REG - Animalcare Group PLC - Proposed Acquisition of Ecuphar NV and Placing <Origin Href="QuoteRef">ANCR.L</Origin> - Part 4
23/06/2017 07:08
- Part 4: For the preceding part double click ID:nRSW9589Ic
18-Transfers of Assets from Customers and SIC
31-Revenue-Barter Transactions involving Advertising Services. The Standard will be effective for annual periods beginning
on or after 1 January 2018. The Ecuphar Group will make more detailed assessments of the impact over the next months and
expect to complete the assessment in the third quarter of 2017.
IFRS 16 Leases
On 13 January 2016, the IASB issued IFRS 16, Leases, which provides lease accounting guidance. Under the new guidance,
lessees will be required to present right-of-use assets and lease liabilities on the statement of financial position. At
the lease commencement date, a lessee is required to recognize a lease liability, which is the lessee's discounted
obligation to make lease payments arising from a lease, as well as a right of use asset, representing the lessee's right to
use, or control the use of, a specified asset for the lease term. IFRS 16 is effective for annual reporting periods
beginning on or after 1 January 2019, subject to endorsement by the European Union. Earlier application is permitted for
entities that apply IFRS 15, Revenue from Contracts with Customers, at or before the initial application of IFRS 16.
As at the reporting date, the Ecuphar Group has non-cancellable operating lease commitments of £2,759k, see Note 22.
However, the Ecuphar Group has not yet determined to what extent these commitments will result in the recognition of an
asset and a liability for future payments and how this will affect the Ecuphar Group's profit and classification of cash
flows.
The other standards, interpretations and amendments issued by the IASB (all of them still subject to endorsement by the
European Union), but not yet effective are not expected to have a material impact on the Ecuphar Group's future
consolidated financial statements and those applicable for the Ecuphar Group are listed below:
· Amendments to IAS 12: Recognition of Deferred Tax Assets for Unrealized Losses (issued on 19 January 2016) and
effective for annual periods on 1 January 2017, subject to endorsement by the European Union;
· Amendments to IAS 7: Disclosure Initiative (issued on 29 January 2016) and effective for annual periods on 1
January 2017;
· Clarifications to IFRS 15 Revenue from Contracts with Customers (issued on 12 April 2016) and effective for annual
periods on 1 January 2018;
· Annual Improvements to IFRS Standards 2014-2016 Cycle (issued on 8 December 2016) and effective for annual periods
on 1 January 2018;
Significant accounting judgments, estimates and assumptions
The preparation of the Ecuphar Group's consolidated special purpose financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the
accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities for future periods.
On an ongoing basis, the Ecuphar Group evaluates its estimates, assumptions and judgments, including those related to
revenue recognition, development expenses, income taxes, impairment of goodwill, intangible assets and property, plant &
equipment and business combinations.
The Ecuphar Group based its assumptions and estimates on parameters available when the consolidated special purpose
financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances arising beyond the
control of the Ecuphar Group. Such changes are reflected in the assumptions when they occur.
Internally-developed intangible assets
Under IAS 38, internally generated intangible assets from the development phase are recognized if certain conditions are
met. These conditions include the technical feasibility, intention to complete, the ability to use or sell the asset under
development, and the demonstration of how the asset will generate probable future economic benefits. The cost of a
recognized internally generated intangible asset comprises all directly attributable cost necessary to make the asset
capable of being used as intended by management. In contrast, all expenditures arising from the research phase are expensed
as incurred.
Determining whether internally generated intangible assets from development are to be recognized as intangible assets
requires significant judgment, particularly in determining whether the activities are considered research activities or
development activities, whether the product enhancement is substantial, whether the completion of the asset is technical
feasible considering a company-specific approach, the probability of future economic benefits from the sale or use.
Management has determined that the conditions for recognizing internally generated intangible assets from product
development activities are not met until shortly before the developed products are available for sale. This assessment is
monitored by the Ecuphar Group on a regular basis.
Income taxes
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgment is required to determine the amount of
deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.
