Annual Report & Accounts 2013 - Pinewood Studios

Pinewood Shepperton plc 21Annual Report & Accounts 2013Directors’ report continuedGoing concernThe Group’s business activities, together with the key business risks that may impact its future development, performanceand position, are within the following sections: Operating review, Financial review, Key business risks, Corporategovernance and Corporate responsibility, which form part of the Business review within the Directors’ report. The reviewcovers the financial position of the Group and its cash flows, liquidity position and borrowing facilities on pages 11 to 15.In addition, Notes 23 and 29 to the financial statements include the Group’s objectives, policies and processes formanaging 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 has primary banking facilities and an overdraft facility in place until November 2016. The overdraft is subject toan annual review. In addition, the Shepperton Studios Property Partnership joint venture partnership with Aviva has anon-recourse facility in place until 2026. Although the Group is in a net current liability position of £12.8m, the Group has£32.5m of undrawn committed loan facilities in place which the Directors are confident provides sufficient headroom tosupport continued trading.The Group also has a strong brand and reputation in the marketplace, with a wide number of customers and suppliersin the film and television industry. As a consequence, the Directors believe that the Group is well placed to manage itsbusiness risks and operations successfully, despite the current economic environment.The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existencefor the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financialstatements, as there are no material uncertainties related to events or conditions that may cast significant doubt on theability of the Group to continue as a going concern. The going concern assessment has been prepared in accordance with‘Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009’, published by the Financial ReportingCouncil in 2009.Directors’ statement as to disclosure of information to auditorsThe Directors who were members of the Board at the time of approving the Directors’ report are listed on pages 16and 17.Having made enquiries of fellow Directors and of the Group’s auditors, each of these Directors confirms that:(1) so far as they are aware, there is no relevant information of which the Group’s auditors are unaware; and(2) they have taken all the steps that they ought to have taken as a Director in order to make themselves aware of anyrelevant audit information and to establish that the Group’s auditors are aware of that information.This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the CompaniesAct 2006.Registered auditorsDeloitte LLP is the auditor of the Company. In accordance with Section 489 and Section 492 of the Companies Act 2006,resolutions proposing the reappointment of Deloitte as auditors to the Company, at a level of remuneration to be agreedby the Directors, will be proposed at the Annual General Meeting to be held on 30 September 2013.