REG - Hilton Food Grp Plc - Preliminary Results <Origin Href="QuoteRef">HFG.L</Origin> - Part 3

Hilton FoodAnnouncement

31/03/2016 07:05

- Part 3: For the preceding part double click  ID:nRSe5932Tb 

Borrowings                                                                                                                                                             
                                                                                                                                                           2015    2014    
 Group                                                                                                                                                     £'000   £'000   
 Current                                                                                                                                                                   
 Bank borrowings                                                                                                                                           11,562  10,531  
 Finance lease liabilities                                                                                                                                 166     156     
                                                                                                                                                           11,728  10,687  
 Non-current                                                                                                                                                               
 Bank borrowings                                                                                                                                           26,428  30,304  
 Finance lease liabilities                                                                                                                                 1,977   2,269   
                                                                                                                                                           28,405  32,573  
 Total borrowings                                                                                                                                          40,133  43,260  
                                                                                                                                                                           
 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:                                                               
                                                                                                                                                           2015    2014    
 Currency                                                                                                                                                  £'000   £'000   
 UK Pound                                                                                                                                                  25,080  30,737  
 Euro                                                                                                                                                      2,144   2,425   
 Swedish Krona                                                                                                                                             12,909  10,098  
                                                                                                                                                           40,133  43,260  
 
 
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 2.5%. 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 £37,989,000 (2014: £40,835,000) 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 £28.3m (2014:
£46.5m) 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  
                                                   2015                    2014           2015   2014   
 Group                                             £'000                   £'000          £'000  £'000  
 No later than one year                            317                     329            166    156    
 Later than one year and no later than five years  1,351                   1,398          1,977  2,269  
 Later than five years                             1,282                   1,732          -      -      
                                                   2,950                   3,459          2,143  2,425  
 Future finance charges on finance leases          (807)                   (1,034)        -      -      
 Present value of finance lease liabilities        2,143                   2,425          2,143  2,425  
 
 
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 £2,843,000 (2014: £3,315,000). The fair values
are based on cash flows discounted using the European Central Bank benchmark
main refinancing operations fixed interest rate of 0.05% (2014: 0.05%). 
 
 11 Cash generated from operations                                  
                                                  2015      2014    
 Group                                            £'000     £'000   
 Profit before income tax                         27,948    25,188  
 Finance costs - net                              1,051     874     
 Operating profit                                 28,999    26,062  
 Adjustments for non-cash items:                                    
 Share of post tax profits of joint venture       (1,222)   (884)   
 Depreciation of property, plant and equipment    16,884    14,437  
 Amortisation of intangible assets                2,479     1,199   
 Loss on disposal of non-current assets           75        7       
 Adjustment in respect of employee share schemes  750       255     
 Changes in working capital:                                        
 Inventories                                      3,126     424     
 Trade and other receivables                      16,283    (112)   
 Prepaid expenses                                 (744)     592     
 Trade and other payables                         (15,150)  3,947   
 Accrued expenses                                 (520)     1,699   
 Cash generated from operations                   50,960    47,626  
                                                                    
 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: 
 
                                                                                                                                                                                                                  
                                                                                                                                                                                                          2015    2014    
 Group                                                                                                                                                                                                    £'000   £'000   
 Woolworths Limited and subsidiaries - recharge of joint venture costs                                                                                                                                    1,581   1,245   
                                                                                                                                                                                                                          
                                                                                                                                                                                                                          
 Amounts owing from related parties at the year end were as follows:                                                                                                         
                                                                                                                                                                               Owed from related parties  
                                                                                                                                                                                                          2015    2014    
 Group                                                                                                                                                                                                    £'000   £'000   
 Woolworths Limited and subsidiaries                                                                                                                                                                      605     33      
                                                                                                                                                                                                                          
                                                                                                                                                                                                                          
 The Company's related party transactions with other Group companies during the year were as follows:                                                                        
                                                                                                                                                                                                          2015    2014    
 Company                                                                                                                                                                                                  £'000   £'000   
 Hilton Foods Limited - dividend received                                                                                                                                                                 13,600  11,000  
 Hilton Foods Limited - interest expense                                                                                                                                                                  56      140     
 Hilton Foods UK Limited - payment for group relief                                                                                                                                                       30      53      
                                                                                                                                                                                                                          
 At the year end £439,000 was owed by Hilton Foods Limited (2014: £4,403,000 owed to Hilton Foods Limited) and £31,000 (2014: £53,000) was owed by Hilton Foods UK Limited.  
                                                                                                                                                                                                                          
 Details of key management compensation are given in a note.                                                                                                                 
                                                                                                                                                                                                                          
 
 
This information is provided by RNS
The company news service from the London Stock Exchange