REG - Hilton Food Grp Plc - Preliminary Results <Origin Href="QuoteRef">HFG.L</Origin> - Part 3
30/03/2017 07:06
- Part 3: For the preceding part double click ID:nRSd9216Ab
- 54
Reclassifications - 182 - 182
Disposals - (123) - (123)
At 3 January 2016 18,745 4,092 836 23,673
Accumulated amortisation
At 29 December 2014 8,156 3,554 - 11,710
Exchange adjustments (408) (109) - (517)
Charge for the year 2,142 337 - 2,479
Reclassifications - 51 - 51
Disposals - (123) - (123)
At 3 January 2016 9,890 3,710 - 13,600
Net book amount
At 29 December 2014 11,149 562 836 12,547
At 3 January 2016 8,855 382 836 10,073
Cost
At 4 January 2016 18,745 4,092 836 23,673
Exchange adjustments 1,756 (1,071) - 685
Additions - 647 - 647
Reclassifications (note 8) - (1,472) - (1,472)
Disposals (216) (1) - (217)
At 1 January 2017 20,285 2,195 836 23,316
Accumulated amortisation
At 4 January 2016 9,890 3,710 - 13,600
Exchange adjustments 1,288 (1,095) - 193
Charge for the year 2,241 207 - 2,448
Reclassifications (note 8) - (1,508) - (1,508)
Disposals - (1) - (1)
At 1 January 2017 13,419 1,313 - 14,732
Net book amount
At 1 January 2017 6,866 882 836 8,584
Amortisation charges are included within administrative expenses in the income
statement.
10 Borrowings
2016 2015
Group £'000 £'000
Current
Bank borrowings 9,348 11,562
Finance lease liabilities 219 166
9,567 11,728
Non-current
Bank borrowings 15,319 26,428
Finance lease liabilities 2,090 1,977
17,409 28,405
Total borrowings 26,976 40,133
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:
2016 2015
Currency £'000 £'000
UK Pound 15,500 25,080
Euro 2,309 2,144
Swedish Krona 9,167 12,909
26,976 40,133
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 £24,667,000 (2015: £37,990,000) 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 £99.2m (2015:
£28.3m) with the loan facilities expiring in 2022.
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
2016 2015 2016 2015
Group £'000 £'000 £'000 £'000
No later than one year 377 317 219 166
Later than one year and no later than five years 1,603 1,351 1,139 1,977
Later than five years 1,069 1,282 951 -
3,049 2,950 2,309 2,143
Future finance charges on finance leases (740) (807) - -
Present value of finance lease liabilities 2,309 2,143 2,309 2,143
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 £2,956,000 (2015: £2,843,000). The fair values
are based on cash flows discounted using the European Central Bank benchmark
main refinancing operations fixed interest rate of 0% (2015: 0.05%).
11 Cash generated from operations
2016 2015
Group £'000 £'000
Profit before income tax 33,209 27,948
Finance costs - net 1,115 1,051
Operating profit 34,324 28,999
Adjustments for non-cash items:
Share of post tax profits of joint venture (3,056) (1,222)
Depreciation of property, plant and equipment 17,258 16,884
Amortisation of intangible assets 2,448 2,479
Loss on disposal of non-current assets (75) 75
Adjustment in respect of employee share schemes 1,874 750
Changes in working capital:
Inventories (4,250) 3,126
Trade and other receivables (9,824) 16,283
Prepaid expenses (889) (744)
Trade and other payables 11,960 (15,150)
Accrued expenses 296 (520)
Cash generated from operations 50,066 50,960
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:
2016 2015
Group £'000 £'000
Hilton Food Solutions Limited 5,564 -
Woolworths Limited and subsidiaries - recharge of joint venture costs 1,010 1,581
Amounts owing from related parties at the year end were as follows:
Owed from related parties
2016 2015
Group £'000 £'000
Hilton Food Solutions Limited 978 -
Woolworths Limited and subsidiaries 69 605
The Company's related party transactions with other Group companies during the year were as follows:
2016 2015
Company £'000 £'000
Hilton Foods Limited - dividend received 9,625 13,600
Hilton Foods Limited - interest expense - 56
Hilton Foods UK Limited - payment for group relief 11 30
At the year end £1,902,000 was owed to Hilton Foods Limited (2015: £439,000 owed by Hilton Foods Limited) and £41,000 (2015: £30,000) 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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