THE UNITE GROUP PLC Annual Report and Accounts 2024 145 4. 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’s and Parent Company’s ability to continue to adopt the going concern basis of accounting included: • Obtaining an understanding of the relevant controls over the going concern process, including the process to formulate the cashflow forecasts as well as the Board approval process; • Assessing the financing facilities available to the Group and Parent Company, including the associated covenants; • Performing risk assessment procedures including a detailed consideration of the entity’s business model, operations and financing; • Assessing the base-case and reasonable worst case as well as evaluating any plans for future mitigating actions. • Assessing the outcome of the reverse stress testing, this includes assessing the likelihood of downside scenarios arising relative to reverse stress tests with reference to the income and cost assumptions; • Testing the arithmetical accuracy of the models used to prepare the Group’s forecast and related scenarios; • Assessing the forecasts and sensitivity in the context of compliance with the covenants associated with borrowings; • Assessing the revenue assumptions, for the outturn of the 2024/25 academic year and the assumptions for the 2025/26 academic year. For the 2025/26 academic year specifically, we assessed the Group’s current forward sales bookings and UCAS application data to forecast occupancy assumptions for reasonableness; • Assessing the cost assumptions within the forecasts, including consideration of previously incurred costs, the impact of cost inflation, and assumptions made relating to expected future costs associated with climate change and fire-safety related legislation; • Assessing the assumptions regarding refinancing within the going concern period; • Assessing the sufficiency of Group’s liquidity and covenant headroom positions with reference to borrowing facility agreements, including the consideration of the availability of undrawn down facilities; and • Assessing the appropriateness of the Group’s disclosure concerning the going concern basis of preparation. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and Parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. 5. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.