It is only money from government that keeps Isle of Man Meat Company Ltd running a report to Tynwald will show.

Independent auditors have raised concerns that without the money (nearly £2m) to cover losses, the company, which runs the meat plant, would cease to operate.

The auditor’s report was conducted by accounting firm Crowe for the 2018/19 financial year up to the end of March, and points to the company making an operating loss of £1,992,472.

Crowe said: ’As noted, the company’s operating losses have been met entirely by the subvention granted by the Department for Environment, Food and Agriculture (DEFA), the controlling shareholder of the company.

’If the company were not to receive a subvention each year that covers the working capital and cash requirements of the company, the company would no longer be a going concern.

’The directors are confident that sufficient funding will be provided by DEFA to ensure the company will remain in operational existence for the foreseeable future, however there is an inherent uncertainty as to whether the funding will continue to be provided at the required level and as such whether the company will continue as a going concern.’

The report, due to be received by Tynwald next week, also shows Isle of Man Meat Company Ltd had a turnover of £7,684,000 but costs of £8,399,663 led to a gross loss of £715,663. With administration costs of £1,276,809, this meant the company made a total loss of £1,992,472 before the subsidy from DEFA which totalled £1,995,529.

A total of £270,089 is accounted for as the amortisation of negative goodwill which allowed the company to record that figure as a profit.