UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 118
INDEPENDENT AUDITOR’S REPORT
to the Members of Kingspan Group plc
Opinion
Basis for opinion
We have audited European Single
Electronic Format financial statements
(‘the financial statements’) of Kingspan
Group plc (‘the Company’) and its
subsidiaries (together ‘the Group’)
for the year ended 31 December 2021,
which comprise the Consolidated
Income Statement, the Consolidated
Statement of Comprehensive Income,
the Consolidated Statement of Financial
Position, the Consolidated Statement
of Changes in Equity, the Consolidated
Statement of Cash Flows, the Company
Statement of Financial Position, the
Company Statement of Changes in Equity,
the Company Statement of Cash Flows
and notes to the financial statements,
including the summary of significant
accounting policies set out in Note 1.
The financial reporting framework that
has been applied in their preparation
is Irish law and International Financial
Reporting Standards (IFRS) as adopted by
the European Union and, as regards the
Company financial statements, as applied
in accordance with the provisions of the
Companies Act 2014.
We conducted our audit in accordance
with International Standards on Auditing
(Ireland) (ISAs (Ireland)) and applicable
law. Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the Audit of
the Financial Statements section of our
report. We are independent of the Group
and Company in accordance with ethical
requirements that are relevant to our audit
of financial statements in Ireland, including
the Ethical Standard as applied to public
interest entities issued by the Irish Auditing
and Accounting Supervisory Authority
(IAASA), and we have fulfilled our other
ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we
have obtained is sufficient and appropriate
to provide a basis for our opinion.
In our opinion:
g the Group financial statements give
a true and fair view of the assets,
liabilities and financial position of the
Group as at 31 December 2021 and of
its profit for the year then ended;
g the Company Statement of Financial
Position gives a true and fair view of
the assets, liabilities and financial
position of the Company as at 31
December 2021;
g the Group financial statements have
been properly prepared in accordance
with IFRS as adopted by the
European Union;
g the Company financial statements
have been properly prepared in
accordance with IFRS as adopted
by the European Union as applied in
accordance with the provisions of the
Companies Act 2014; and
g the Group financial statements and
the Company financial statements
have been properly prepared in
accordance with the requirements
of the Companies Act 2014 and,
as regards the Group financial
statements, Article 4 of the
IAS Regulation.
114 - 115
Conclusions relating
to going concern
In auditing the financial statements, we
have concluded that the directors’ use
of the going concern basis of accounting
in the preparation of the financial
statements is appropriate. Our evaluation
of the directors’ assessment of the
Group and Company’s ability to continue
to adopt the going concern basis of
accounting included:
g We confirmed our understanding
of management’s Going Concern
assessment process and also engaged
with management early to ensure
all key factors were considered in
their assessment;
g We obtained management’s going
concern assessment, including
the cash forecasts and covenant
calculations for the going concern
period which covers a period of at
least 12 months from the date the
financial statements are authorised
for issue;
g We considered the appropriateness
of the methods used to calculate
the cash forecasts and covenant
calculations and determined through
inspection and testing of the
methodology and calculations that the
methods utilised were appropriately
sophisticated to be able to make an
assessment for the entity;
g We considered the mitigating factors
included in the cash forecasts and
covenant calculations that are
within the control of the Group. This
included our review of the Group’s
non-operating cash outflows and
evaluating the Group’s ability to
control these outflows as mitigating
actions if required. We also verified
credit facilities available to the Group;
g We have performed reverse stress
testing in order to identify what
factors would lead to the Group
utilising all liquidity or breaching the
financial covenant during the going
concern period; and
g We reviewed the Group’s going
concern disclosures included in the
annual report in order to assess that
the disclosures were appropriate
and in conformity with the
reporting standards.
We have observed that the impact of
the pandemic has not had a detrimental
impact on the Group which has seen an
increase in trading profit in all of its five
divisions during 2021. The Group continued
to generate significant operating cash
flows of €333 million in 2021. The Group
is not expected to be significantly
impacted by Covid-19 in the going concern
assessment period. Further, the Group
has access to significant liquidity. The
majority of the Group’s long-term funding
commitments (79% or €1.1 billion) matures
after February 2025. At 31 December 2021,
the Group has unrestricted cash and cash
equivalents of €0.64 billion and unused
committed debt facilities of up to €0.7
billion from a revolving bank credit facility
expiring in May 2026.
