Pinewood Shepperton plc Annual Report ... - Pinewood Studios

104 Pinewood Shepperton plc Annual Report & Accounts 2010Company UK GAAP financial statements continuedNotes to the financial statements continued11. Creditors: amounts falling due after more than one year continuedCash flow hedgeThe Company borrows in sterling at floating rate and uses interest rate swap agreements to manage the exposure tointerest rate fluctuations. The interest rate swap is monitored to ensure its continued effectiveness. The fair value ofthe interest rate swap contracts are determined by reference to market values for similar instruments.At 31 December, the Group had the following interest rate swaps in place to minimise the volatility in cash flows froma change in LIBOR:Effective interest rate% MaturityCash flow hedge 2.89% + variable margin 1 July 2013 7,500 7,500Cash flow hedge 5.195% + variable margin 1 July 2013 15,000 15,00022,500 22,500The interest rate swaps held are determined to be effective hedges and the interest swap finance costs are charged tothe income statement when they are payable. These are payable on a quarterly basis in March, June, September andDecember.12. Share capitalAuthorisedOrdinary shares of 10p each 7,000 7,0007,000 7,000Issued, called up and fully paid2010 2009No. £000 No. £000Ordinary shares of 10p each 46,104,906 4,610 45,944,791 4,594Shares issued under the Pinewood Shepperton plcSharesave scheme:10p ordinary shares issued on 14 September 2009 – – 101,990 1010p ordinary shares issued on 30 October 2009 – – 58,125 610p ordinary shares issued on 31 March 2010 127,100 13 – –46,232,006 4,623 46,104,906 4,610The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one voteper share at the general meetings of the Company.2010£0002010£0002009£0002009£000