Annual Report 2013 - Mainfreight

25 Share-based Payment Plans (continued)
(c) Summary of Partly Paid Shares Issued (continued)
In July 2011 a total of 1,260,000 redeemable ordinary shares were fully paid by the participants at an average price of $7.24 per share.
Also in July 2011 the Company bought back 705,642 of those shares at an average price of $10.09. Team members holding 550,000
partly paid shares opted to extend the exercise period of this Scheme by three years to dates between 12 June 2014 and 12 July
2014. The incremental fair value of the extension was $206,000.
The following table lists the inputs to the models used for the valuation of the partly paid shares issued in June 2008 and extended
in 2011.
June
2008
Dividend Yield (%) 2.00
Expected Volatility (%) 20.00
Risk-free Interest Rate (%) 3.50
Expected Life of Options (Years) 3.00
Option Exercise Price ($) 7.24
Weighted Average Share Price at Measurement Date ($) 7.24
The volatility of the underlying share is the inferred volatility from Mainfreight’s share price since the issue of the partly paid shares.
The weighted average remaining contractual life is 15 months (2012 27 months).
26 Business Combinations
There were no new acquisitions during the financial year ended 31 March 2013.
27 Fair Value and Interest Rate Risk
(a) Fair Values
All financial assets and liabilities recognised in the balance sheet, whether they are carried at cost or at fair value, are recognised at
amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.
(b) Interest Rate Risk
Interest on financial instruments classified as floating have their rates repriced at intervals of less than one year. Fixed rate instruments
are fixed until the maturity of the instrument.
The Group constantly analyses its interest rate risk exposure. Within this analysis consideration is given to potential renewals of existing
positions, alternative financing and the mix of fixed and variable interest rates.
The following sensitivity analysis is based on the interest rate exposures in existence at the balance sheet date.
At 31 March 2013, if interest rates had moved, as illustrated in the table below, with all other variables held constant, post tax profit
(including swap fair value movements) would have been affected as follows:
Post Tax Profit
Higher (Lower)
2013
$000
2012
$000
Group
+ 1.0% (100 Basis Points) (1,661) (1,741)
– 0.5% (50 Basis Points) 830 870
Parent
+ 1.0% (100 Basis Points) (843) (806)
– 0.5% (50 Basis Points) 421 403
110 Mainfreight | Annual Report 2013