annington annual rep 2019-web - Page 34



Strategic report | Going concern
Outlook
GOING CONCERN
OUTLOOK
The Company’s and the Group’s business activities, together with the factors likely to affect its future development, performance
and position are set out in the Business review, Financial review, Financial performance and this section. Full details of post
balance sheet events are set out in Note 32 to the Consolidated Financial Statements.
Clearly, the main focus in the year ahead
will be on progressing the Site Review
negotiations under the terms of the
Arbitration Agreement. This commenced
with the first site inspections on 2
April 2019, with inspections running
through into July. The legal and
arbitral phases will follow, with key
elements commencing from September.
Significant resources are already
deployed, with Annington appointing
several external advisors to prepare and
assist with this process over the next
two years. In addition to all this, 2019
is a Rent Review year and that will be
taking place in parallel with the larger
Site Review process and is in itself an
important piece of work.
Critical to the Group’s future as a going concern is the ability to service and repay its debt. For the foreseeable future, at least until
the maturity of the term loan in 2022, the Group only needs to pay the interest on the debt. The debt has a number of covenants
to comply with under both the bonds and loan facility. The covenants attaching to the debt are:
Covenant
Limitation on Debt
Limitation on Secured Debt
Test
Limit for Bonds
Limit for Loans
Total debt / Total assets

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