Page 25 - Hardide-Annual-Report-2021
P. 25

The Group uses various financial instruments including a finance lease, equity and cash and various items, such as trade receivables and payables that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group’s operations. The existence of these financial instruments exposes the Group to a number of financial risks. Financial risk management is undertaken by the board’s Sustainability & Risk Committee, further details about which appear on page 30.
The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks and having considered the impact of reduced sales scenarios due to the continued disruption caused by the COVID-19 pandemic. The major variables are the depth, duration and timing of recovery from the COVID-19 pandemic. The directors considered the impact of COVID 19 on our key markets and in particular the effect of reduced demand from the oil and gas industry is likely to have on the business for a period of at least 12 months from the date of signing
the Annual Report. Whilst the situation evolves daily, making scenario planning difficult, we have considered various impacts on sales, profitability and cash flows. We are confident that our operations will remain open and will continue to be able to serve our customers.
The Group has considered how the virus may affect various functions of the business; from the supply chain to the ability of our customers to operate. A major disruption would most likely manifest itself in lost volumes and require significant action in relation to operational cost reductions and additional working capital. Overall, we developed plans for several possible out turns, with volumes dropping significantly and for the impact lasting for a substantial part of our 2022 financial year. The revenue and operational leverage impact of such a volume loss would have a major negative impact on the Group, however the scenario modelling would indicate that the Group would have sufficient cash reserves over the foreseeable future. The directors believe that the Group is reasonably placed to manage its financing and other business risks satisfactorily, and have a reasonable expectation that the Group will have adequate resources to continue in operation for at least 12 months from the date of signing of the Group financial statements. Therefore, they consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. In making this assessment, the directors have considered all available information and have not identified any material uncertainties that cast doubt upon the continuing use of the going concern basis.
The directors have assessed the prospects of the Group, and the risks facing it, both as described more fully in the Strategic Report, and in their judgement there is a reasonable expectation that the Group will be able to continue in operation and meet its liabilities in full as they fall due.
At 30 September 2021 the following shareholders had a disclosable interest in 3% or more of the nominal value of Hardide plc’s shares:
Report of the Directors 25
 Canaccord Genuity Wealth Management (Institutional) Andrew Boyce & Associates
Executors of A Badenoch & Associates
Amati Global Investors
P Evershed
Unicorn Asset Management Ltd Executors of W S C Richards
T Simpkin
R J Goddard
14 February 2022
Shareholding %
7,956,299 14.2 6,988,231 12.5 5,600,000 10.0 4,521,963 8.1 3,185,620 5.7 3,179,610 5.7 2,197,652 3.9 2,088,740 3.7

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