REG - Morgan Adv Mat PLC - Half-Year Results <Origin Href="QuoteRef">MGAMM.L</Origin> - Part 5
27/07/2016 07:06
- Part 5: For the preceding part double click ID:nRSa3166Fd
(92.9) (84.7) (94.9) (94.9) (80.2) (80.2)
Obligations under finance leases (1.0) (1.0) (1.1) (1.1) (1.0) (1.0)
Trade and other payables (96.4) (96.4) (91.3) (91.3) (96.1) (96.1)
Loans and receivables 182.6 182.6 167.3 167.3 155.9 155.9
Cash and cash equivalents 57.2 57.2 52.4 52.4 49.8 49.8
(155.4) (160.6) (141.1) (155.1) (156.2) (168.6)
Available-for-sale financial instruments
Available-for-sale financial assets 0.6 0.6 1.2 1.2 0.5 0.5
Derivatives and other items at fair value
Forward exchange contracts used for hedging (11.0) (11.0) 2.5 2.5 0.5 0.5
Cross currency swaps (6.0) (6.0) 0.6 0.6 (0.8) (0.8)
(171.8) (177.0) (136.8) (150.8) (156.0) (168.4)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
9. Financial risk management continued
The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the preceding table.
Equity securities
Fair value is based on quoted market prices at the balance sheet date.
Derivatives
Forward exchange contracts are marked to market either using listed market prices or by discounting the contractual forward price and deducting the current spot rate.
Interest-bearing loans and borrowings
Fair value is calculated based on discounted expected future principal and interest cash flows. The interest rates used to determine the fair value of loans and borrowings are 1.3-2.8% (30 June 2015: 1.7-3.7%; 31 December 2015: 1.6-3.5%).
Finance lease liabilities
The fair value is estimated as the present value of future cash flows, discounted at market interest rates for homogeneous lease agreements. The estimated fair values reflect changes in interest rates.
Trade and other receivables/payables
For receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables/payables are discounted to determine the fair value.
Cash and cash equivalents, trade and other payables and loans and receivables
The Group has disclosed the fair value of cash and cash equivalents, current loans and receivables and current payables at their carrying amount, given their notional amount is deemed to be their fair value.
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
30 June 2016 30 June 2015
Level 1 Level 2 Total Level 1 Level 2 Total
£m £m £m £m £m £m
Available-for-sale financial assets 0.6 - 0.6 1.2 - 1.2
Derivative financial assets - 1.2 1.2 - 4.0 4.0
0.6 1.2 1.8 1.2 4.0 5.2
Derivative financial liabilities - (18.2) (18.2) - (0.9) (0.9)
31 December 2015
Level 1 Level 2 Total
£m £m £m
Available-for-sale financial assets 0.5 - 0.5
Derivative financial assets - 2.0 2.0
0.5 2.0 2.5
Derivative financial liabilities - (2.3) (2.3)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
9. Financial risk management continued
The table below analyses financial instruments disclosed at fair value, by valuation method.
30 June 2016 30 June 2015
Level 1 Level 2 Total Level 1 Level 2 Total
£m £m £m £m £m £m
4.32% Euro Senior Notes 2017 - (17.4) (17.4) - (15.1) (15.1)
6.12% US Dollar Senior Notes 2017 - (138.2) (138.2) - (119.6) (119.6)
6.26% US Dollar Senior Notes 2019 - (62.7) (62.7) - (52.8) (52.8)
Obligations under finance leases - (1.0) (1.0) - (1.1) (1.1)
- (219.3) (219.3) - (188.6) (188.6)
31 December 2015
Level 1 Level 2 Total
£m £m £m
4.32% Euro Senior Notes 2017 - (15.5) (15.5)
6.12% US Dollar Senior Notes 2017 - (125.5) (125.5)
6.26% US Dollar Senior Notes 2019 - (56.0) (56.0)
Obligations under finance leases - (1.0) (1.0)
- (198.0) (198.0)
There have been no transfers between level 1 and level 2 between 1 January 2015 and 30 June 2016 and there were no level 3 financial instruments between 1 January 2015 and 30 June 2016.
10. Related parties
The Company has related party relationships with its subsidiaries and its associates and with its Directors and executive officers.
Transactions with key management personnel
Details of transactions with key management personnel are described in note 26 of the Group's 2015 Annual Report.