As at 31 December 2016, the Ecuphar Group had £255k (2015: £58k; 2014: £142k) of tax losses carry forward and other tax
credits such as investment tax credits and notional interest deduction. These losses relate to the subsidiaries that have a
history of losses, do not expire and may not be used to offset taxable income elsewhere in the Ecuphar Group.
The Ecuphar Group may also be required to evaluate some uncertainty surrounding potential liability in relation to
uncertain tax positions. Uncertain tax positions (whether assets or liabilities) are recognized using a 'probable'
threshold in accordance with IAS 12, and they are reflected at the amount expected to be recovered from, or paid to, the
taxation authorities. It may also include interpretations of complex tax laws as well as transfer pricing considerations
which could be disputed by tax authorities. Assessing uncertain tax positions requires significant judgement from
Management.
Impairment of goodwill
The Ecuphar Group has goodwill for a total amount of £9,959k (2015: £8,974k; 2014: £2,083k) which has been subject to an
impairment test. The goodwill is tested for impairment based on a discounted cash flow model with cash flows for the next
five years derived from the budget and a residual value considering a perpetual growth rate. The recoverable amount is
sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes. The key assumptions used to determine the recoverable amount for the different CGUs are
disclosed and further explained in Note 5.
No impairment charges have been recorded during the reported periods.
Business combinations
The Ecuphar Group determines and allocates the purchase price of an acquired business to the assets acquired and
liabilities assumed as of the business combination date. The purchase price allocation process requires the Ecuphar Group
to use significant estimates and assumptions, including:
· estimated fair value of the acquired intangible assets; and
· estimated fair value of property, plant and equipment.
While the Ecuphar Group is using its best estimates and assumptions as part of the purchase price allocation process to
accurately value assets acquired and liabilities assumed at the date of acquisition, our estimates and assumptions are
inherently uncertain and subject to refinement. Examples of critical estimates in valuing certain of the intangible assets
the Ecuphar Group has acquired or may acquire in the future include but are not limited to:
· future expected cash flows from customer contracts and relationships, software license sales and maintenance
agreements;
· the fair value of the plant and equipment;
· the fair value of the deferred revenue;
· discount rates; and
· the determination of useful lives and amortization period of acquired intangible assets.
4 Business Combinations and disposals of subsidiaries
Business combinations
The Ecuphar Group did not complete any business combinations during the year ended 31 December 2016.
Esteve
On 30 April 2015, the Ecuphar Group acquired the assets related to the Animal Health business of Esteve SA, a Spanish
pharmaceutical company, through an asset purchase agreement. The consideration paid in cash for those assets amounted to
£26,125k (E36,000k). This acquisition related in substance to an integrated set of activities as defined by IFRS 3 Business
Combinations. As a result a purchase price allocation was performed at the date of acquisition. The fair values of the
related assets at acquisition date are described below.
in £'000Assets Carrying Fair value Fair value
value at adjustments acquisition
acquisition at date
date
Intangible assets − 14,582 14,582
Other non-current assets − 124 124
Inventory 4,523 423 4,946
Trade receivables − − −
Other current assets − − −
Cash − − −
4,523 15,129 19,652
Liabilities
Financial debts − − −
Deferred tax liabilities − (443) (443)
Trade payables − − −
Other liabilities − − −
− (443) (443)
Total identified assets and liabilities 4,523 14,686 19,209
Goodwill 6,916
Acquisition price − − 26,125
The purchase price allocation resulted in a residual goodwill balance recognized of £6,916k. The impact on the cash flow
position of the Ecuphar Group resulting from this business combination is as follows:
Cash flow from business combination
Consideration paid in cash 26,125
Total cash flow 26,125
The asset purchase agreement did not include any contingent consideration payable in addition to the purchase price.
The goodwill is mainly attributable to Esteve's significant commercial leverages opportunities, the value of the trained
and knowledge workforce and the significant operational and commercial synergies realized.
The acquisition has contributed since the date of acquisition until 31 December 2015 a total revenue of £16,005k and a net
loss of £(605)k. The Ecuphar Group does not have the information to disclose the impact on the revenue and the net profit
as if the acquisition has been completed on 1 January 2015.
