposal of Tuffnells (which represented a financial drag on the Group), there is, however, a risk that the Group may not be able to refinance. This indicates that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business.
After consideration of the above the Directors have prepared the condensed interim financial statements on a going concern basis. The condensed interim financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern.
They also say at the bottom of the interim results that they can't pay there debts unless they re finance