REG - Ocean Wilsons Hldgs - Interim Management Statement <Origin Href="QuoteRef">OCN.L</Origin> - Part 2
19/08/2016 11:18
- Part 2: For the preceding part double click ID:nRSO1161Ha
US$'000 US$'000
Aggregate remuneration comprised:
Wages and salaries 55,787 69,137
Share based payment expense 1,649 1,824
Social security costs 10,353 10,637
Other pension costs 466 529
68,255 82,127
6Investment revenue
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Interest on bank deposits 2,918 4,348
Dividends from equity investments 1,973 2,172
Other interest 1,074 1,423
5,965 7,943
7 Other gains and losses
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
(Decrease)/increase in fair value of trading investments held at period end (8,274) 1,793
Profit on disposal of trading investments 945 1,628
(7,329) 3,421
Other gains and losses form part of the movement in trading investments.
8Finance costs
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Interest on bank overdrafts and loans 5,676 6,479
Exchange (gain)/loss on foreign currency borrowings (13,920) 13,811
Interest on obligations under finance leases 219 314
Other interest 173 -
(7,852) 20,604
9Taxation
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Current taxation
Brazilian taxation:
Corporation tax 12,379 14,558
Social contribution 4,988 5,897
Total current tax 17,367 20,455
Deferred tax
(Credit)/charge for the period in respect of deferred tax liabilities (17,367) 14,230
Charge/(credit) for the period in respect of deferred tax assets 17,219 (13,971)
Total deferred tax (148) 259
Total taxation 17,219 20,714
Brazilian corporation tax is calculated at 25% (2015: 25%) of the assessable
profit for the year.
Brazilian social contribution tax is calculated at 9% (2015: 9%) of the
assessable profit for the year.
At the present time, no income, profit, capital or capital gains taxes are
levied in Bermuda and accordingly, no provision for such taxes has been
recorded by the company. In the event that such taxes are levied, the company
has received an undertaking from the Bermuda Government exempting it from all
such taxes until 31 March 2035.
10Dividends
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Amounts recognised as distributions to equity holders in the period:
Final dividend paid for the year ended 31 December 2015 of 63.0c (2014: 63.0c) per share 22,279 22,279
11Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Earnings:
Earnings for the purposes of basic earnings per share being net profit attributable to equity holders of the parent 19,808 11,953
Number of shares:
Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share 35,363,040 35,363,040
12 Property, plant and equipment
During the period, the Group spent approximately US$74.0 million mainly on
vessel construction and terminal equipment.
At 30 June 2016, the Group had entered into contractual commitments for the
acquisition of property, plant and equipment amounting to US$13.6 million.
13 Investments
Unaudited Audited
six months to year to
30 June 31 December
2016 2015
US$'000 US$'000
Trading investments
At 1 January 276,878 260,491
Additions, at cost 14,314 75,558
Disposals, at market value (29,620) (57,783)
Decrease in fair value of trading investments held at period end (8,274) (4,396)
Profit on disposal of trading investments 945 3,008
At period end 254,243 276,878
Ocean Wilsons (Investments) Limited Portfolio 230,243 236,155
Wilson Sons Limited 24,000 40,723
Trading investments held at fair value at period end 254,243 276,878
Wilson Sons Limited
The Wilson Sons Limited investments are held and managed separately from the
Ocean Wilsons (Investments) Limited Portfolio and consist of US Dollar
denominated depository notes.
Ocean Wilsons (Investments) Limited Portfolio
The Group has not designated any financial assets that are not classified as
trading investments as financial assets at fair value through profit or loss.
Trading investments above represent investments in listed equity securities,
funds and unquoted equities that present the Group with opportunity for return
through dividend income and capital appreciation.
Included in trading investments are open ended funds whose shares may not be
listed on a recognised stock exchange but are redeemable for cash at the
current net asset value at the option of the company. They have no fixed
maturity or coupon rate. The fair values of these securities are based on
quoted market prices where available. Where quoted market prices are not
available, fair values are determined using various valuation techniques that
include inputs for the asset or liability that are not based in observable
market data (unobservable inputs).
