Annual report 2010 - plazacenters

Financial statements
Notes to the consolidated financial statements
continued
Note 35 – Financial instruments continued
The Company’s Board of Directors’ seeks to maintain a balance between the higher returns that might be possible with higher levels
of borrowings and the advantages and security afforded by a sound capital position.
From time to time the Group purchases its own shares on the market; the timing of these purchases depends on market prices. No
purchase is made unless the expected effect will be to increase earnings per share. The purchase of shares by the Company under this
authority would be effected by a purchase in the market. It should not be confused with any share dealing facilities that may be offered
to shareholders by the Company from time to time.
At present employees hold 0% of ordinary shares, but with future potential of about 6.5% assuming that all outstanding employee share
options vest and are exercised at maximum price of 324 pence.
The Company’s Board of Directors was authorized by the general meeting of the shareholders to allot equity securities (including
rights to acquire equity securities) in the Company up to an aggregate nominal value of approximately EUR 978 thousands, being
approximately 33% of the Company’s issued ordinary share capital as at May 25, 2010. Such authorization shall expire on the conclusion
of the Annual General Meeting which will be held in May 2011. There were no changes in the Group’s approach to capital management
during the year.
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting
date was:
For the year ended For the year ended
December 31, December 31,
2010 2009
Note €’000 €’000
Cash and cash equivalents 5 137,801 122,596
Restricted bank deposits 6 29,954 39,202
Derivative and short-term deposits 16 10,535 4,399
Available for sale debt securities 7 27,098 15,040
Trade receivables, net 8 4,064 1,920
Other receivables and prepayments 9 10,525 18,384
Related parties 19 1,185 513
Non-current derivatives 16 42,110 20,151
Long-term deposits and other investments 11 52,559 51,447
Restricted bank deposits 6 15,751 14,737
331,582 288,389
The maximum exposure to credit risk for the above mentioned table at the reporting date by type of debtor was as follows:
For the year ended For the year ended
December 31, December 31,
2010 2009
€’000 €’000
Banks and financial institutions 317,293 268,637
Tenants 4,064 1,920
Governmental institutions 3,323 10,744
Related parties and other 6,902 7,088
331,582 288,389
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Plaza Centers N.V. Annual report 2010