Disposals of subsidiaries Nutriscience
On 31 October 2016, the Ecuphar Group entered into a share purchase agreement with Swedencare AB regarding the sale of one
of its subsidiaries, Nutriscience Ltd. The consideration received by the Ecuphar Group amounts to £3,507k and this resulted
in a gain of £2,432k. The effect of this transaction on the financial position and cash flows of the Ecuphar Group is as
follows:
Nutriscience
in £'000Assets Carrying value at selling date
Goodwill 419
Property, plant and equipment 53
Inventories 407
Trade receivables 419
Other receivables 37
Cash and cash equivalents 296
1,631
Liabilities
Financial debts −
Trade payables (315)
Other payables (241)
(556)
Total assets and liabilities 1,075
Gain on sale Nutriscience 2,432
Selling price received in cash 3,507
Cash flow from sale
Cash & cash equivalents transferred (296)
Selling price 3,507
Total cash flow 3,211
This disposal did not meet the IFRS 5 criteria as component of a group, as separate major line of business nor as
geographical areas of operations. Therefore discontinued operations and asset held for sale disclosures are not required.
5 Goodwill
The goodwill has been allocated to the cash generating units ("CGU") as follows:
For the year ended 31 December
in £'000 2016 2015 2014
CGU: Pharmaceuticals 9,425 8,513 1,593
CGU: Wholesale 534 461 490
Total 9,959 8,974 2,083
The changes in the carrying value of the goodwill can be presented as follows for the years 2016, 2015 and 2014:
in £'000 Gross Impairment Total
At 1 January 2014 2,229 − 2,229
Additions − − −
Currency translation (145) − (145)
At 31 December 2014 2,083 − 2,083
Additions/(disposals) 6,917 − 6,917
Currency translation (25) − (25)
At 31 December 2015 8,974 − 8,974
Additions/(disposals) (419) − (419)
Currency translation 1,403 − 1,403
At 31 December 2016 9,958 − 9,958
In addition to currency translation effects the goodwill balance increased as a result of the Esteve business combination
in 2015 with £6,917k and decreased as a result of the disposal of Nutriscience Ltd in 2016 with £(419)k (see Note 4).
As of 31 December 2016 goodwill allocated to the Pharmaceuticals CGU includes goodwill recognized as a result of past
business combinations of Esteve, Equipharma NV, Ecuphar BV and Cardon Chemicals NV. As of 31 December 2016 goodwill
allocated to the Wholesale CGU includes goodwill recognized as a result of the past business combinations of Medini NV and
Orthopaedics NV.
The Ecuphar Group has performed an impairment test based on a discounted cash flow model including cash flows derived from
the three year budget plan and residual value as of the fourth year.
Both the Pharmaceuticals and Wholesale CGU are included in their respective reportable segment Pharmaceuticals and
Wholesale.
CGU Pharmaceuticals
The recoverable amount of this cash-generating unit is determined based on a value in use calculation which uses cash flow
projections based on financial budgets approved by management covering a 5-year period. The cash flows beyond that
five-year period have been extrapolated using a steady 2% per annum growth rate. The main assumptions used for the goodwill
impairment testing include a pre-tax discount rate based on a weighted average cost of capital ("WACC") of 10.56%. Other
assumptions include the year-on-year growth rate of the revenue, gross margin and the operating costs which has been
determined by management based on past experience. It was concluded that the recoverable amount of £61,892k is
approximately £43,804k higher than the carrying value of the cash generating unit. If the year-on-year growth rate of the
revenue, gross margin and the operating costs would be zero, the headroom would decrease by approximately £16,784k. If the
discount rate would increase by 1%, the headroom would decrease by
approximately £8,349k. In both sensitivity analyses, the net recoverable amount is significantly higher than the carrying
value of the cash generating units.
