A big clue in the HY? - (b) Going concern basis of accounting...

A big clue in the HY?

- (b) Going concern basis of accounting This interim financial report has been prepared on a going concern basis that contemplates the realisation of assets and the settlement of liabilities in the normal course of business. For the half-year ended 31 December 2016, the Group incurred a net loss of $1.743 million, operating cash outflows of $2.825 million and had net current assets of $0.856 million. The timing of receiving amounts owing from a key customer has been influenced by the timing of their coal shipments. This customer holds significant debtor balances with the Group and while the Group has historically been able to recover the amounts in full, there has been a history of delays in receiving payment. The delay in receipt of amounts owing from this customer could result in the Group being unable to pay its debts as and when due and consequently results in a material uncertainty in relation to going concern. The Group continues to actively work with the customer to ensure timely payment of amounts owing and is considering options to extend its current financing facilities and obtain alternative financing if required. In addition, the Directors believe that the future outlook of newly executed contracts will provide future positive cash flows to mitigate the reliance of payments from this key customer. On this basis, the Directors have concluded that the use of the going concern assumption remains appropriate. Given the above, the interim financial report does not include any adjustments related to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern.