NATS-Annual-Report-2015
NATS-Annual-Report-2015
NATS-Annual-Report-2015
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<strong>Annual</strong> <strong>Report</strong> and Accounts <strong>2015</strong> | <strong>NATS</strong> Holdings Limited<br />
Financial Statements 122<br />
Notes forming part of the<br />
consolidated accounts<br />
(continued)<br />
19. Financial instruments (continued)<br />
At 31 March <strong>2015</strong>, the aggregate amount of the unrealised loss under forward foreign exchange contracts deferred in the hedge reserve<br />
relating to the exposure on these future transactions was £5.1m (2014: £0.3m unrealised gain). The majority of these contracts will mature<br />
within the first three months of the next financial year at which stage the amount deferred in equity will be realised in the income statement.<br />
In addition to the above, NERL has entered into average rate forward agreements with a fixing date after 31 March <strong>2015</strong> to sell euro<br />
anticipated to be received in July <strong>2015</strong> in respect of UK en route revenues. The value of these cash flows is £62.2m. These contracts are<br />
also designated as cash flow hedges. They are not included in the table above.<br />
Interest rate risk management<br />
The group is exposed to interest rate risk to the extent that it holds borrowings at fixed, floating and index-linked interest rates. Its interest<br />
rate risk management policies, which are kept under continuous review, are specific to NERL. <strong>NATS</strong> Services and <strong>NATS</strong> Limited had no<br />
borrowings at 31 March <strong>2015</strong> (2014: £nil).<br />
The group seeks to minimise NERL’s exposure to movements in interest rates by ensuring NERL holds an appropriate balance of fixed,<br />
floating and index-linked debt as a percentage of its net debt by the use of interest rate swap contracts and index-linked swap contracts.<br />
The group’s exposure to interest rates on financial assets and financial liabilities is detailed in the liquidity risk management section of this<br />
note. The group held no interest rate swaps at 31 March <strong>2015</strong> (2014: none).<br />
Financial<br />
Statements