CGU Wholesale
The recoverable amount of this cash-generating unit is determined based on a value in use calculation which uses cash flow
projections based on financial budgets approved by management covering a 5-year period. The cash flows beyond that
five-year period have been extrapolated using a steady 2% per annum growth rate. The main assumptions used for the goodwill
impairment testing include a pre-tax discount rate (based on WACC) of 10.56%. Other assumptions include the year-on-year
growth rate of the revenue, gross margin and the operating costs which has been determined by management based on past
experience. It was concluded that the recoverable amount of £5,895k is approximately £4,127k higher than the carrying value
of the cash generating unit. If the year-on-year growth rate of the revenue, gross margin and the operating costs would be
zero, the headroom would decrease by approximately £1,345k. If the discount rate would increase by 1%, the headroom would
decrease by approximately £628k. In both sensitivity analyses, the net recoverable amount is higher than the carrying value
of the cash generating units.
6 Intangible assets
The changes in the carrying value of the intangible assets can be presented as follows for the years 2016, 2015 and 2014:
in £'000Acquisition value In Process R&D Patents, Product Capitalized software Total
distribution portfolios &product
rights & developmentcosts
licenses
At 1 January 2014 − 1,580 10,325 − 11,905
Additions (11) 1,999 543 − 2,531
Change due to business combinations − − − − −
Disposals − (1,211) − − (1,211)
Exchange differences − (127) (690) − (817)
Other 11 − − − 11
At 31 December 2014 −------- 2,241------- 10,178------- −------- 12,419-------
Additions − 34 747 − 781
Change due to business combinations 2,417 8,798 3,367 − 14,582
Disposals − (15) − (15)
Currency translation 34 (8) (542) − (516)
Other − − − − −
At 31 December 2015 2,451------- 11,065------- 13,735------- −------- 27,251-------
Additions − 1,735 1,036 − 2,771
Change due to business combinations − − − − −
Disposals − (2,090) − − (2,090)
Currency translation 388 1,736 2,219 8 4,351
Transfers − − − 179 179
Other − (9) (34) − (43)
At 31 December 2016 2,839 12,437 16,956 187 32,419
------- ------- ------- ------- -------
In Process R&D Patents, Product Capitalized software Total
distribution portfolios &product
rights & developmentcosts
licenses
AmortizationAt 1 January 2014 − (156) (4,323) − (4,479)
Additions 2 (1,238) (956) − (2,192)
Disposals − 1,211 − − 1,211
Change due to business combinations − − − − −
Impairments − − − − −
Currency translation − 11 311 − 322
Other (2) − − − (2)
At 31 December 2014 − (172) (4,968) − (5,140)
Additions (159) (1,635) (1,163) − (2,957)
Disposals − − − − −
Change due to business combinations − − − − −
Impairments − − − − −
Currency translation (2) (13) 276 − 261
Other 1 − (1) − −
At 31 December 2015 (160) ------- (1,820)------- (5,856)------- −------- (7,836)-------
Additions (268) (2,256) (1,457) − (3,981)
Disposals − 2,016 7 − 2,023
Change due to business combinations − − − − −
Currency translation (39) (299) (991) (2) (1,331)
Transfers − − (1) (55) (56)
Other − 8 − − 8
At 31 December 2016 (467) (2,351) (8,298) (57) (11,116)
Net carrying value
At 31 December 2016 2,372 10,086 8,658 130 21,246
At 31 December 2015 2,291 9,245 7,879 − 19,415
At 31 December 2014 − 2,069 5,210 − 7,279
In Process Research & Development relates to acquired development projects as part of the Esteve business combination in
2015.
Patents, distribution rights & licenses include amounts paid for exclusive distribution rights as well as distribution
rights acquired as part of the Esteve business combination in 2015.
Product portfolios & product development costs relate to amounts paid for acquired brands as well as external and internal
product development costs capitalized on the development projects in the pipeline for which the capitalization criteria are
met.
At 31 December 2016, the remaining amortization period for the in process R&D intangibles amounts to 8.3 years.
The total amortization charge for 2016 is £3,981k (2015: £2,957k; 2014: £2,192k) which is included in lines cost of sales,
research and development expenses, sales and marketing expenses and general and administrative expenses of the consolidated
income statement.
7 Property, plant & equipment
The changes in the carrying value of the property, plant and equipment can be presented as follows for the years 2016, 2015
and 2014:
in £'000Acquisition value At 1 January 2014AdditionsChange due to business combinations Equipment Office Finance Leasehold Total
furniture and leases improvements
equipment
366 953 − 377 1,696
63− 175− −− 52− 290−
Disposals (40) (146) − (92) (278)
Transfers − − − − −
Currency Translation (25) (63) − (23) (111)
Other − − −
At 31 December 2014 364 919 − 314 1,597
Additions 84 250 51 73 458
Change due to business combinations − − − − −
Disposals − (103) − − (103)
Transfers − − − − −
Currency Translation (20) (52) 1 (17) (88)
Other − − − − −
At 31 December 2015 428------- 1,014------- 52------- 370------- 1,864-------
Additions 25 391 − 47 463
Change due to business combinations (196) (59) − (164) (419)
Disposals − (23) − − (23)
Transfers − (174) − − (174)
Currency Translation 60 166 8 53 287
Other − − − − −
At 31 December 2016 317 1,315 60------- ------- ------- ------- ------- 306 1,998
in £'000Depreciation Equipment Officefurniture and equipment Finance Leaseholdimprovements Total
leases
At 1 January 2014 (323) (710) − (334) (1,367)
Depreciation charge for the year (20) (108) − (26) (154)
Disposals 37 98 − 90 225
Transfers − − − − −
Change due to business combinations − − − − −
Currency Translation 20 47 − 20 87
Other − (2) − − (2)
At 31 December 2014 (286)------- (675)------- −------- (250)------- ------- (1,211)
Depreciation charge for the year (32) (95) (10) (21) (158)
Disposals − 96 − − 96
Transfers − − − − −
Change due to business combinations − − − − −
Currency Translation 15 40 − 14 69
Other − 2 − − 2
At 31 December 2015 (303)------- (632)------- (10) ------- (257)------- ------- (1,202)
Depreciation charge for the year (37) (234) (11) (44) (326)
Disposals − 17 − − 17
Transfers − 52 − − 52
Change due to business combinations 149 57 − 160 366
Currency translation (43) (105) (2) (36) (186)
At 31 December 2016 (234) (845) (23) (177) (1,279)
Net book valueAt 31 December 2016 83 470 37 129 719
At 31 December 2015 125 382 42 113 662
At 31 December 2014 78 244 − 64 386
At 1 January 2014 43 243 − 43 329
The investments in property, plant & equipment in 2016 amounted to £463k (2015: £458k; 2014:
£290k) and mainly related to the acquisitions of IT and office equipment. The additions of 2015 and 2014 essentially
related to acquisitions of office furniture and vehicles.
The Ecuphar Group realized a net result on disposals of property, plant and equipment of £0k in 2016 (2015: gain of £7k;
2014: loss of £1k).
No impairment of property, plant and equipment was recorded. Finance leases
The carrying value assets held under finance leases at 31 December 2016 was £37k (2015: £42k; 2014: £0k). Finance leases
mainly relate to leased trucks.
Borrowing costs
No borrowing costs were capitalized during any of the years ended 31 December 2016, 2015 and 2014.
9 Inventories
Inventories include the following:
in £'000 For the year ended 31 December 1 January
2016 2015 2014 2014
Raw materials 966 768 844 876
Goods purchased for resale 12,288 12,256 5,539 6,060
Total inventories (at cost or net realizable value) 13,254 13,024 6,383 6,936
The amount of inventory recognized as an expense during 2016 amounts to £38,918k (2015: £29,561k; 2014: £23,331k).
Inventory write downs during 2016 amounted to £523k (2015: £621k; 2014: £167k).
10 Trade receivables
The trade receivables include the following:
For the year ended 31 December 1 January
in £'000 2016 2015 2014 2014
Trade receivables 10,905 9,825 3,914 3,726
Allowance on trade receivables (123) (23) (25) (27)
Total 10,781 9,801 3,889 3,699
Trade receivables are non-interest bearing and are generally on payment terms of 30 to 90 days.
