RMS25 Jun 2019 18:56
I've always liked this company and I noticed the drop today wondered why.
Hmm I found why:
Going concern
The Financial Statements have been prepared assuming the Group and Company will continue as a going concern. As at 31 May 2019, the group had cash and cash equivalents totalling £48,360.
The operational requirements of the Group comprise of maintaining a Head Office in the UK alongside its UK operations. The Directors have reviewed the Group's working capital forecasts, as stated in the Strategic Report, Geocurve is expected to be self-funding in 2019. In line with the agreed plan and budget, GyroMetric requires additional investment to achieve sales growth.
At the date of this report the Group had net cash of approximately £25,000 and therefore the Directors intend to seek to raise additional funding in the immediate future. The ability of the Company to raise additional funds is dependent upon investor appetite and, if necessary, the Directors' ability to obtain alternative sources of funding.
The Directors have a reasonable expectation that the Company will be able to raise sufficient funding to allow it to cover its working capital for a period of twelve months from the date of approval of the financial statements. It is for this reason they continue to adopt the going concern basis of accounting in preparing the financial statements Note 2(b). The Auditors make reference to going concern by way of a material uncertainty within the financial statements.