NATS-Annual-Report-2015

Annual Report and Accounts 2015 | NATS Holdings Limited
Strategic Report
21
Financial review
(continued)
The cash from operations helped the group to finance
a higher level of capital investment, to service debt
obligations and pay dividends. The group drew down
£25.0m on its bank facilities in the year (2014: repaid
£9.0m).
Going concern
The group’s business activities, together with the factors
likely to affect its performance and financial position, its
cash flows, liquidity position and borrowings are set out
in the report above. In addition, note 19 to the financial
statements describes the group’s objectives, policies
and processes for managing its capital; its financial risk
management objectives; details of its financial instruments
and hedging activities; and its exposure to credit risk and
liquidity risk.
The group holds adequate levels of cash and as at 31 March
2015 had access to £123.0m of undrawn committed bank
facilities that are available until December 2016. The group’s
forecasts and projections, which reflect its expectations for
RP2 and taking account of reasonably possible changes in
trading performance, show that the group should be able
to operate within the level of its existing facilities for the
foreseeable future. The UK en route business also benefits
from some protections against traffic volume risk afforded
by its price control conditions. Other sources of income are
generated mainly from long term contracts, some of which
were renewed in the year. As a result, the directors believe
that the group is well placed to manage its business risks.
The directors have formed a judgement that taking into
account the financial resources available, the group
has adequate resources to continue to operate for the
foreseeable future and have therefore adopted the going
concern basis in the preparation of the financial statements
for the year ended 31 March 2015.
Nigel Fotherby
Finance Director
Strategic Report