Annual Report 2016
Payment of suppliers and
commercial arrangements
The Group’s policy is to pay suppliers
in line with the terms of payment
agreed with each of them when
contracting for their products or
services. Group trade creditors at
31 March 2016 represent 53 days
of purchases during the year (2015:
59 days). The Group is not reliant on
any single commercial arrangement.
Going concern
The Directors consider each
year the appropriateness of the
assumption of preparing the
financial statements on a going
concern basis. This is based upon
a review of the Company’s and
the Group’s business plan, budget,
financial forecasts to 31 March 2019
(and the related sensitivity analysis
performed on these forecasts),
the investment programme, the
forecast compliance with borrowing
covenants, the availability of
undrawn borrowing facilities and
surplus cash to provide liquidity and
the Group’s strong track record of
renewing or replacing its borrowing
facilities when they mature.
The Group’s business activities,
together with the factors likely
to affect its future development,
performance and position, are
set out in the Strategic Report
from pages 4 to 39. The financial
performance and position of the
Group, its cash flows, liquidity
position and borrowing facilities are
described in the Financial Review
of the Strategic Report on pages
32 to 39. After making enquiries,
the Directors have a reasonable
expectation that the Company
and the Group have adequate
resources to continue in operational
existence for the foreseeable future.
Accordingly, they continue to adopt
the going concern basis in preparing
the accounts. Additional details in
respect of the long-term viability
and financial resilience of the Group
are provided in the Financial Review
section of the Strategic Report on
pages 32 to 39.
Independent auditor
In accordance with the Companies
Act 2006, the Directors confirm
that, as far as they are aware, there
is no relevant audit information
of which the Company’s auditor is
unaware and that the Board has
taken all reasonable steps to make
itself aware of any relevant audit
information and to establish that the
Company’s auditor is aware of that
information.
A resolution proposing the
reappointment of Deloitte LLP as
auditor will be put to the Annual
General Meeting.
By Order of the Board
J R Goodwin
Company Secretary
22 August 2016
43