14 Trade and other receivables
Unaudited Audited
period ended year ended
30 June 31 December
2016 2015
US$'000 US$'000
Trade and other receivables
Amount receivable for the sale of services 53,485 48,163
Allowance for doubtful debts (1,232) (846)
52,253 47,317
Income taxation recoverable 7,651 5,732
Other recoverable taxes and levies 31,414 25,340
Loans to related parties 28,698 28,392
Prepayments 6,018 11,360
Other 5,825 10,168
131,859 128,309
Total current 85,155 83,981
Total non-current 46,704 44,328
131,859 128,309
Non-current trade receivables relate to: recoverable taxes with maturity dates
in excess of one year, which comprise mainly PIS, COFINS, ISS and INSS,
customers with maturities over one year. There are no indicators of impairment
related to these receivables.
Included in the Group's trade receivable balances are debtors with a carrying
amount of US$11.9 million (2015: US$9.0 million) which are past due but not
impaired at the reporting date for which the Group has not provided as there
has not been a change in credit quality and the Group believes the amounts are
still recoverable.
The Group does not hold any collateral over these balances.
Unaudited Audited
period ended year ended
30 June 31 December
2016 2015
Ageing of past due but not impaired trade receivables US$'000 US$'000
From 0 - 30 days 7,421 6,004
From 31 - 90 days 2,347 1,491
From 91 - 180 days 2,140 1,523
more than 180 days - -
Total 11,908 9,018
Included in the Group's allowance for doubtful debts are individually impaired
trade receivables with a balance of US$1.2 million that are aged greater than
180 days. The impairment recognised represents the difference between the
carrying amount of these trade receivables and the present value of the
expected settlement proceeds. The Group does not hold any collateral over
these balances.
Unaudited Unaudited
period ended period ended
30 June 30 June
2016 2015
Ageing of impaired trade receivables US$'000 US$'000
From 0 - 30 days - -
From 31 - 90 days - -
From 91 - 180 days - -
more than 180 days 1,232 846
Total 1,232 846
In determining recoverability of trade receivables, the Group considers any
change in the credit quality of the trade receivable from the date credit was
initially granted up to the reporting date. The concentration of credit risk
is limited due to the customer base being large and unrelated. The directors
believe that there is no further credit provision required in excess of the
allowance for doubtful debts.
The directors consider that the carrying amount of trade and other receivables
approximates their fair value.
15 Bank loans and overdrafts
Unaudited Audited
period ended year ended
30 June 31December
2016 2015
Annual Interest rate US$'000 US$'000
Secured borrowings
BNDES - FMM linked to US$ (1) 2.07% to 6.00% 176,149 184,083
BNDES Real 7.50% - 9.69% 27,212 23,232
BNDES - linked to US$ 5.07% - 5.36% 6,155 7,239
BNDES - FMM Real (1) 8.90% - 11.21% 1,958 1,684
BNDES - FINAME Real 3.50% - 13.40% 1,306 1,952
Total BNDES 212,780 218,190
Banco do Brasil - FMM linked to US$ 2.00% - 3.00% 78,579 75,387
IFC - US$ 5.25% 53,778 58,971
China Construction Bank - US$ 4.36% 19,035 -
Eximbank - US$ 2.56% 6,319 7,356
Finimp - US$ 4.65% 2,338 3,503
IFC - $Real (4) 14.09% 211 348
Total others 160,260 145,565
Total borrowings 373,040 363,755
(1) As an agent of Fundo da Marinha Mercante's (FMM), BNDES finances the construction of tugboats and shipyard facilities.
Unaudited Audited
Period ended Year ended
30 June 31 December
2016 2015
US$'000 US$'000
The borrowings are repayable as follows:
On demand or within one year 49,744 41,490
In the second year 47,831 40,231
In the third to fifth years inclusive 107,409 107,996
After five years 168,056 174,038
Total borrowings 373,040 363,755
Amounts due for settlement within 12 months 49,744 41,490
Amounts due for settlement after 12 months 323,296 322,265
Analysis of borrowings by currency:
$Real
linked to
$Real US Dollars US Dollars Total
US$'000 US$'000 US$'000 US$'000
30 June 2016 (unaudited)
Bank loans 30,687 260,883 81,470 373,040
Total 30,687 260,883 81,470 373,040
31 December 2015 (audited)
Bank loans 27,216 266,709 69,830 363,755
Total 27,216 266,709 69,830 363,755
Guarantees
Loans with BNDES rely on a corporate guarantee from Wilson Sons de
Administração e Comércio Ltda. For some contracts, the corporate guarantee is
additional to: (i) pledge of the respective financed tugboat, (ii) lien of
logistics and port operations equipment financed.
