Four seasons healthcare group is at risk of sale of part of its operation to service a long-term debt that it has. According to the auditors of Four Seasons Healthcare Group, the going concern status of the company is in jeopardy due to a group debt of 790 million. Although they acknowledge the uncertainty of refinancing that they are in talks with the creditors, they did not disclose the outcome in case the refinancing failed, which will jeopardize the operation.
The directors acknowledge how challenging the year has been for the company, but the company has made numerous efforts towards delivery of quality care for their service users. The directors report a rise in revenues for the company, which shows improved performance despite declining occupancy in the industry. This has been driven by the focus of the company on quality delivery, which is attributed to loyal employees and strong partnerships with other players in the industry.
There are some issues concerning the remuneration of directors that have not been dealt with adequately. The financial statements of the parent company have not been prepared in accordance with the accounting standards as claimed by the directors.