Contingent Liabilities...

Generally speaking, and in the case of the vast majority in NCFC accounts, these aren't included in the financial statements.

The declaration has to be made and CLs can be declared if; (a) they are likely to occur and (b) reasonably able to be estimated.

Since the regulations were tightened many years ago, the ability to include CLs as provisions in the accounts has been massively reduced. You can only provide in the accounts for future known contractual obligations due to a past event (onerous contracts, property works, deferred taxation, etc.).

So, yes, there is 'possibly' a maximum of an additional £69m due in the future (reduced from £72m) but as already stated, the scenarios are unlikely.

If I was major investor, rather than just one of many token shareholders, I wouldn't be overly concerned. A few other things maybe, but not that.

Carrying a high level of debt isn't necessarily a bad thing, it's all about being able to service it within your operating costs.

This has been the midnight accountancy hour, tune in again for more cures for insomnia 😘

Posted By: Worthing Yellow, Nov 10, 00:31:26