Annual Report and Accounts - Hemscott IR

NOTES TO THE FINANCIAL STATEMENTS
32. Related party transactions
The Group has a related party relationship with its subsidiaries its directors and with its pension schemes (note 28). Transactions between group companies,
which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between the Company and its subsidiaries
are disclosed below. In addition the remuneration, and the details of interests in the share capital of the Company, of the Directors, are provided in the
audited part of the remuneration report on pages 70 to 74.
The remuneration of the key management personnel of the Group is set out below in aggregate for each of the categories specified in IAS 24 Related
Party Disclosures.
2012 2011
£m £m
Short term employee benefits 7.9 7.3
Share based payments 4.4 4.9
12.3 12.2
The Company undertakes the following transactions with its active subsidiaries:
• Providing day-to-day funding from its UK banking facilities;
• Paying interest to members of the Group totalling £15.6m (2011: £6.4m);
• Levying an annual management charge to cover services provided to members of the Group of £7.9m (2011: £6.9m);
• Receiving preference dividends totalling £nil (2011: £9.2m);
• Receiving annual dividends totalling £74.2m (2011: £79.1m).
Details of balances outstanding with subsidiary companies are shown in note 18 and on the Balance Sheet on page 85.
There have been no material related party transactions with directors.
The Group advanced a total of £2.9m (2011:£2.3m) to all the Group’s associate companies in 2012. Operating transactions with the associates during the
year were not significant.
33. Analysis of changes in net debt
THE GROUP
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Term loan
and revolving Unsecured Liability to
cash and cash Finance credit facility senior US$ pension
equivalents leases and loan notes loan notes scheme Total
£m £m £m £m £m £m
At 1 January 2011 (50.9) 21.8 400.6 366.0 36.1 773.6
Cash flow (27.7) (1.5) (78.7) (72.2) (1.4) (181.5)
Fair value of BSS loan - - - (12.4) - (12.4)
Exchange movement - - - 0.5 - 0.5
Fair value movement - - - (1.5) - (1.5)
Finance charges amortised - - 3.1 - - 3.1
Amortisation of swap cancellation receipt - - - (1.1) - (1.1)
Discount unwind on liability to pension scheme - - - - 2.5 2.5
At 1 January 2012 (78.6) 20.3 325.0 279.3 37.2 583.2
Cash flow (60.5) 5.7 (58.8) - (2.8) (116.4)
Exchange movement - - - (2.7) - (2.7)
Fair value movement - - - (14.4) - (14.4)
Finance charges amortised - - 1.2 - - 1.2
Amortisation of swap cancellation receipt - - - (1.1) - (1.1)
Lease surrendered - (0.1) - - - (0.1)
Discount unwind on liability to pension scheme - - - - 2.5 2.5
31 December 2012 (139.1) 25.9 267.4 261.1 36.9 452.2
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