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BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012
notes to the consolidated financial statements
continued
26
OBLIGATIONS UNDER FINANCE LEASES
Minimum
lease payments
Present value of
minimum lease payments
29 December 31 December 29 December 31 December
£m 2012 2011 2012 2011
Amounts payable under finance leases:
Within one year 0.1 0.9 0.1 0.8
In the second to fifth years inclusive 0.3 2.3 0.3 1.8
0.4 3.2 0.4 2.6
Less: future finance charges – (0.6) – –
Present value of lease obligations 0.4 2.6 0.4 2.6
Analysed as:
Amount due for settlement within 12 months (shown within current liabilities) 0.1 0.8
Amount due for settlement after 12 months 0.3 1.8
0.4 2.6
It is the Group’s policy to lease certain fixtures and equipment under finance leases. The weighted average lease term outstanding is 2.8 years
(2011: 4.5 years). For the 52 weeks ended 29 December 2012, the weighted average effective borrowing rate was 3.94% (2011: 4.20%). Interest rates
are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations are denominated in Euros amounting to £0.3 million (2011: £2.3 million) and Hong Kong dollars £0.1 million (2011: £0.1 million) and the fair
value of the Group’s lease obligations approximates their carrying amount. In 2011, there was also £0.2 million of finance lease obligations denominated
in Sterling which have now expired. The Group’s obligations under finance leases are secured by the lessors’ rights over the leased assets.
27
TRADE AND OTHER PAYABLES
29 December 31 December
£m 2012 2011
Trade payables 190.6 197.1
Social security and other taxation 2.0 3.2
Deferred consideration 0.1 0.3
Other payables 30.5 31.4
Accruals 79.6 83.5
302.8 315.5
Less: amounts due after one year
Deferred consideration – (0.1)
Other payables (0.1) (0.2)
Trade and other payables due within one year 302.7 315.2
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for
trade purchases is 66 days (2011 – 60 days). No interest is incurred against trade payables.
The Directors consider that the carrying amount of trade payables approximates to their fair value.
The following table is an analysis of the Group’s trade payables by currency:
29 December 31 December
£m 2012 2011
GBP 153.2 143.7
USD 3.1 3.3
Euro 28.5 43.6
CZK 0.4 0.4
ZAR 1.8 1.7
RMB 3.2 3.4
CAD 0.4 0.2
HKD – 0.8
190.6 197.1
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