Loans with BB rely on a corporate guarantee from Wilson, Sons de Administração
e Comércio Ltda. and pledge of the respective financed tugboat.
The loans that Tecon Salvador holds with IFC are guaranteed by shares of the
company, projects' cash flows, equipment and buildings.
The loan with "The Export-Import Bank of China" is guaranteed by a "Standby
Letter of Credit" issued for Tecon Rio Grande by Banco Itaú BBA S.A., with the
financing bank as beneficiary, as counter-guarantee, Tecon Rio Grande pledged
the equipment funded by "The Export-Import Bank of China" to Banco Itaú BBA
S.A.
Undrawn credit facilities
At 30 June 2016, the Group had available US$49.8 million of undrawn borrowing
facilities. For each disbursement, there is a set of precedent conditions that
must be satisfied.
Fair value
Management estimates the fair value of the Group's borrowings as follows:
Unaudited Audited
30 June 31 December
2016 2015
US$'000 US$'000
Bank loans
BNDES 212,780 218,190
Banco do Brasil 78,579 59,319
IFC 53,989 75,387
CCB 19,035 -
Eximbank 6,319 7,356
Finimp 2,338 3,503
Total 373,040 363,755
16 Joint ventures
The Group holds the following significant interests in joint operations and
joint ventures at the end of the reporting period:
Proportion of ownership interest
Place of
incorporation 30 June 30 June
and operation 2016 2015
Towage
Consórcio de Rebocadores Barra de Coqueiros (3) Brazil 29.13% 29.13%
Consórcio de Rebocadores Baia de São Marcos (3) Brazil 29.13% 29.13%
Logistics
Porto Campinas, Logística e Intermodal Ltda (3) Brazil 29.13% 29.13%
Offshore
Wilson, Sons Ultratug Participações S.A. (1) Brazil 29.13% 29.13%
Atlantic Offshore S.A. (2) Panama 29.13% 29.13%
(1) Wilson, Sons Ultratug Participações S.A. controls Wilson, Sons
Offshore S.A. and Magallanes Navegação Brasileira S.A. These latter two
companies are indirect joint ventures of the Company.
(2) Atlantic Offshore S.A. controls South Patagonia S.A. This company is
an indirect joint venture of Wilson Sons Limited.
(3) Joint Operations.
The Group's interests in joint ventures are equity accounted.
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Revenue 63,162 72,235
Raw materials and consumable used (3,454) (2,532)
Employee benefits expense (18,812) (22,084)
Depreciation and amortisation expenses (17,371) (17,618)
Other operating expenses (7,798) (7,776)
Loss on disposal of property, plant and equipment (2,136) (221)
Profits from operating activities 13,591 22,004
Finance income 887 2,486
Finance costs (10,872) (8,858)
Foreign exchange gains/(losses) on monetary items 10,225 (10,423)
Profit before tax 13,831 5,209
Income tax expense (8,069) (1,024)
Profit for the period 5,762 4,185
Participation (before non-controlling interests) 50% 50%
Equity result 2,881 2,093
Unaudited Audited
Period ended Year ended
30 June 31 December
2016 2015
US$'000 US$'000
Property, plant and equipment 674,110 666,656
Long-term investment 2,041 2,041
Other current assets 2,964 2,470
Trade and other receivables 37,689 32,415
Cash and cash equivalents 16,828 21,011
Total assets 733,632 724,593
Bank overdrafts and loans 538,136 547,550
Other non-current liabilities 26,806 21,819
Trade and other payables 89,903 81,126
Equity 78,787 74,098
Total liabilities 733,632 724,593
Guarantees
Wilson Sons Offshore's loan agreements with BNDES are guaranteed by a lien on
the financed supply vessels, and in the majority of the contracts, a corporate
guarantee from both Wilson Sons Adminisração e Comércio and Remolcadores
Ultratug Ltda, each guaranteeing 50% of its subsidiary's debt balance with
BNDES.
Magallanes Navegação Brasileira's loan agreement with Banco do Brasil is
guaranteed by a lien on the financed supply vessels. The security package also
includes a standby letter of credit issued by Banco de Crédito e Inversiones -
Chile for part of the debt balance, assignment of Petrobras' long-term
contracts and a corporate guarantee issued by Inversiones Magallanes Ltda -
Chile. A cash reserve account, accounted for under long term investments,
funded with US$2.0 million should be maintained until full repayment of the
loan.
