Full-year - Chime Communications PLC

More documents

Recommendations

Info

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
Notes to the consolidated financial statements27. Bank overdrafts and loans2008 2007£’000 £’000Bank loans – 8,500Cost of raising finance – (125)– 8,375The borrowings are repayable as follows:On demand or within one year – –In the second year – 8,375In the third to fifth year – –– 8,375Amount due for settlement after 12 months – 8,375All borrowings are in sterling.Cash deposits and bank loans are held at either variable rates of interest or at rates fixed for periods of no longer than three months.The principal features of the Group’s borrowings are as follows:(i)The Group has a rolling overdraft facility of £2 million. The overdraft facility is repayable on demand.(ii) The Group has a committed facility. The facility is £30 million. The term of the facility is until 30 June 2013.(iii)(iv)The bank loan bears interest at 1.3% above LIBOR and the overdraft bears interest at 1.3% above base rate.A cross-guarantee exists between each of the subsidiaries and the parent company. Royal Bank of Scotland plc holds debentures over theassets of the Company and its subsidiaries in respect of the bank loans.(v) The weighted average interest rate applied in the period is 6.08% (2007 – 6.01%)At 31 December 2008, the Group had available £30 million (2007 – £14.5 million) of undrawn committed borrowing facilities in respect of whichall conditions precedent had been met.The fair values of bank overdrafts and loans are determined by considering the maturity dates and market rates of interest. At 31 December 2008there was no material difference between the fair value of financial assets and financial liabilities and their book value.Annual Report & Accounts 2008 75
Page 1 and 2:
Annual Report & Accounts 2008“The
Page 4 and 5:
Chairman’s statementChairman’ss
Page 6 and 7:
Chief Executive’s reviewA time fo
Page 8 and 9:
Public RelationsPublicRelationsDivi
Page 10 and 11:
Public RelationsWinningClient: Pres
Page 12 and 13:
Public RelationsGrowingClient: Tesc
Page 14 and 15:
Public RelationsCharmingClient: Tex
Page 16:
Public RelationsPhilosophisingClien
Page 19 and 20:
Advertising and Marketing ServicesV
Page 21 and 22:
Advertising and Marketing Chime Ser
Page 23 and 24:
Advertising and Marketing Chime Ser
Page 26 and 27: Advertising and Marketing ServicesC
Page 28 and 29: Research and EngagementResearch and
Page 30 and 31: Chime Research division and Engagem
Page 32 and 33: Finance Director’s reviewFinance
Page 34 and 35: Board of DirectorsDirectorsBoard of
Page 36 and 37: Executive Management TeamExecutive
Page 38 and 39: Directors’ statement on corporate
Page 40 and 41: Directors’ statement on corporate
Page 42 and 43: Directors’ remuneration reportDir
Page 44 and 45: Directors’ remuneration reportThe
Page 46 and 47: Directors’ remuneration reportDir
Page 48 and 49: Directors’ reportDirectors’ rep
Page 50 and 51: Statement of Directors’ responsib
Page 52 and 53: Consolidated income statementConsol
Page 54 and 55: Consolidated balance sheetConsolida
Page 56 and 57: Notes to the consolidated financial
Page 90 and 91: Independent auditors’ reportIndep
Page 92 and 93: Notes to the company financial stat
Page 98 and 99: Information for shareholdersInforma
Page 100: Chime Communications plc14 Curzon S
show all

Full-year - Chime Communications PLC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?