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25. BorrowinGs
Non-current:
26 april 2009 27 april 2008
£’000 £’000
Bank and other loans 4,090 13,641
Obligations under finance leases 623 614
Current:
4,713 14,255
Bank overdrafts 442,683 471,471
Bank and other loans 16,216 4,704
Obligations under finance leases - 225
Total borrowings:
458,899 476,400
Bank overdrafts 442,683 471,471
Bank and other loans 20,306 18,345
Obligations under finance leases 623 839
The maturity of the Group’s total borrowings other than bank overdrafts is as follows:
Borrowings are repayable as follows:
463,612 490,655
26 april 2009 27 april 2008
£’000 £’000
Within one year 19,629 8,197
Between one and two years 354 8,576
Between two and five years 613 900
After five years 333 1,511
20,929 19,184
Borrowings — Sterling 2,580 4,665
Borrowings — Other 18,349 14,519
20,929 19,184
Loans are all on commercial variable rates of interest ranging between 0.6% and 1.75% over the base rate of the country within which the borrowing entity resides.
On 25 October 2007, six members of the Group, Sports Direct International plc, SportsDirect.com Retail Limited, Lillywhites Limited, Brands Holdings Limited, Dunlop
Slazenger Group Limited and Smith and Brooks Holdings Limited (the “Borrowers”) entered into a committed working capital facility agreement with The Governor and
Company of the Bank of Scotland (the “Working Capital Facility”). The Working Capital Facility is available to any of the Borrowers and may be drawn to an aggregate
limit of £500 million. It is capable of being utilised by way of cash advances, letters of credit, guarantees, bonds and/or currency borrowings. The Working Capital Facility
is available until 30 April 2011. Each Borrower is required to observe certain covenants, including undertakings relating to delivery of financial statements, and certain
negative covenants, including in relation to creation of security and disposal of assets. The Working Capital Facility is secured by a debenture from each of the Borrowers
and a composite guarantee from each of the non-dormant subsidiaries of SportsDirect.com Retail Limited.
We have previously reported that our strategic stake were held by Kaupthing Singer & Freidlander (KSF) and partly financed by them. On 8 October 2008, KSF went
into administration and we are in dispute with the administrators concerning the ownership of the shares they hold. We now have concluded that, while we continue
to maintain that the shares are ours and should be delivered to us, we may not “control” the shares for accounting purposes. We have therefore treated them in the
accounts as having been derecognised. Doing so has no impact on net assets as the value of the shares (£26,219,000) has been replaced by a reduction in creditors
(£20,298,000 owed to KSF) and the recognition of a £5,921,000 receivable. This derecognition has resulted in the transfer of historic losses, previously recognised in
reserves of £53,156,000 into the income statement.
The Group has a £50m working capital facility with Mike Ashley which can be drawn down on request.
The carrying amounts and fair value of the borrowings are not materially different.
Sports Direct International PLC Annual Report 2009 55