2012 annual report - TLA Worldwide

32 TLA Worldwide PLCThe directors have reviewed forecasts for the years ending 31 December 2013 and 31December 2014. The directors consider the forecasts to be prudent and have assessed theimpact on the Group’s cash flow, facilities and headroom within its banking covenants.Relationship with shareholdersThe Board recognises the importance of effective communications with the Company’s shareholdersto ensure that its strategy and performance is understood and that it remains accountableto shareholders. The Company communicates to investors through Interim Statements,audited Annual Reports, press releases and the Company’s website (www.tlaww-plc.com).Shareholders are welcome to the Company’s AGM (notice of which is provided with this report)where they will have the opportunity to meet the board. The Company obtains feedbackthrough its brokers on the views of institutional investors on a non-attributed and attributedbasis and any concerns of major shareholders would be communicated to the Board.Internal controlThe Board acknowledges its responsibility for establishing and maintaining the Group’sinternal control and will continue to ensure that management keeps these processes underregular review and improves them where appropriate.Management structureThere is clearly defined organisational structure throughout the Group with established linesof reporting and delegation of authority based on job responsibilities and experience.Financial reportingMonthly management accounts provide relevant, reliable, up-to-date financial and nonfinancialinformation to management and the Board. Annual plans, forecast and performancetargets allow management to monitor the key business and financial activities and theprogress towards achieving objectives. The Board approves the annual budget.Monitoring of controlsThe Audit Committee receives reports from the auditor and assures itself that the internalcontrol environment of the Group is operating effectively. There are formal policies and proceduresin place to ensure the integrity and accuracy of the accounting records and to safeguardthe Group’s assets. Significant capital projects and acquisitions and disposals require Boardapproval.Going concernThe directors have reviewed forecasts for the years ending 31 December 2013 and31 December 2014. The directors consider the forecasts to be prudent and have assessedthe impact on the Group’s cash flow, facilities and headroom within its banking covenants.Further, the directors have assessed the future funding requirements of the Group, includingthe payment of future earn-outs, and compared the level of borrowing facilities, as set out innote 28. Based on this work, the directors are satisfied that Group has adequate resources tocontinue in operational existence for the foreseeable future. For this reason they continue toadopt the going concern basis in preparing the financial statements.