REG - Unite Group PLC - Interim Results <Origin Href="QuoteRef">UTG.L</Origin> - Part 4

UniteAnnouncement

26/07/2016 07:06

- Part 4: For the preceding part double click  ID:nRSZ1864Fc 

13 fair value hierarchy. The fair
value of these fixed rate loans has been calculated by a third party expert
discounting estimated future cash flows on the basis of market expectation of
future interest rates. The fair value of these loans is £209.1 million (30
June 2015: £229.7 million). 
 
4.2 Interest rate swaps 
 
The Group uses interest rate swaps to manage the Group's exposure to interest
rate fluctuations. In accordance with the Group's treasury policy, the Group
does not hold or issue interest rate swaps for trading purposes and only holds
swaps which are considered to be commercially effective. 
 
The following table shows the fair value of interest rate swaps: 
 
                                    Unaudited      Unaudited      Year to       
                                    6 months to    6 months to    31 December   
                                    30 June 2016   30 June 2015   2015          
                                    £m             £m             £m            
 Current                            -              0.1            -             
 Non-current                        16.8           -              2.3           
 Fair value of interest rate swaps  16.8           0.1            2.3           
 
 
The fair values of interest rate swaps have been calculated by a third party
expert, discounting estimated future cash flows on the basis of market
expectations of future interest rates, representing Level 2 in the IFRS 13
fair value hierarchy. The IFRS 13 level categorisation relates to the extent
the fair value can be determined by reference to comparable market values. The
classifications range from level 1 where instruments are quoted on an active
market through to level 3 where the assumptions used to arrive at fair value
do not have comparable market data. 
 
4.3 Dividends 
 
During the 6 months to 30 June 2016, the Company declared and paid a final
dividend of £21.0 million (30 June 2015: £19.8 million). After the period end,
the Directors proposed an interim dividend of 6.0p per share (30 June 2015:
5.5p per share). No provision has been made in relation to this dividend. 
 
Independent review report to The UNITE Group plc 
 
Introduction 
 
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2016 which comprises the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated balance sheet, the
consolidated statement of changes in shareholders' equity, the consolidated
statement of cash flows and the related notes 1 to 4.3. We have read the other
information contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements. 
 
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Provided by the Independent Auditor of the Entity"
issued by the Auditing Practices Board.  Our work has been undertaken so that
we might state to the company those matters we are required to state to it in
an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our review work, for this report, or for the conclusions
we have formed. 
 
Directors' responsibilities 
 
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority. 
 
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting," as adopted by the European Union. 
 
Our responsibility 
 
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. 
 
Scope of review 
 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion. 
 
Conclusion 
 
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2016 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority. 
 
Deloitte LLP 
 
Chartered Accountants and Statutory Auditor 
 
London, UK 
 
26 July 2016 
 
Company information 
 
Registered office 
 
The Core
40 St Thomas Street
Bristol BS1 6JX 
 
Auditor 
 
Deloitte LLP 
 
2 New Street Square 
 
London EC4A 3BZ 
 
Registrars 
 
Computershare Investor Services PLC
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH 
 
Financial advisers and brokers 
 
J.P. Morgan Cazenove Limited
25 Bank Street
London E14 5JP 
 
Numis Securities Limited
10 Paternoster Square
London EC4M 7LT 
 
Financial PR 
 
Bell Pottinger
Holborn Gate
330 High Holborn
London WC1V 7QD 
 
Registered number 
 
3199160 
 
This information is provided by RNS
The company news service from the London Stock Exchange