7817 Annual Report 2009.qxd - Shire

Shire plc Annual Report and Accounts 2009 131Liquidity, cash flow and going concernThe Company and the Group’s business activities, together with the factors likely to affect its future development, performance and position are setout in the Chairman’s review, Chief Executive Officer’s review and Financial review on pages 2 to 31 of the Shire Annual Report. The financial positionof the Company and the Group, its cash flows, liquidity position and borrowing facilities are described in the Liquidity and capital resources sectionof the Financial review of the Shire Annual Report. The Financial review also includes information in respect of the Group’s objectives, policies andprocesses for managing capital; its financial risk management objectives; details of its hedging activity; and its exposures to credit risk and liquidity risk.Details of the Company’s financial instruments are disclosed in Note N of these financial statements.The Group’s balance sheet includes $498.9 million of cash and cash equivalents at December 31, 2009. The Group has no debt maturing in the nexttwo years and substantially all of the Group’s debt relates to its $1,100 million 2.75% convertible bond which matures in 2014, although these bondsinclude a put option which could require repayment of the bonds in 2012. In addition, the Group has a committed facility until 2012 of $1,200 million,which is currently undrawn. The current financial situation affecting the banking system and financial markets, together with the current uncertaintyin global economic conditions, has resulted in tighter credit markets and a lower level of liquidity in many financial markets. As a result, the Groupmay not be able to access new equity or debt finance at the same level or cost as it has done previously.The Directors have a reasonable expectation that the Company has adequate resources to manage its business risks successfully despite the currentuncertain economic climate, and to continue in operational existence for the foreseeable future. Accordingly the Directors continue to adopt the goingconcern basis in preparing the report and financial statements.The Directors who served during the year and up to the date of signing these financial statements are shown below:MW EmmensAC RussellGC HetheringtonDJ KapplerPJM LangloisJM LeidenKA NealonDM Stout (appointed October 31, 2009)D Mott (resigned October 30, 2009)M Rosenblatt (resigned December 23, 2009)BJ Price (resigned January 24, 2010)AuditorsEach of the persons who is a Director at the date of approval of this report confirms that:— so far as the Director is aware, there is no relevant audit information of which the Company’s auditors are unaware; and— the Director has taken all the steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information and to establishthat the Company’s auditors are aware of that information.Deloitte LLP have expressed their willingness to continue in office as auditors and a resolution to reappoint them will be proposed at the forthcoming AnnualGeneral Meeting.Approved by the Board of Directors and signed on its behalf by:Tatjana MayCompany SecretaryFebruary 26, 2010