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Financial statements
Notes to the Company financial statements
continued
39. Creditors: amounts falling due after more than one year
82 Cosalt plc Annual report & financial statements 2008
Notes to the Company financial statements
2008 2007
£000 £000
Bank loans 26,917 –
Preference shares 50 50
Obligations under finance leases (note 20) 16 –
26,983 50
7.50% Cumulative Preference Shareholders (non-equity interests) have the following rights:
(i) in priority to ordinary Shareholders, to a fixed cumulative preference dividend at a rate of 7.50% per annum;
(ii) on a return of capital on a winding up, will carry the right to repayment of capital together with a sum equal to any arrears
of dividend in priority to the rights of ordinary Shareholders;
(iii) to attend and vote at a general meeting of the Company only in certain limited circumstances where the special rights attaching
to these shares might be varied or their interest affected.
2008 2007
£000 £000
Analysis of gross borrowings
Loans repayable within 5 years:
Unsecured loans
Undated debenture held by a subsidiary undertaking, interest at 12% deferred 557 557
2001/2008 at 1.25% above bank base rate – 466
2008/20011 term loan 11,100 –
11,657 1,023
Total loans 11,657 1,023
Bank overdrafts/revolving credit facility 21,433 6,800
Total gross borrowings
Repayment of gross borrowings
Bank borrowings
33,090 7,823
Between two and five years 26,033 –
Between one and two years 3,500 –
Within one year or on demand 3,000 7,266
Gross bank borrowings 32,533 7,266
Other loans
Between two and five years – –
Between one and two years – –
Within one year or on demand 557 557
Gross other borrowings 557 557
Total gross borrowings 33,090 7,823
Net borrowings
Gross borrowings 33,090 7,823
Cash at bank and in hand – (3,671)
33,090 4,152
40. Derivative financial instruments
Assets Liabilities Net
2008 2007 2008 2007 2008 2007
£000 £000 £000 £000 £000 £000
Forward foreign currency contracts 622 – – – 622 –
Interest rate cap and floor – – 381 – (381) –
622 – 381 – 241 –
The fair value of derivative financial instruments is equal to the carrying value. The fair value of forward foreign current contracts
represents the gain or loss resulting from translation of those contracts at forward rates applicable at the balance sheet date
compared to actual contract rates. The fair value of interest rate cap and floor contracts represent the market value of a comparable
instrument at the balance sheet date.