Six months Six months Year
2016 2015 2015
Transactions with associate £m £m £m
Sales to associates - 0.1 0.3
Purchases from associate 1.0 0.9 1.5
Loan owed by associate 1.8 1.9 1.8
Trade receivables due from associate - 2.3 1.3
Trade payables due to associate 0.4 0.6 0.5
At 30 June 2016 the Group does not have any trade receivables owed by associates which have been fully provided for (30 June 2015 and 31 December 2015: £1.3 million).
Except as disclosed in the table above:
- There were no related party transactions during the period that have materially affected the financial position or the performance of the Group during the period; and
- There have been no changes in the nature of related party transactions as described in note 26 of the Group's 2015 Annual Report that could have a material effect on the financial position or performance of the Group during the period.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. Employee benefits
30 June 30 June 30 June 30 June 30 June
2016 2016 2016 2016 2016
UK USA Europe Rest of the World Total
Pension plans and employee benefits £m £m £m £m £m
Present value of unfunded defined benefit obligations - (9.4) (36.6) (2.3) (48.3)
Present value of funded defined benefit obligations (566.4) (169.6) (1.8) (15.7) (753.5)
Fair value of plan assets 399.7 116.7 0.4 13.6 530.4
Net obligations (166.7) (62.3) (38.0) (4.4) (271.4)
Movements in present value of defined benefit obligation
At 1 January 2016 (500.9) (178.9) (28.7) (14.9) (723.4)
Current service cost (1.1) - (0.3) (0.7) (2.1)
Interest cost (9.1) (4.0) (0.3) (0.2) (13.6)
Remeasurement losses (65.1) (15.1) (5.1) (0.2) (85.5)
Benefits paid 10.2 5.1 0.5 0.3 16.1
Contributions by members (0.4) - - - (0.4)
Settlements - 31.7 - - 31.7
Exchange adjustments - (17.8) (4.5) (2.3) (24.6)
At 30 June 2016 (566.4) (179.0) (38.4) (18.0) (801.8)
Movements in fair value of plan assets
At 1 January 2016 383.5 123.8 0.4 11.2 518.9
Interest on plan assets 7.0 2.8 - 0.2 10.0
Remeasurement gains 15.0 5.5 - - 20.5
Contributions by employer 4.6 5.4 0.4 0.5 10.9
Contributions by members 0.4 - - - 0.4
Benefits paid (10.2) (5.1) (0.5) (0.3) (16.1)
Administrative expenses (0.6) - - - (0.6)
Settlements - (27.7) - - (27.7)
Exchange adjustments - 12.0 0.1 2.0 14.1
At 30 June 2016 399.7 116.7 0.4 13.6 530.4
Principal actuarial assumptions at 30 June 2016 were: % % % %
Discount rate 2.80 3.80 1.30 2.10
Inflation (UK: RPI/CPI) 2.70/1.50 n/a 1.70 n/a
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. Employee benefits continued
30 June 30 June 30 June 30 June 30 June
2015 2015 2015 2015 2015
UK USA Europe Rest of the World Total
Pension plans and employee benefits £m £m £m £m £m
Present value of unfunded defined benefit obligations - (8.1) (25.7) (1.5) (35.3)
Present value of funded defined benefit obligations (506.7) (160.1) (1.7) (12.1) (680.6)
Fair value of plan assets 393.8 117.9 0.4 10.8 522.9
Net obligations (112.9) (50.3) (27.0) (2.8) (193.0)
Principal actuarial assumptions at 30 June 2015 were: % % % %
Discount rate 3.70 4.50 2.30 2.90
Inflation (UK: RPI/CPI) 3.10/1.90 n/a 1.70 n/a
31 December 31 December 31 December 31 December 31 December
2015 2015 2015 2015 2015
UK USA Europe Rest of the World Total
Pension plans and employee benefits £m £m £m £m £m
Present value of unfunded defined benefit obligations - (8.3) (27.2) (1.9) (37.4)
Present value of funded defined benefit obligations (500.9) (170.6) (1.5) (13.0) (686.0)
Fair value of plan assets 383.5 123.8 0.4 11.2 518.9
Net obligations (117.4) (55.1) (28.3) (3.7) (204.5)
Principal actuarial assumptions at 31 December 2015 were: % % % %
Discount rate 3.70 4.50 2.30 2.90
Inflation (UK: RPI/CPI) 3.00/1.80 n/a 1.70 n/a
This information is provided by RNS
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