Annual Report 2012 - Development Securities PLC

£38,000,000 variable rate loan
£2,700,000 loan capital amortises over the term of the loan. The remaining £35,213,000 is repayable in one instalment on 16th December 2016.
The current balance outstanding on the facility is £37,913,000.
£57,565,000 fixed rate loan
£25,665,000 loan capital amortises over the term of the loan. The remaining £31,900,000 is repayable in one instalment on 12th March 2025.
The current balance outstanding on the facility is £56,128,000.
£22,470,000 fixed rate loan
£9,980,000 loan capital amortises over the term of the loan. The remaining £12,490,000 is repayable in one instalment on 12th March 2025.
The current balance outstanding on the facility is £22,176,000.
€47,000,000 variable EURIBOR loan notes
These unsecured loan notes were issued on 20th September 2007 and are denominated in Euros. They are repayable on 25th October 2027.
£16,500 loan notes
These unsecured loan notes were repayable in 1999. The balance of £16,500 represents the residual amount of unredeemed loan notes.
A full explanation of the Group’s borrowings and any changes since the balance sheet date can be found in the Financial Review on pages 36 to 44.
Financial Statements
c) Financial risk management
The Group’s activities expose it to a variety of financial risks: market risk (including cash flow interest rate risk, foreign currency risk, fair value interest rate
risk and price risk), credit risk and liquidity risk. The Group’s overall risk management focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Group’s financial performance.
The Group defines capital as total equity and monitors this on the basis of gearing.
The nature and extent of the Group’s financial risks, and the Directors’ approach to managing those risks, are described in the Financial Review on pages 39
to 40 and below. This note provides further detailed information on these risks.
Interest rate maturity profile of financial liabilities
The following table sets out the carrying amount by maturity of the Group’s financial instruments that are exposed to interest rate risk:
Within
one year
£’000
One to two
years
£’000
Two to three
years
£’000
Three to four
years
£’000
Four to five
years
£’000
29th February 2012 Maturity
More than
five years
£’000
Fixed rate borrowings — — — — — 98,304 98,304
Variable rate borrowings 3,740 — 3,000 6,200 — — 12,940
Variable rate borrowings with interest rate
caps or swaps 4,682 353 7,160 5,937 37,913 39,339 95,384
8,422 353 10,160 12,137 37,913 137,643 206,628
Within
one year
£’000
One to two
years
£’000
Two to three
years
£’000
Three to four
years
£’000
Four to five
years
£’000
Total
£’000
31st December 2010 Maturity
More than
five years
£’000
Fixed rate borrowings — — — — — 77,565 77,565
Variable rate borrowings 848 — 31,113 — 6,200 — 38,161
Variable rate borrowings with interest rate
caps or swaps — 6,565 15,296 — — 40,298 62,159
848 6,565 46,409 — 6,200 117,863 177,885
Interest on financial instruments classified as variable rate is re-priced at intervals of less than one year. Interest on financial instruments classified as fixed
rate is fixed until the maturity of the instrument. The other financial assets and financial liabilities of the Group that are not included above are non-interest
bearing and are therefore not subject to interest rate risk.
Total
£’000
Development Securities PLC / Annual Report 2012 95