The Board has satisfied itself that the Group has adequate resources to continue in operation for the foreseeable future. The Group's financial statements have accordingly been prepared on a going concern basis.

The Group currently has no need to undertake a capital restructuring and key executive management is in place. The Board is not aware of any material non-compliance with statutory or regulatory requirements and there are no pending legal proceedings other than in the normal course of business.

SOLVENCY

The Board determined that the Group is solvent, as at 28 February 2022, with net assets of US$563.4 million (FY21: US$583.2 million) and tangible net assets of US$243.3 million (FY21: US$268.7 million). The Group is expected to remain solvent over the next 12 months.

LIQUIDITY

Financing facilities entered into in recent years, as well as the strong operating cash flow generated during FY22, significantly enhanced the Group's liquidity position.

The Group performed covenant projections to confirm that banking covenants are unlikely to be breached for the next 12 months. Trade receivables and inventory are of a sound quality and adequate provisions have been recorded.

The Group's forecasts and projections of its current and expected financial performance show that the Group is expected to operate within the levels of its banking facilities for at least 12 months from the authorisation date of the annual financial statements.

The Group's projections show that the Group has sufficient capital and liquidity to continue to meet its short-term obligations and as a result, it is appropriate to prepare the results on a going concern basis.