As at 31 December 2016, trade receivables of an initial value of £123k (2015: £23k; 2014: £25k) were impaired and fully
provided for. The table below shows the changes in the allowance of receivables.
in £'000
At 1 January 2014 (27)
Exchange difference 2
At 31 December 2014 (25)
Reversal impairment 1
Exchange difference 2
Other movement (1)
At 31 December 2015 (23)
Additional impairments (102)
Change in consolidation scope 9
Exchange difference (8)
Other movement 1
At 31 December 2016 (123)
11 Cash and cash equivalents and held to maturity investments Cash and cash equivalents include the following:
For the year ended 31 December 1 January
in £'000 2016 2015 2014 2014
Cash at bank 945 746 958 1,114
Cash equivalents 6 3 8 39
Total 951 749 966 1,153
There were no restrictions on cash during 2016, 2015 or 2014.
12 Equity Share capital
The share capital of the parent company Ecuphar NV consists of 14,174,000 ordinary nominative shares at 31 December 2016
(2015: 14,174,000; 2014: 11,614,000) with no nominal but par value of 0.51 in 2016 (2015: 0.51; 2014: 0.44) for a total
amount £7,255k at 31 December 2016
(2015: £7,255k; 2014: £5,148k).in £'000, except share data Total number of shares Total share- Total share-
holders' premium
capital
Outstanding at 1 January 2014 11,614,000 5,148 −
Capital increase in cash − − −
Other − − −
Outstanding on 31 December 2014 11,614,000 5,148 −
Capital increase in cash 2,560,000 2,107 8,821
Other
Outstanding on 31 December 2015 14,174,000 7,255 8,821
Capital increase in cash − − −
Other − − −
Outstanding on 31 December 2016 14,174,000 7,255 8,821
Par Value 2016 0.5119
Par Value 2015 0.5119
Par Value 2014 0.4433
During 2015 two capital increases occurred through subscriptions in cash, the first on 15 July 2015 representing 2,500,000
shares for a total consideration £2,068k and the second on 26 October 2015 representing 60,000 shares for a total
consideration of £39k. Ordinary shares are not divided into categories.
Share premium
In Belgium, the portion of the capital increase in excess of par value is typically allocated to share premium.
The carrying value of the share premium is £8,821k at 31 December 2016 (2015: £8,821k; 2014: £0k). The change in 2015 of
£8,821k is the result of the capital increases explained in the paragraph above.
Other reserves
The nature and purpose of the reserves is as follows:
For the year ended 31 December 1 January
in £'000 2016 2015 2014 2014
Legal reserve 515 515 515 515
Other comprehensive income 2,003 (507) (354) −
Other reserves 2,518 8 161 515
The legal reserve is increased by reserving 5% of the yearly Belgian statutory profit until the legal reserve reaches at
least 10% of the shareholders' capital. The legal reserve cannot be distributed to the shareholders.
Dividends
The Ecuphar Group paid dividends to its ordinary shareholders during 2016 for an amount of £1,469k (2015: £108k; 2014:
£0k).
Non-controlling interest
The non-controlling interest is £2k at 31 December 2016 (2015: £2k; 2014: £2k). This non-controlling interest represents
0.2% of the share capital of Medini NV and 0.02% of Orthopaedics.be NV which are held by third parties.
