Q&A - 2017 Annual Results
29 June 2018
Q: Why has it taken so long to get the 2017 Report & Accounts out?
A: 2017 was a difficult year, as is more fully explained in the final statement, in addition to which this was only the second year with new auditors. These factors, in combination with our strong desire to achieve a clean audit report meant that that these statements took longer to produce. Time has been taken with our auditors and our bank to ensure that the audit report was unqualified, which has been successfully achieved. The “emphasis of matter” language you will see in the 2017 accounts does not amount to an audit qualification and merely serves, at the behest of our auditors, to draw your attention to the fact of the obvious importance of cashflow going forward in terms of sustaining the day to day needs of the Group.
In the current environment (post well publicized cases such as Carillion), auditors are taking a more cautious approach to their work to satisfy themselves as to the soundness of any business. As a contracting company, this focus has been emphasized by the auditors during the course of their work this year with Paragon. The “emphasis of matter” language used by the auditors in their report is prescribed by auditing standards, however, we stress that this does not amount to an audit qualification and in no way impacts on their clean audit report or on their view of the Directors’ assessment on going concern.
As the Directors point out in the 2017 annual report, we have the ongoing support of our bank, HSBC, who have recently extended our facilities and we have the largest order book we have ever had with a good spread across UK and international work, and balance between short term and longer term projects.
As ever we remain vigilant as to cashflow and liquidity (the lifeblood of any business) and look forward to the future with more confidence than we ended 2017, and in anticipation of being in a position to announce more about our new business wins in due course.
We thank you for your interest and continued support.