The loan agreement Atlantic Offshore has with Deutsche Verkehrs-Bank "DVB" and
Norddeutsche Landesbank Girozentrale "Nord/LB" for the financing of the
offshore support vessel "Pardela" is guaranteed by a pledge on the vessel, the
shares of Atlantic Offshore and a corporate guarantee for half of the credit
from Wilson Sons de Administração e Comércio. Remolcadores Ultratug LTDA which
is the partner in the business, guarantee the other half of the loan.
Covenants
Annually, the joint venture Magallanes Navegação Brasileira S.A. has to comply
with specific financial covenants. As at 31 December 2015, the company was in
compliance with all clauses in the loans contracts.
Atlantic Offshore has to comply with a series of covenants in its two loan
agreements with Deutsche Verkehrs-Bank "DVB". On 28 July 2016 Atlantic
Offshore received a Temporary Waiver of non-compliance with Debt Service
Coverage Ratio for both Atlantic Offshore facilities for the period 31
December 2015 to 31 March 2017.
Provisions for tax, labour and civil risks
In the normal course of business in Brazil, the Group remains exposed to
numerous local legal claims. It is the Group's policy to vigorously contest
such claims, many of which appear to have little substance in merit, and to
manage such claims through its legal counsel.
In addition to the cases for which the Group has made provision, there are
other tax, civil and labour disputes amounting to US$13.5 million (2015:
US$9.7 million), whose probability of loss was estimated by the legal counsel
as possible.
Unaudited Audited
Period ended Year ended
30 June 31 December
2016 2015
US$'000 US$'000
Civil cases - 1
Tax cases 9,727 7,600
Labour claims 3,739 2,089
Total 13,466 9,690
17 Acquistion of non-controlling interest
On 2 February 2016, the Wilson Sons Group, through its subsidiaries, completed
the acquisition of the 7.5% non-controlling interest in Tecon Salvador S.A for
consideration of US$4.73 million from Intermaritima Terminais Ltda. The
consideration included US$1.88 million in cash and the settlement of US$2.85
million in debt. The transaction also includes an additional US$0.75 million
that is conditional upon future contractual events. Following completion of
the transaction the Wilson Sons Group holds 100% of the shares of Tecon
Salvador S.A. and the Ocean Wilsons Holdings Group has a 58.25% effective
interest.
The following amounts have been recognised in equity
Movement attributable to equity holders of parent 2,988
Movement attributable to non-controlling interest 2,411
18 Notes to the cash flow statement
Unaudited Unaudited
six months to six months to
30 June 30 June
2016 2015
US$'000 US$'000
Reconciliation from profit before tax to net cash from operating activities
Profit before tax 57,078 39,864
Share of joint venture results (2,881) (2,093)
Investment revenues (5,965) (7,943)
Other gains/(losses) 7,329 (3,421)
Finance costs (7,852) 20,604
Exchange (losses)/gains on monetary items (3,143) 6,481
Operating profit 44,566 53,492
Adjustments for:
Depreciation of property, plant and equipment 21,767 25,912
Amortisation of intangible assets 2,638 2,992
Share based payment expense 1,649 1,684
Loss on disposal of property, plant and equipment (67) (141)
Increase/(decrease) in provisions 3,679 (927)
Operating cash flows before movements in working capital 74,232 83,012
Increase in inventories (3,217) (2,082)
(Increase)/decrease in receivables (14,194) 12,705
Increase in payables 13,726 13,497
(Increase)/decrease in other non-current assets (2,474) 491
Cash generated by operations 68,073 107,623
Income taxes paid (13,640) (10,830)
Interest paid (6,178) (7,645)
Net cash from operating activities 48,255 89,148
19 Commitments
At 30 June 2016, the Group has twenty-five outstanding commitment agreements
with respect to twenty eight separate Limited Partnerships. These commitments
relate to capital subscription agreements entered into by Ocean Wilsons
(Investments) Limited.
