Annual Report 2016 - Page 45

Annual Report 2016 Payment of suppliers and commercial arrangements The Group’s policy is to pay suppliers in line with the terms of payment agreed with each of them when contracting for their products or services. Group trade creditors at 31 March 2016 represent 53 days of purchases during the year (2015: 59 days). The Group is not reliant on any single commercial arrangement. Going concern The Directors consider each year the appropriateness of the assumption of preparing the financial statements on a going concern basis. This is based upon a review of the Company’s and the Group’s business plan, budget, financial forecasts to 31 March 2019 (and the related sensitivity analysis performed on these forecasts), the investment programme, the forecast compliance with borrowing covenants, the availability of undrawn borrowing facilities and surplus cash to provide liquidity and the Group’s strong track record of renewing or replacing its borrowing facilities when they mature. The Group’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report from pages 4 to 39. The financial performance and position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Financial Review of the Strategic Report on pages 32 to 39. After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts. Additional details in respect of the long-term viability and financial resilience of the Group are provided in the Financial Review section of the Strategic Report on pages 32 to 39. Independent auditor In accordance with the Companies Act 2006, the Directors confirm that, as far as they are aware, there is no relevant audit information of which the Company’s auditor is unaware and that the Board has taken all reasonable steps to make itself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information. A resolution proposing the reappointment of Deloitte LLP as auditor will be put to the Annual General Meeting. By Order of the Board J R Goodwin Company Secretary 22 August 2016 43