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The auditor warns of “material uncertainty” that raises “significant doubts” about the group’s continuity

The auditor warns of “material uncertainty” that raises “significant doubts” about the group’s continuity

EY therefore focuses on the fact that equity capital is negative and current liabilities are still “€176 million higher than current assets”. A note that can be read in the presentation of the combined accounts for the first half of the current season.

EY, Porto Sade's auditor, has warned that the capital of the company that manages the Blues and Whites' football team raises “significant doubts” about the group's “ability to maintain continuity.”

At the end of the document sent by SAD to the CMVM, in which the consolidated accounts for the first half of the current season are presented, the auditor adds a note entitled “Material uncertainty related to going concern”, although the consolidated net result is positive at 35 million euros.

EY therefore focuses on the fact that equity capital is negative and current liabilities are still “€176 million higher than current assets”. For the auditor, “these circumstances indicate the existence of a material uncertainty that may raise significant doubt about the Group's ability to continue as a going concern.

“The financial statements have been prepared on the assumption of continuity of operations, with the expectation that financial support from financial institutions and other funding entities will be maintained,” EY explains. The auditor highlights the need to continue providing this financial support “by renewing and/or enhancing existing lines of credit, as well as for future success.”
Operations involving the sale of sports registration rights to players, as provided for in Operating and
The treasury, which is necessary to achieve the economic and financial balance of the group and to fulfill its obligations
Financial and regulatory obligations.

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On February 20, FC Porto Sade informed CMVM that it had achieved a positive net result of 35 million euros in the first half of 2023/24, against a loss of 9.9 million in the same period of 2022/23 and the immediate priority of the management is now reducing liabilities, he revealed, in a presentation. Balance Sheet, Finance Director, Fernando Gomez, former Minister and former Mayor.

Another priority for SAD is to achieve a positive stock position, which, he says, is guaranteed for the second quarter. In the accounts sent to the CMVM, equity remains negative, but “at just nine million euros at 31 December 2023, compared to negative 176 million euros at the end of June” the previous one, at the end of the first half of the year. year. Fernando Gomez emphasized that at the end of the first half of the year, capital will move to the positive side.