Auditors’ doubts over future of Newport Gwent Dragons
AUDITORS of Newport Gwent Dragons have cast doubt over whether the region can continue as a going concern.
In recent filed accounts for the year to May 2011, auditors Arthur Gait & Company said the region has liabilities of £2.4 million and incurred a net loss of £272,141.
"These conditions... indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern," the accounts read.
The accounts of Dragons Rugby Limited say that the directors considered there were "adequate facilities for the company's requirements" for a period of at least 12 months from the date of signing of the balance sheet.
"However the margin of facilities over requirements is not large and inherently there can be no certainty in relation to these matters."
The accounts show that Dragons Rugby Limited owes £762,207 to its parents company Newport Rugby Football Club Ltd, and owes £1.16 million to sister firm Rodney Parade Ltd.
On both Newport Rugby Football Club and Rodney Parade's accounts, the auditor says: "Dragons Rugby Limited may not... be able to repay this amount to the company".
Dragons Rugby is dependent on continuing financial support from the Welsh Rugby Union, its bankers, directors, "group undertakings" and others, according to the accounts.