SIMRIS GROUP PUBLISHES ITS ANNUAL REPORT FOR 2022
Simris Group AB has published its annual report for the 2022 financial year.
The annual report for 2022 is available to download on the company's website https://simrisgroup.com/financial-information/financial-reports/.
Excerpt from the auditor's report regarding significant uncertainty factor regarding the assumption of continued operation
We would like to draw attention to the information provided on pages 12, 13 and 15 of the annual report and consolidated accounts, from which it appears that the company reported a loss of 24,422 kSEK for the year ending 31 December 2022, that the cash flow after investment activities is negative by 40,570 kSEK for 2022 and that amounts in cash and bank amount to 3,994 kSEK as of 31 December 2022. These conditions, together with other circumstances, indicate as mentioned in the sections Liquidity risk and Future prospects respectively in the management report on pages 10–11 that there are significant uncertainty factors that could lead to significant doubts about the company’s ability to continue operations. We have not modified our statement because of this.
The Chairman's comment
The auditor's statement on working capital is based on the Simris Group being a growth company and by that fact it is, and has been, primarily financed via external capital and not profitable revenue. At this time, in line with all forecasts, the business has insufficient funding to cover the capital requirement to the end of the business year 2023. Whilst this imposes an uncertainty factor regarding the company’s ability to continue operating, the Board has known of this scenario for some time and thus this is not a surprise. Further, as I have provided a funding facility of up to €1.5m to the company, it should be clear that I would not have done so if I had major concerns about the company's financial outlook. The future of the business, as it transitions from being a growth company to being one with meaningful and profitable revenue, depends on sufficient capital being secured to meet its objectives. Whilst there is always a risk that any company may not be able to obtain their necessary financing (at least on agreeable terms), the SIMRIS Board is confident that it will continue to secure financing, as and when needed, to meet its strategic objectives for the Company.