Accounting standards require that Directors satisfy themselves that it is reasonable for them to conclude whether it is appropriate to prepare financial statements on the going concern basis. There has been no material uncertainty identified which would cast significant doubt upon the Group's ability to continue using the going concern basis of accounting for the 12 months following the approval of this Annual Report.

In assessing going concern, the Directors take into account the Group's cash flows, solvency and liquidity positions and borrowing facilities. At the period end, the Group had cash and cash equivalents of £150.0 million (2016: £50.9 million), external gross debta (excluding finance leases payable to MHE JVCo) of £283.9 million (2016: £107.0 million) and net current assets of £2.9 million (2016: liabilities of £141.2 million). During the year the Group issued £250 million of senior secured notes with a coupon rate of 4% and renegotiated its revolving credit facility. The £100 million revolving credit facility contains typical financial covenants and runs until June 2022. The facility has not been drawn down to date. The Group forecasts its liquidity requirements, working capital position and the maintenance of sufficient headroom against the financial covenants in its borrowing facilities (see below). The financial position of the Group, including information on cash flow, can be found in Our Financials. In determining whether there are material uncertainties, the Directors consider the Group's business activities, together with factors that are likely to affect its future development and position (see Our Strategy) and the Group's principal risks and the likely effectiveness of any mitigating actions and controls available to the Directors.

Further details of the Group's considerations are provided in the Group's Viability and Going Concern Statement.

See Alternative Performance Measures