Full-year - Chime Communications PLC

Notes to the consolidated financial statements25. Trade and other payables2008 2007£’000 £’000Trade creditors 25,318 14,701Other taxation and social security 3,126 3,226Accruals and deferred income 38,366 37,733Other creditors 2,310 2,007Loan notes 416 90769,536 58,574The average credit period taken for trade purchases is 38 days (2007 – 31 days). The Directors consider that the carrying amount of tradepayables approximates to their fair value.The loan notes are guaranteed against the loan note deposits of the same amount included within cash and cash equivalents. Interest accruingon the deposit is payable to the holders of the loan notes less any costs arising.Loan notes totalling £416,055 are outstanding as part of the initial and contingent consideration on the acquisition of HHCL Group Limited, RooseHoldings Limited and VCCP Limited.Loan notes totalling £5.5 million were issued to senior employees of HHCL Group Limited in two instalments, the balance outstanding at31 December 2008 being £0.277 million (2007: £0.29 million). The loan notes are repayable on giving 90 days’ notice to the loan note holder.Loan notes totalling £8.6 million were issued to the original shareholders of Roose Holdings Limited as part of the initial and contingentconsideration. The loan notes are repayable at anytime after one year from the date of issue. The balance outstanding at 31 December 2008 is£0.002 million (2007 – £0.02 million).Loan notes totalling £7.7 million were issued to the original shareholders of VCCP Limited for the contingent consideration. The loan notes arerepayable at any time after six months from the date of issue. The balance outstanding at 31 December 2008 is £0.136 million (2007 – £nil).Interest payable on loan notes is in the range of 1.5% to 5.85%.The loan notes are guaranteed by Royal Bank of Scotland plc, unless otherwise stated, who hold a deposit of £0.42 million against them.The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.26. Obligations under finance leasesAmounts payable under finance leasesMinimum Present Minimum Presentlease value of lease lease value of leasepayments payments payments payments2008 2008 2007 2007£’000 £’000 £’000 £’000Within one year 53 48 57 49Between one and two years 16 16 42 42Between two and three years – – 12 1169 64 111 102Less: future finance charges (5) – (9) –Present value of finance lease obligations 64 64 102 102Less: Amount due for settlement within 12 months (shown under current liabilities) (48) (49)Amount due for settlement after 12 months 16 53It is the Group’s policy to lease certain of its motor vehicles, fixtures, fittings and equipment under finance leases. The lease term is three years.The finance lease bears interest at variable rate of 1.4% above base rate.All lease obligations are denominated in sterling.The fair value of the Group’s lease obligations approximates their carrying amount.The Group’s obligations under finance leases are secured by the lessors’ charges over the leased assets.74Chime Communications plc