PORT OF TYNE ANNUAL REPORT AND ACCOUNTS 2011

34/ANNUAL REPORT AND ACCOUNTS 2011
NOTES TO THE FINANCIAL STATEMENTS/35
13. CASH AND SHORT TERM DEPOSITS
Group
2011
(£000’s)
14. CREDITORS: AMOUNTS FALLING DUE
within one year
Group
2010
(£000’s)
Authority
2011
(£000’s)
Authority
2010
(£000’s)
Cash at bank and in hand 4,240 44 3,877 7
4,240 44 3,877 7
Group
2011
(£000’s)
Group
2010
(£000’s)
Authority
2011
(£000’s)
Authority
2010
(£000’s)
Bank loans (note 15) 2,485 1,587 2,485 1,586
Obligations under finance leases (note 15) 260 246 155 147
Bank overdraft (note 15) — 1,001 — 935
Trade creditors 1,494 1,464 1,138 725
Taxation and social security 543 707 404 498
Other creditors 749 629 700 554
Accruals and deferred income 9,207 6,151 8,614 5,425
Corporation tax 1,038 871 783 511
Amounts owed to group undertakings — — 3,082 2,973
15,776 12,656 17,361 13,354
In September 2009 the Authority exercised
the option to extend the Dexia loan
drawn down in 2004 for a further 4 years.
A replacement loan of £4,531,000 was
drawn, repayable by quarterly instalments
of £40,000 with a bullet repayment of
£3,931,000 in July 2013. The agreement
is secured on land at Maritime Industrial
Estate, North Shields. Interest is charged
at 4.81%. At 31 December 2011 the amount
drawn on the facility was £4,172,000
(2010 – £4,332,000).
In July 2006 the Authority entered into a
revolving credit facility (RCF) with Barclays
Bank PLC up to the sum of £15,700,000.
The purpose of the facility was to help
finance the large scale development
programme beginning in 2007. Monies
drawn are secured on the Tyne car terminal
up to the amount of the facility utilised.
ANALYSIS OF DEBT
Debt can be analysed as falling due:
In one year or less, or on demand
Between one and two years
Between two and five years
In five years or more
Interest is charged at a rate of LIBOR +
0.5625%. The LIBOR element of the rate
is hedged using an interest rate swap at
3.96%, based on the projected nominal
value of the loan. The current mark to
market valuation of this swap is £89,357
out of the money (2010 – £211,276 out of
the money) At 31 December 2011 the
amount drawn on the facility was £nil (2010
– £1,325,000). The largest balance owed
on this loan during 2011 was £4,575,000.
In November 2009 the Authority entered
into a multiple advance medium term loan
facility with Barclays Bank PLC up to the
sum of £16,300,000. The purpose of the
facility was to finance the new facility for
handling biomass in 2010. Monies drawn
are secured on a number of assets at Tyne
Dock, South Shields. Interest is charged at
a rate of LIBOR + 1.9057%. The LIBOR
element of the rate is hedged using an
interest rate swap at 4.95%, based on the
projected nominal value of the loan.
Group
2011
(£000’s)
2,746
6,603
7,287
2,717
Group
2010
(£000’s)
1,832
1,884
10,583
6,220
Authority
2011
(£000’s)
2,639
6,500
7,283
2,708
Authority
2010
(£000’s)
1,732
1,778
10,477
6,210
19,353 20,519 19,130 20,197
The current mark to market valuation of
this swap is £1,536,241 out of the money
(2010 – £1,204,209 out of the money).
At 31 December 2011 the amount drawn
on the facility was £14,333,000 (2010 –
£13,768,000).
The business has a bank overdraft facility
which is secured on the Tyne car terminal
up to the value of the agreed overdraft.
Obligations under finance lease are secured
against the assets to which they relate.
15. CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN one year
Group
2011
(£000’s)
Group
2010
(£000’s)
Authority
2011
(£000’s)
Authority
2010
(£000’s)
Bank loans 16,020 17,838 16,020 17,838
Obligations under finance leases 588 848 470 626
16,608 18,686 16,490 18,464
The maturity of obligations under finance
leases, which are included within the figures
above, is as follows:
Group
2011
(£000’s)
Group
2010
(£000’s)
Authority
2011
(£000’s)
Authority
2010
(£000’s)
Within one year 305 305 185 185
In the second to fifth years 627 930 510 695
Over five years 11 13 — —
943 1,248 695 880
Less: future finance charges (95) (154) (70) (107)
848 1,094 625 773