REG - Compass Group PLC - Final Results <Origin Href="QuoteRef">CPG.L</Origin> - Part 7

CompassAnnouncement

26/11/2014 07:11

- Part 7: For the preceding part double click  ID:nRSZ9967Xf 

at current market rates for similar financial instruments.  The fair values have been determined by reference to Level 2 inputs as defined by the fair value hierarchy of IFRS 13 'Fair value measurements'. The table below shows the fair value of borrowings excluding accrued interest:  
                                                                                                                                                                                                                                                                                                                                                                                                                          2014      2013   
                                                                                                                                                                                                                                                                                                                                                                                                                          Carrying  Fair   Carrying  Fair   
 Carrying value and fair value of borrowings (excluding finance leases)                                                                                                                                                                                                                                                                                                                                     value  value  value     value  
 £m                                                                                                                                                                                                                                                                                                                                                                                                         £m     £m     £m        
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 Bank overdrafts                                                                                                                                                                                                                                                                                                                                                                                                          37        37     20        20     
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 Bank loans                                                                                                                                                                                                                                                                                                                                                                                                               306       306    305       305    
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 Loan notes                                                                                                                                                                                                                                                                                                                                                                                                               1,076     1,095  1,147     1,170  
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 £250m Eurobond Dec 2014                                                                                                                                                                                                                                                                                                                                                                                                  251       253    262       267    
 E600m Eurobond Feb 2019                                                                                                                                                                                                                                                                                                                                                                                                  485       517    510       534    
 E500m Eurobond Jan 2023                                                                                                                                                                                                                                                                                                                                                                                                  402       403    -         -      
 £250m Eurobond Jun 2026                                                                                                                                                                                                                                                                                                                                                                                                  249       259    -         -      
 Bonds                                                                                                                                                                                                                                                                                                                                                                                                                    1,387     1,432  772       801    
 Borrowings (excluding finance leases)                                                                                                                                                                                                                                                                                                                                                                             2,806  2,870     2,244  2,296     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 
 
                                                             2014   2013     
                                                                    Present         Present  
 Gross and present value of finance lease liabilities        Gross  value    Gross  value    
                                                         £m  £m     £m       £m     
                                                                                             
 Finance lease payments falling due:                                                         
 Within 1 year                                               5      5        7      6        
 In 2 to 5 years                                             9      8        11     11       
 In more than 5 years                                        5      4        4      4        
                                                             19     17       22     21       
 Less: Future finance charges                                (2)    -        (1)    -        
 Gross and present value of finance lease liabilities        17     17       21     21       
 
 
19 Short-term and long-term borrowings (continued) 
 
                                                                                                                                                      2014        2013     
                                                                                                                                                                  Finance                     Finance         
                                                                                                                                                      Borrowings  leases   Total  Borrowings  leases   Total  
 Borrowings by currency                                                                                                                               £m          £m       £m     £m          £m       £m     
                                                                                                                                                                                                              
 Sterling                                                                                                                                             835         -        835    599         -        599    
 US Dollar                                                                                                                                            1,040       1        1,041  1,111       2        1,113  
 Euro                                                                                                                                                 904         13       917    520         13       533    
 Japanese Yen                                                                                                                                         -           -        -      -           -        -      
 Other                                                                                                                                                27          3        30     14          6        20     
 Total                                                                                                                                                2,806       17       2,823  2,244       21       2,265  
                                                                                                                                                                                                              
                                                                                                                                                                                                              
 The Group had the following undrawn committed facilities available at 30 September, in respect of which all conditions precedent had then been met:  
                                                                                                                                                                                                              
 
 
 Undrawn committed facilities              2014   2013  
                                       £m  £m     
                                                        
 Expiring between 1 and 5 years            1,000  700   
                                                        
                                                              
 
 
 20 Derivative financial instruments                       
                                                           
 Capital risk management                                   
                                                                     
 The Group manages its capital structure to ensure that    
 it will be able to continue as a going concern. The       
 capital structure of the Group consists of cash and cash   
 equivalents as disclosed in note 18; debt, which          
 includes the borrowings disclosed in note 19; and equity   
 attributable to equity shareholders of the Parent,        
 comprising issued share capital, reserves and retained    
 earnings as disclosed in the consolidated statement of    
 changes in equity.                                        
                                                           
 Financial management                                      
                                                                     
 The Group continues to manage its interest rate and       
 foreign currency exposure in accordance with the          
 policies set out below. The Group's financial             
 instruments comprise cash, borrowings, receivables and    
 payables that are used to finance the Group's             
 operations. The Group also uses derivatives, principally   
 interest rate swaps, forward currency contracts and       
 cross currency swaps, to manage interest rate and         
 currency risks arising from the Group's operations. The   
 Group does not trade in financial instruments. The        
 Group's treasury policies are designed to mitigate the    
 impact of fluctuations in interest rates and exchange     
 rates and to manage the Group's financial risks. The      
 Board approves any changes to the policies.               
                                                                         
 
 
 Liquidity risk                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                      
 The Group finances its borrowings from a number of sources including the bank, the public and the private placement markets. The Group has developed long-term relationships with a number of financial counterparties with the balance sheet strength and credit quality to provide credit facilities as required. The Group seeks to avoid a concentration of debt maturities in any one period to spread its refinancing risk.  
 
 
20 Derivative financial instruments (continued) 
 
                                                                                                             2014     2013         
                                                                                                             Current  Non-current  Current      Non-current  Current  Non-current  Current      Non-current  
 Derivative financial instruments                                                                            assets   assets       liabilities  liabilities  assets   assets       liabilities  liabilities  
 £m                                                                                                          £m       £m           £m           £m           £m       £m           £m           
                                                                                                                                                                                                             
 Interest rate swaps:                                                                                                                                                                                        
 Fair value hedges (1)                                                                                       11       34           -            -            2        41           -            (1)          
 Not in a hedging relationship (2)                                                                           -        -            (1)          -            -        -            (1)          -            
                                                                                                                                                                                                             
 Other derivatives:                                                                                                                                                                                          
 Forward currency contracts and cross currency swaps                                                         4        16           (3)          (1)          5        21           (2)          -            
 Others                                                                                                      1        -            -            -            -        1            -            -            
                                                                                                                                                                                                             
 Total