Jupiter Annual Report 2010 - Jupiter Asset Management

Financial statements – continuation | Notes to the financial statements
34. Financial risk management continued
■■Liquidity risk
Liquidity risk is the risk that the Group may be unable to meet its payment obligations as they fall due or at a significantly higher cost. The Group
produces a cash flow forecast to ensure all assets and liabilities are managed efficiently.
The Group’s objectives are:
■■
■■
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ensuring both the Group as a whole and individual entities within the Group have access to sufficient liquid funds to trade solvently and meet
trading liabilities as they fall due;
allowing the Group to maintain a flexible dividend policy, taking reference to prior year and prospective profitability, cash flow and balance
sheet; and
providing the Group with appropriate flexibility over the transferability of its capital and cash balances.
Surplus cash held by the operating entities over and above balance required for working capital management is held in interest bearing deposits
of up to 90 days and the regulated companies in particular ensure that, sufficient capital is kept to meet regulatory requirements.
The Group currently has access to a revolving credit facility of £10m (2009: £10m) which is unutilised.
The table below summarises the maturity profile of the Group’s financial liabilities at 31 December 2009 and 2010 based on contractual
undiscounted payments:
At 31 December 2010 At 31 December 2009
Financial liabilities
Within 1 year
or repayable
on demand
£m
1-5 years
£m
> 5 years
£m
Total
£m
Within 1 year
or repayable
on demand
£m
1-5 years
£m
> 5 years
£m
Total
£m
Loans and borrowings* – 281.5 – 281.5 17.5 38.1 4,813.3 4,868.9
Trade and other payables 143.6 1.0 – 144.6 143.6 0.6 – 144.2
Financial liabilities at fair
value through profit or loss
Derivative financial
instruments
7.0 – – 7.0 – – – –
– – – – 8.7 – – 8.7
Total 150.6 282.5 – 433.1 169.8 38.7 4,813.3 5,021.8
*Includes bank loans, Preferred Finance Securities and restricted ordinary shares.
The table below summarises the maturity profile of the Company’s financial liabilities at 31 December 2009 and 2010 based on contractual
undiscounted payments:
At 31 December 2010 At 31 December 2009
Financial liabilities
Within 1 year
or repayable
on demand
£m
1-5 years
£m
> 5 years
£m
Total
£m
Within 1 year
or repayable
on demand
£m
1-5 years
£m
> 5 years
£m
Total
£m
Loans and borrowings* 0.8 1.8 – 2.6 – – 27.8 27.8
Trade and other payables 0.4 – – 0.4 – 8.7 – 8.7
Total 1.2 1.8 – 3.0 – 8.7 27.8 36.5
*Includes bank loans, Preferred Finance Securities and restricted ordinary shares.
Annual Report & Accounts 2010 101 Jupiter Fund Management plc