Funding29 Jul 2025 10:44
Going concern
The Directors consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Cash and cash equivalents increased by £0.8 million in 2024 to £6.2 million. The Group regularly monitors its cash, funding
and liquidity position. Near term cash projections are revised and underlying assumptions reviewed. Longer-term projections
are also updated regularly. Reabold has no borrowings, and its capital commitments can be funded from existing cash
resources. In assessing the appropriateness of the going concern assumption, management have stress-tested Reabold’s
most recent financial projections to incorporate a range of potential future outcomes by considering Reabold’s principal risks
and cash preservation measures, including reduced future capital expenditure. This assessment confirmed that Reabold has
adequate cash to enable it to meet its obligations as they fall due in order to continue its operations for at least 12 months
from the date of approval of the financial statements, even if the Group does not monetise any assets and no further funding is
obtained.
Beyond the going concern period of assessment, the Group may exhaust its available cash resources within 18 months if
additional funding is not secured. Funding could take the form of farmouts, asset sales or external funding at the subsidiary
level. Under an extreme downside scenario – including the failure to secure funding, along with the additional costs incurred
in connection with fundraising activities, the Group may exhaust its cash resources within 14 months of the signing of these
financial statements. While this scenario is considered remote and not part of the base case forecast, it represents a material
uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern beyond the 12-month
period of assessment. As a result, while the directors continue to adopt the going concern basis in preparing the financial
statements, they acknowledge there is no guarantee that the Group will raise the necessary funding required to realise its
assets and discharge its liabilities in the normal course of business and therefore there exists a material uncertainty concerning
the ability of the Group to continue as a going concern. The directors are actively pursuing funding options and, whilst
discussions are at an early stage, the directors are confident in the Group’s ability to secure the additional funding necessary to
progress its strategy and realise the value of its assets.
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