1.2 Going concern
These financial statements are prepared on the going concern basis. Since purchasing the shares from the former controlling party, the director has repaid the historical HMRC debt which was previously the subject of a winding up order. In a club statement, the director has said that the remaining debts will be eradicated in due course and he’ll be looking to put the football club on a sustainable model as quickly as possible.
THE ERADICATION OF THE DEBTS WILL INVOLVE SIGNIFICANT INVESTMENT IN THE COMPANY AS EQUITY OR LOANS. DETAILED PLANS ARE IN THE PROCESS OF BEING DRAWN UP but in the meantime the going concern basis is dependent upon the continuing support of the director.
However, based on the accumulated losses to date and the quantity of historic debt, there remains a material uncertainty as to whether all liabilities will be met as they fall due for at least 12 months from the signing of these accounts.
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The eradication of debt will involve taking out more loans, which donut came up with that cracker? LOANS ARE DEBT. Never mind the fact that Hilton categorically stated that he would not be financing the club with loans.