The details of these commitments are as follows:
Unaudited Audited
Outstanding at Outstanding at
30 June 31 December
Commitment 2016 2015
$'000 US$'000 US$'000
Expiry date
31December 2016 3,000 68 68
22 February 2017 4,994 124 122
05 December 2017 5,000 531 575
30 March 2018 5,000 830 855
4 June 2018 5,000 1,468 1,468
18July 2018 5,000 698 700
21December 2018 5,000 2 185
31December 2018 4,650 208 279
22 November 2019 5,000 550 550
08 December 2019 5,000 206 427
31December 2019 3,000 90 90
31January 2020 4,500 148 288
18December 2021 5,000 448 916
17 February 2022 3,000 690 869
30 April 2022 7,500 2,919 3,781
11July 2022 4,963 2,797 2,833
01February 2023 5,000 400 500
28 March 2023 5,000 1,837 3,578
01April 2023 5,000 2,716 2,259
05 June 2023 3,200 1,697 3,577
22 August 2023 5,000 822 921
21August 2024 5,005 2,679 1,892
12March 2025 2,954 1,934 1,800
11April 2029 3,000 1,260 1,410
23 June 2025 1,800 1,584 465
14July 2025 2,500 2,244 2,500
19 October 2030 500 390 -
To be confirmed 3,500 3,500 -
Total 118,066 32,840 32,908
20 Related party transactions
Transactions between this company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Transactions between the group and its associates, joint ventures and others
investments are disclosed below.
Dividends received/ Amounts paid/
Revenue of services Cost of services
Unaudited Unaudited Unaudited Unaudited
30 June 30 June 30 June 30 June
2016 2015 2016 2015
US$'000 US$'000 US$'000 US$'000
Joint ventures
1. Allink Transportes Internacionais Limitada - 17 (24) -
2. Consórcio de Rebocadores Barra de Coqueiros - 138 - -
3. Consórcio de Rebocadores Baía de São Marcos 333 5 (5) -
4. Wilson Sons Ultratug 9,021 8,221 - -
5. Atlantic Offshore - - - -
Others
6. Hanseatic Asset Management LBG - - (1,214) (1,268)
7. Gouvêa Vieira Advogados - - (20) (45)
8. CMMR Intermediacao Comercial Limitada - - (85) (105)
9. Jofran Services - - (87) (87)
Amounts owed Amounts owed
by related parties to related parties
Unaudited Unaudited Unaudited Unaudited
30 June 30 June 30 June 30 June
2016 2015 2016 2015
US$'000 US$'000 US$'000 US$'000
Joint ventures
1. Allink Transportes Internacionais Limitada 2 3 - -
2. Consórcio de Rebocadores Barra de Coqueiros 148 195 - -
3. Consórcio de Rebocadores Baía de São Marcos 2,370 2,013 - -
4. Wilson Sons Ultratug 3,227 - - (8,497)
5. Atlantic Offshore 8,857 - - -
Others
6. Hanseatic Asset Management LBG - - (224) (245)
7. Gouvêa Vieira Advogados - - - -
8. CMMR Intermediacao Comercial Limitada - - - -
9. Jofran Services - - - -
1. Mr A C Baião is a shareholder and Director of Allink Transportes
Internacionais Limitada. Allink Transportes Internacionais Limitada is 50%
owned by the Group and rents office space from the Group.
6. Mr W H Salomon is Chairman of Hanseatic Asset Management LBG. Fees
were paid to Hanseatic Asset Management LBG for acting as investment managers
of the Group's investment portfolio and administration services.
7. Mr J F Gouvêa Vieira is a partner in the law firm Gouvêa Vieira
Advogados. Fees were paid to Gouvêa Vieira Advogados for legal services.
8. Mr C M Marote is a shareholder and Director of CMMR Intermediacao
Comercial Limitada. Fees were paid to CMMR Intermediacao Comercial Limitada
for consultancy services.
9. Mr J F Gouvêa Vieira is a Director of Jofran Services. Directors'
fees and consultancy fees were paid to Jofran Services.
21 Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be
able to continue as a going concern. The capital structure of the Group
consists of debt, which includes the borrowings disclosed in note 15, cash and
cash equivalents and equity attributable to equity holders of the parent
comprising issued capital, reserves and retained earnings and the consolidated
statement of changes in equity.
The Group borrows to fund capital projects and looks to cash flow from these
projects to meet repayments. Working capital is funded through cash generated
by operating revenues.
Externally imposed capital requirement
The Group is not subject to externally imposed capital requirements.
Financial risk management objectives
The Group's Corporate Treasury function provides services to the business,
co-ordinates access to domestic and international financial markets and
manages the financial risks relating to the operations of the Group through
internal reports. These risks include market risk, (including currency risk,
interest rate risk and price risk) credit risk and liquidity risk.
