Notwithstanding a loss for the period of £88,252 (2019: loss of £152,583) the financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
The immediate parent undertaking has pledged its financial support to the company for a period of at least 12 months from the date of approval of these financial statements.
The Company has entered into a long-term agreement with a private human tissue bank to satisfy its obligations for the storage of stem cells. As per note 7, the Company's financial commitment in this respect is £624,000 (31 December 2019: £696,000). As the company has ceased trading, it is reliant on its immediate parent undertaking to continue to meet its financial obligations under this contract as well as other minor operating expenditure.
Based on these indications, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, these circumstances represent a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.