TPF finally filed its long-overdue accounts at Companies House this week, revealing the true extent of the effects of the loss of its Sky account and subsequent restructuring costs.

According to its accounts, TPF made a pre-tax profit of £238,000 (2007: £2.2m) on a turnover of £65.7m (2007: £68.9m) for the year ended 30 June 2008, leading to a net loss for the year of £188,000 (2007: £1.2m profit).

The dramatic fall in profitability in the Northampton-based company's 2007/08 financial year was attributed to "substantial restructuring costs" associated with the closures of Wace and NPM.

TPF's net current liabilities at the 30 June 2008 were £1.8m. However, in the 18 months that it took the company to file its accounts, the situation worsened as the loss of the Sky account and subsequent further restructuring costs left it facing net current liabilities of £10.2m (unaudited).

These liabilities include a "significant arrears" owed to HM Revenue & Customs (HMRC), which was rumoured to be more than £1m prior to Christmas and is now understood to be far in excess of that amount.

TPF's ability to continue as a going concern rests on its ability to convince HMRC to accept a payment plan to clear the arrears over the two-year period to 31 December 2011.

In addition, the company will need its bankers to agree to an increase of £3.5m to its current invoice discounting facility and for "certain key suppliers" to agree to an extension in the company's credit terms.

Furthermore, TPF will require the receipt of up to £3m shareholder funding that new owner Thames Valley Capital committed to provide when it acquired a 51% stake in the company last month.

Last but not least, the print management company will need to achieve the trading levels assumed in the "detailed trading and cashflow forecasts" prepared by its directors.

Assuming all five of these conditions are met, the directors believe that the group will be able to meet its liabilities as they fall due for the foreseeable future, meaning that it will be able to continue trading as a going concern.

However, in the notes to the financial statements, TPF said: "There can be no certainty over the outcome of these matters, the successful realisation of all of which is required for the group to meet its liabilities as they fall due."