Table of contents

23. Finance lease liabilities
2016 2015
€ €
Minimum lease payments due
- no later than one year 46 298 29 350
- later than one year and no later than five years 127 836 9 613
174 134 38 963
less: future finance charges (40 518) (2 007)
Present value of minimum lease payments 133 616 36 956
Present value of minimum lease payments due
- no later than one year 28 730 29 350
- later than one year and no later than five years 104 886 7 606
133 616 36 956
Non-current liabilities 104 886 7 606
Current liabilities 28 730 29 350
133 616 36 956
Part of the instalment agreement relates to motor vehicles. The lease term ranges from
12 to 48 months. Interest is charged at the Kenyan bank lending rate plus 2%, the prime
rate in Botswana less 1% and 11.25% in South Africa.
The carrying value of assets held under the finance lease is €153,773 (2015: €16,360).
24. Derivative financial instruments and hedging
reserve
The full fair value of a hedging derivative is classified as a non-current asset or liability if the
remaining maturity of the hedged item is more than 12 months and, as a current asset or
liability, if the maturity of the hedged item is less than 12 months.
The derivative liability at financial year end relates to a forward foreign exchange contract
that was taken out during the year to hedge highly probable forecast transactions
denominated in Euro and has been designated as the hedging instrument to the hedged
items below.
The hedging instrument is net settled and is subject to margin calls when the fair value
increases beyond agreed levels, limiting the credit risk exposure to both counterparties to
the transaction. The instrument matures on 3 February 2017.
The notional principle amount of the outstanding forward foreign exchange contract as at
30 June 2016 was €6,393,977 ($7,098,740).
Reconciliation of fair value and net carrying amount of derivative financial instruments
2016 2015
€ €
Opening balance 316 358 -
Movement in fair value of derivative liabilities 24 751 1 157 912
Less: Settled margin calls deposits (841 554)
Carrying amount 341 109 316 358
The derivative financial liability is a level 2 in the fair value hierarchy. The fair value at 30 June
2016 is €1,185,871 (2015: €1,329,225)
The group exposure to Euro denominated publicly traded bond liabilities have been
designated as the hedged item. The bonds mature on 3 February 2017. The carrying value of
the hedged item amounts to €5,191,000 ($5,763,167) at the end of the year.
Reconciliation of gains and losses on hedged item matched 2016 2015
against the hedging instrument
€ €
Opening balance 15 394 -
Foreign exchange movement - Publicly traded bond liability 19 791 1 173 306
(Hedged item)
Mark-to-market movement - Foreign forward exchange contract 24 416 (1 157 912)
(Hedging instrument)
Hedge reserve 59 601 15 394
The hedging reserve is used to record gains and losses on derivatives that are designated
and qualify as cash flow hedges and are recognised in other comprehensive income.
Amounts are reclassified to profit and loss when the associated hedged transaction affects
profit and loss.
25. Offsetting of financial assets
and financial liabilities
The derivative financial instruments are the only financial
instrument which are subject to offsetting (refer to note
24). The gross amount of the recognised derivative
financial liability is €1,185,871 ($1,316,581) (June 2015:
€1,157,912 ($1,290,440)) which is offset against the margin
call deposits of €844,761 ($937,873) and presented as a
net derivative liability of €341,109 ($378,709) (June 2015:
€316,358 ($352,567)). There are no other amounts set-off
in the consolidated combined financial statements.
26. Trade and other payables
2016 2015
€ €
Trade and other payables 2 415 666 1 055 724
Sundry accruals 4 167 364 1 320 237
VAT 407 892 137 073
Provisions - 268 195
Currencies
6 990 922 2 781 229
The carrying amounts of trade and other payables are
denominated in the following currencies:
Kenyan Shillings 99 347 208 680
Malawi Kwacha 243 794 106 945
Botswana Pula 597 080 369 953
Euro 2 449 513 383 401
US Dollar 1 040 112 222 478
Zambian Kwacha 990 678 134 372
South African Rand 1 307 431 1 241 241
Other 262 967 114 159
27. Deposits from customers
Deposits from customers relate to GetBucks Zimbabwe.
These deposits are primarily composed of amounts payable
on demand
Individual 2016 2015
€ €
Current accounts 17 159 -
Term deposits - -
17 159 -
Small and medium
enterprises
Current accounts 212 878 -
Term deposits 158 780 -
371 658 -
Total 388 817 -
Current (no more than
318 709 -
12 months after reporting
period)
Non-current (more than
70 108 -
12 months after reporting
period)
Total 388 817 -
Deposits due to customers only include financial
instruments classified as liabilities at amortised cost. Fair
value of deposits approximates its carrying amounts.
28. Revenue
2016 2015
€ €
Interest income 30 713 637 25 151 984
Fee income 5 922 323 4 667 076
Commission on insurance 2 269 792 1 471 787
policies
38 905 752 31 290 847
29. Loan impairment
Movement on impairment of
loan book
2016 2015
€ €
9 107 634 6 813 975
For detail reconciliation of impairment of loan book, refer to
note 13.
30. Other income
Administration and
management fees received
2016 2015
€ €
193 194 281 739
Credit subscription fees 47 424 86 225
Bad debts recovered 190 064 14 995
Liabilities written back 206 095 -
Other income 20 260 23 528
657 037 406 487
| Introduction | Business Overview | Corporate Governance | Financial Statements | Other |
6 990 922 2 781 229
MyBucks Annual Report 2016 132
133 MyBucks Annual Report 2016