The Group may use derivative financial instruments to hedge these risk
exposures, with Board approval. The Group does not enter into trading
financial instruments, including derivative financial instruments for
speculative purposes.
Credit risk
The Group's principal financial assets are cash, trade and other receivables
and trading investments. The Group's credit risk is primarily attributable to
its bank balances, trade receivables and investments. The amounts presented as
receivables in the balance sheet are net of allowances for doubtful
receivables as outlined above.
The credit risk on liquid funds is limited because the counterparties are
banks with high credit-ratings assigned by international credit-rating
agencies. The credit risk on investments held for trading is limited because
the counterparties with whom the Group transacts are regulated institutions or
banks with high credit ratings. The Company's appointed investment manager,
Hanseatic Asset Management LBG, evaluates the credit risk on trading
investments prior to and during the investment period.
The Group has no significant concentration of credit risk. Ongoing credit
evaluation is performed on the financial condition of accounts receivable.
Market risk
The Group's activities expose it primarily to the financial risks of changes
in foreign currency exchange rates and interest rates.
Foreign currency risk management
The Group undertakes certain transactions denominated or linked to foreign
currencies and therefore exposures to exchange rate fluctuations arise. The
Group operates principally in Brazil with a substantial proportion of the
Group's revenue, expenses, assets and liabilities denominated in the Brazilian
Real. Due to the cost of hedging the Brazilian Real, the Group does not
normally hedge its net exposure to the Brazilian Real as the Board does not
consider it economically viable.
Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group borrow
funds at both fixed and floating interest rates.
The Group borrows from the BNDES (Banco Nacional de Desenvolvimento Econômico
e Social) and Banco do Brasil to finance vessel construction. These loans are
fixed interest rates loans linked to the US Dollar. Due to the favourable
rates offered by these institutions, in the Group's opinion, there is minimal
market interest rate risk.
The Group's strategy for managing interest rate risk is to maintain a balanced
portfolio of fixed and floating interest rates in order to balance both cost
and volatility. The Group may use derivative instruments to reduce cash flow
interest rate risk attributable to interest rate volatility.
Market price sensitivity
The Group is exposed to equity price risks arising from equity trading
investments.
The trading investments represent investments in listed equity securities,
funds and unquoted equities that provide the Group with opportunities for
return through dividend income and trading gains. They have no fixed maturity
or coupon rate. The fair values of these securities are based on quoted market
prices where available.
By the nature of its activities, the Group's investments are exposed to market
price fluctuations. However, the portfolio as a whole does not correlate
exactly to any stock exchange index, as it is invested in a diversified range
of markets. The investment manager and the Board monitor the portfolio
valuation on a regular basis and consideration is given to hedging the
portfolio against large market movements.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in a financial loss to the Group. The Group
has adopted a policy of only dealing with creditworthy counterparties as a
means of mitigating the risk of financial loss from defaults.
The Group's sales policy is subordinated to the credit sales rules set by
management, which seeks to mitigate any loss from customers' delinquency.
Trade receivables consist of a large number of customers. Ongoing credit
evaluation is performed on the financial condition of accounts receivable.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board.
The Group manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities.
The Group has access to financing facilities, the total unused amount which is
US$49.8 million at the balance sheet date. The Group expects to meet its other
obligations from operating cash flows and proceeds of maturing financial
assets.
Fair value of financial instruments
The fair value of non-derivative financial assets traded on active liquid
markets are determined with reference to quoted market prices.
The carrying amounts of financial assets and financial liabilities recorded at
amortised cost in the financial statements approximate their fair value.
Company Contact
Keith Middleton 1 441 295 1309
Media
David Haggie 020 7562 4444
Haggie Partners LLP
Cantor Fitzgerald Europe 020 7894 7000
David Foreman, Will Goode - Corporate Finance
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Ocean Wilsons Holdings
See all newsREG - Ocean Wilsons Hldgs - Results of AGM held on 30 April 2025
AnnouncementREG - Ocean Wilsons Hldgs - Final Dividend 2025
AnnouncementREG - FTSE Russell TI Fluid Systems PLC Ocean Wilsons Hldgs - TI Fluid Systems
AnnouncementREG - Ocean Wilsons Hldgs - Dividend Declaration
AnnouncementREG - Ocean Wilsons Hldgs - Preliminary results for the year ended 31 Dec 2024
Announcement