New Image Annual Report 2012 concept.indd - NZX

Notes to and forming part of the financial
statements (continued)
For the year ended 30 June 2012
D Interest Rate Risk
Interest rate risk is the risk that the value of the Group’s assets and liabilities will fluctuate due to
changes in market interest rates. The Group is exposed to interest rate risk primarily through its cash
balances, bank overdraft and loans and borrowings. Interest rates on borrowings ranged from 5.78%
through to 12.25% p.a. (2011: 5.78% through to 12.50% p.a.). The Group manages interest rate risk
through a combination of fixed and variable rate instruments and continually monitoring its expense.
23 Net
Cash Flow from Operating Activities
The following is a reconciliation between the surplus after taxation shown in the Statement of
Comprehensive Income and the net cash flow from operating activities.
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
Group Company
2012 2011
2012 2011 2012 2011
$’000 $’000
$’000 $’000 $’000 $’000
Fixed Rate Instruments
Net Profit/(Loss) after Tax for the Year (6,115) 2,339 (3,420) -
Financial Assets - -
Financial Liabilities (8,678) (9,290)
Variable Rate Instruments
Financial Assets 2,013 7,563
Financial Liabilities (1,626) (1,217)
Add/(Less) Non-cash Items:
Depreciation 1,687 1,305 - -
Amortisation of Intangibles 227 146 - -
Impairment of Intangibles - 197 - -
Impairment of Goodwill 1,200 32 - -
64
Cash Flow Sensitivity Analysis for Variable Rate Instruments
Impairment of Plant - 600 - -
Impairment of Investment in Associate 97 - - -
65
At 30 June, if interest rates had moved, as illustrated in the table below, with all other variables held
constant, post tax profit would have been affected as follows:
Impairment of Investment in Subsidiary - - 3,420 -
Impairment of Advance to Associate 674 - - -
Post Tax Profit
2012 2011
$’000 $’000
Consolidated
+1% (100 Basis points) Increase to Profit 3 44
-0.5% (50 Basis Points) Decrease to Profit (1) (22)
Impairment Loss on Remeasurement of Equity Accounted
Investment (Note 25)
1,820 - - -
Reduction in Acquisition Contingent Consideration (700) - - -
Current Year Cost of Earn out - 50 - -
Gain on Disposal of Subsidiary (525) - - -
Share of Associates Losses 172 753 - -
Movement in Share Based Payments 234 162 - -
There would be no impact on other comprehensive income.
Loss on Disposal of Property, Plant and Equipment - 2 - -
There is no cash flow interest rate risk associated with bank balances where the funds held were not
invested to earn interest.
Foreign Exchange Translation 608 82 - -
Add/(Less) Movement in Working Capital:
E Fair Values
(Increase)/Decrease in Deferred Tax (296) (249) - -
(Increase)/Decrease in Inventories (247) (2,781) - -
Fair Values versus Carrying Amounts
At 30 June 2012, the fair values approximate the carrying amounts for all financial instruments held by
the Group.
(Increase)/Decrease in Trade and Other Receivables 93 (519) - -
Increase/(Decrease) in Trade and Other Payables 1,262 2,927 - -
Increase/(Decrease) in Taxation Provisions 53 (1,279) - -
Net Cash Flows From Operating Activities 244 3,767 - -
NEW IMAGE GROUP ANNUAL REPORT
NEW IMAGE GROUP ANNUAL REPORT