PEOPLE CIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.ACCOUNTING POLICIES (continued)
During the period ended 31 March 2023 the company made a loss of £45 and as at 31 March 2023 had net liabilities of £134,566. In the period since the Balance Sheet date the company has traded well and are on target to deliver at indicated performance levels. The company continues to be reliant on the ongoing support of its fellow group companies, and in turn its funders and shareholders.
Having regard to the Financial Statements contained herein the Director(s) has considered the financial position of the company and events since Balance Sheet date up to and including the date of the signing of the Financial Statements and the Directors Report. During the period under review Management:
∙Have confirmed and validated all stated Third Party liabilities as at Balance Sheet date with liabilities paid as and when due.
∙Confirm that all Third Party Liabilities are current and approved Debts are paid when due.
∙Confirm that all Trade Debtors have been received.
∙Continue to carefully manage Cashflows and the Working Capital for the Group and all Group companies. The Director's have made an assumption based on their expected profile of trading activity such that they are able to effectively manage working capital and meet creditor obligations as they fall due.
∙Following the CVA that was entered into by People Umbrella Limited in December 2021, the group successfully exited the CVA arrangement in March 2023 having discharged its liability under the CVA in full.
Management have prepared Cashflow forecasts for the period to 26th July 2024, as well as Budgeted Trading and Profit & Loss figures for the same period, which have been prudently prepared including the conservative assumption of zero growth in relation to contractor numbers. These forecasts demonstrate and management have indicated that the Group will retain an ability to successfully manage cash flows and discharge all liabilities when due over the next 12 months. Whilst the Directors do not anticipate any need for further funding, if any funding was required the Directors are confident any requirements for additional funding will be met by the support from the Shareholder and the Group's funders.
In addition to the above People Group Operations Limited, and it’s fellow group companies, have entered into a legally binding agreement whereby each “Group” company agrees to financially support and not withdraw funding to fellow group companies. This confirms support to all group companies such that intercompany balances cannot be withdrawn and funding will be provided to support the going concern basis of accounting of each company, as well as the group as a whole. In addition management have obtained a letter of support from the ultimate controlling party, Terence Hillier, to provide additional appropriate financial support should it be required.
As such the Directors consider it appropriate to prepare the accounts on the going concern basis.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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