REG - Hilton Food Grp Plc - A year of investment for future growth <Origin Href="QuoteRef">HFG.L</Origin> - Part 3
25/03/2015 07:00
- Part 3: For the preceding part double click ID:nRSY3467Ib
land and buildings with a net book amount of £1,453,000 (2013: £1,724,000) and plant and machinery with a net book amount of £nil (2013: £nil).
9 Intangible assets
Product licences Computer software Goodwill Total
Group £'000 £'000 £'000 £'000
Cost
At 31 December 2012 7,549 4,327 836 12,712
Exchange adjustments 138 (12) - 126
Additions 1,146 126 - 1,272
At 29 December 2013 8,833 4,441 836 14,110
Accumulated amortisation
At 31 December 2012 7,488 3,367 - 10,855
Exchange adjustments 156 (30) - 126
Charge for the year 145 324 - 469
At 29 December 2013 7,789 3,661 - 11,450
Net book amount
At 31 December 2012 61 960 836 1,857
At 29 December 2013 1,044 780 836 2,660
Cost
At 30 December 2013 8,833 4,441 836 14,110
Exchange adjustments (977) (475) - (1,452)
Additions 11,449 150 - 11,599
At 28 December 2014 19,305 4,116 836 24,257
Accumulated amortisation
At 30 December 2013 7,789 3,661 - 11,450
Exchange adjustments (525) (414) - (939)
Charge for the year 892 307 - 1,199
At 28 December 2014 8,156 3,554 - 11,710
Net book amount
At 28 December 2014 11,149 562 836 12,547
Amortisation charges are included within administrative expenses in the income
statement.
10 Borrowings
2014 2013
Group £'000 £'000
Current
Bank borrowings 10,531 10,942
Finance lease liabilities 156 162
10,687 11,104
Non-current
Bank borrowings 30,304 16,031
Finance lease liabilities 2,269 2,585
32,573 18,616
Total borrowings 43,260 29,720
Due to the frequent re-pricing dates of the Group's loans, the fair value of current and non-current borrowings is approximate to their carrying amount.
The carrying amounts of the Group's borrowings are denominated in the following currencies:
2014 2013
Currency £'000 £'000
UK Pound 30,737 17,375
Euro 2,425 12,345
Swedish Krona 10,098 -
43,260 29,720
Borrowings are repayable in quarterly instalments by 2019. Interest on
borrowings in Sterling is charged at LIBOR plus 1.6% subject to interest rate
caps over £12m of borrowings where LIBOR is capped at 4.5%. Interest on
borrowings in Swedish Krona is charged at STIBOR plus 1.6% subject to interest
rate caps over SEK 75m of borrowings where STIBOR is capped at 3%.
Bank borrowings totalling £40,835,000 (2013: £26,973,000) are secured by fixed
and floating charges over the assets of the individual Group borrowers and
through joint and several guarantees from each active Group undertaking.
The Group has undrawn overdraft and loan borrowing facilities of £46.5m (2013:
£18.3m) which expire after one year.
The undiscounted contractual maturity profile of the Group's borrowings is
described in a note.
The minimum lease payments and present value of finance lease liabilities is
as follows:
Minimum lease payments Present value
2014 2013 2014 2013
Group £'000 £'000 £'000 £'000
No later than one year 329 358 156 162
Later than one year and no later than five years 1,398 1,457 2,269 2,585
Later than five years 1,732 2,237 - -
3,459 4,052 2,425 2,747
Future finance charges on finance leases (1,034) (1,305) - -
Present value of finance lease liabilities 2,425 2,747 2,425 2,747
Lease liabilities are effectively secured as the rights to the leased asset
revert to the lessor in the event of default. The fair value of the Group's
finance lease liabilities is £3,315,000 (2013: £3,840,000). The fair values
are based on cash flows discounted using the European Central Bank benchmark
main refinancing operations fixed interest rate of 0.05% (2013: 0.25%).
11 Cash generated from operations
2014 2013
Group £'000 £'000
Profit before income tax 25,188 24,872
Finance costs - net 874 902
Operating profit 26,062 25,774
Adjustments for non-cash items:
Share of post tax profits of joint venture (884) (464)
Depreciation of property, plant and equipment 14,437 15,101
Amortisation of intangible assets 1,199 469
Loss on disposal of non-current assets 7 -
Adjustment in respect of employee share schemes 255 83
Changes in working capital:
Inventories 424 (1,835)
Trade and other receivables (112) (15,983)
Prepaid expenses 592 191
Trade and other payables 3,947 17,025
Accrued expenses 1,699 1,427
Cash generated from operations 47,626 41,788
The parent company has no operating cash flows.
12 Related party transactions and ultimate controlling party
The Directors do not consider there to be one ultimate controlling party. The
companies noted below are all deemed to be related parties by way of common
Directors.
Sales made on an arm's length basis on normal credit terms to related parties
during the year were as follows:
2014 2013
Group £'000 £'000
Woolworths Limited and subsidiaries - recharge of joint venture costs 1,245 1,794
Amounts owing from related parties at the year end were as follows:
Owed from related parties
2014 2013
Group £'000 £'000
Woolworths Limited and subsidiaries 33 387
The Company's related party transactions with other Group companies during the year were as follows:
2014 2013
Company £'000 £'000
Hilton Foods Limited - dividend received 11,000 9,750
Hilton Foods Limited - interest expense 140 229
Hilton Foods UK Limited - payment for group relief 53 88
At the year-end £4,403,000 (2013: £7,225,000) was owed to Hilton Foods Limited and £53,000 (2013: £88,000) was owed by Hilton Foods UK Limited.
Details of key management compensation are given in a note.
This information is provided by RNS
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