Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Working Capital definition

What does Working Capital mean? In legal practice, working capital describes the liquid resources a business needs to fund its general operating requirements, usually calculated as current assets minus current liabilities (net working capital). It is not defined by statute or case law in England & Wales, Scotland, Northern Ireland or Ireland; it is an accounting and commercial concept, typically defined in contracts. Typical components include trade receivables and inventories less trade payables and accruals. Share purchase agreements, loan agreements and facility agreements frequently tailor the definition by including or excluding items such as cash, debt, tax, intercompany balances and exceptional or non‑recurring items. - M&A: purchase...

AIM admission: reporting accountants’ comfort letter on directors’ working capital statement (template)

Published by a LexisNexis Corporate expert

Precedents

[ Printed on the Reporting accountants’ letterhead ]

The Directors [ Insert name and address of issuer ] and [ Insert name and address of nominated adviser ] [ Insert date ]

Dear [ insert text ]

[ Insert name of issuer ] (the Company):

Application for admission to AIM—Working Capital

We refer to the statement below (the Working Capital Statement) to be made by the directors of the Company (the Directors) in the admission document dated [ insert date ] [ (which is also a prospectus) ] (the Admission Document), and to the board minute approved by the Directors confirming a reasonable basis for making the Working Capital Statement:

[ Insert working capital statement to be made by the directors, eg 'In the opinion of the Directors, having made due and careful enquiry, the working capital available to the Company [ and its group ] will be sufficient for its present requirements, that is for at least 12 months from the date of Admission.' ]

We confirm that, in our opinion, the Directors have issued the Working Capital Statement following due and careful enquiry.

Yours [ faithfully OR sincerely ] [ Insert name of reporting accountants ]...

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Web page updated on 22/05/2026

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