14 Borrowings
The loans and borrowings include the following:
in £'000 (except if mentioned otherwise) Interest Maturity For the year ended 31 December 1 January
rate
2016 2015 2014 2014
Investment loan E1,500,000 Euribor
+1.25% Aug18 − 421 615 837
Investment loan E750,000 2.52% Dec16 − 184 391 627
Investment loan E1,500,000 3.97% Jun18 − 394 586 806
Investment loan E750,000 2.60% Jan18 − 318 481 −
Investment loan E250,000 2.11% Dec17 − 94 148 209
Investment loan E2,489,820 3.75% March16 − 87 371 700
Investment loan E800,800 1.50% Feb18 − 331 509 −
Investment loan E1,500,000 3.75% Jul18 − 434 628 851
Investment loan E1,500,000 1.50% Feb18 − 621 953 −
Investment loan E1,500,000 4.03% Jun18 − 407 600 821
Investment loan E750,000 2.36% Dec17 − 276 440 627
Other loans 1.44% 75 250 312 25
Revolving credit facilities Euribor
+1.50% March 22 21,482 − − −
Roll over investment facility Euribor
+1.50% March 22 3,176 − − −
Straight loans Euribor
+2% − 24,811 4,711 5,981
Other loans − − − −
------ ------ ------ ------
Total loans and borrowings 24,733 28,628 10,745 11,484
of which non-current 24,102 2,019 3,837 4,020
current 631 26,609 6,908 7,464
Revolving credit facilities and roll over investment facilities
Mid 2016, the Ecuphar Group refinanced all its outstanding investment loans with different banks. Financing arrangements
have been entered into with four Belgian banks. These financing arrangements have been split equally amongst these four
banks. The new agreements consist of:
· E 41.5m Revolving credit facilities
· E 10m available acquisition financing
· E 4.08m investment loans
The loans have a variable, EURIBOR based interest rate, increased with a margin of 1.5%. The revolving credit facilities
and the acquisition financing have a bullet maturity on March 2022. The investment loans are repaid in 23 monthly
instalments.
15 Provisions
Provisions consist of the following:
For the year ended 31 December 1 January
in £'000 2016 2015 2014 2014
Provisions for redundancy 20 − − −
Provisions for risks and charges 196 25 8 −
Total 216 25 8 −
Provisions for risks and charges amount to £196k at 31 December 2016 (2015: £25k; 2014: £8k) and relate to various
obligations which are not individually significant.
The assessment of the accounting treatment of the Belgian employee benefit contribution plans with a minimal guaranteed
return was based on actuarial calculations which resulted in an immaterial impact as only a limited number of individuals
can benefit from the plan and given the limited fixed amount which is being covered per covered individual. No provision
has been recognized as of 31 December 2016, 2015 and 2014. As a result no further disclosures have been provided.
16 Deferred income and accrued charges
Deferred income and accrued charges consists of the following:
For the year ended 31 December
in £'000 2016 2015 2014
Accrued charges 806 194 129
Deferred income 6 93 −
Other − (1) −
Total 812 286 129
Accrued charges mainly relate to accrued management bonuses in Ecuphar NV for £350k and several accrued charges in Ecuphar
Veterinaria for an amount of £318k.
17 Other current liabilities
Other current liabilities include the following:
in £'000 For the year ended 31 December 1 January
2016 2015 2014 2014
Payroll-related liabilities 572 683 253 281
Other − − 1 −
Other current liabilities 1,665 905 1,903 1,257
Total 2,237 1,588 2,157 1,538
Other current liabilities mainly relate to an outstanding payable at year-end for expected contractual pay-outs under a
license agreement, amounting to £1,655k at 31 December 2016 (2015: £892k; 2014: £1,896k; 1 January 2014: £1,255k).
18 Fair value
Financial assets
The carrying value and fair value of the financial assets for 31 December 2016, 2015 and 2014 can be presented as follows:
Carrying value Fair value
in £'000 2016--------- 2015--------- 2014--------- 1 Jan 2014 2016--------- 2015--------- 2014--------- 1 Jan 2014
Financial assets measured at fair value
Assets available for sale at
FV through OCI 423 1 1 − 423 1 1 −
Loans and receivables measured at amortized cost
Trade and other receivables (current) 11,737 11,032 4,166 4,001
- More to follow, for following part double click ID:nRSW9589IeRecent news on Animalcare
See all newsREG - Animalcare Group PLC - Grant of options and PDMR Dealing
AnnouncementREG - Animalcare Group PLC - Sale of equity in STEM Animal Health Inc.
AnnouncementREG - Animalcare Group PLC - Investor presentation via Investor Meet Company
AnnouncementREG - Animalcare Group PLC - Preliminary Unaudited Full Year Results 2023
AnnouncementREG - Animalcare Group PLC - Disposal of Identicare Ltd
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