At the balance sheet date the interest rate profile of the
Group's interest--bearing financial instruments was:
2014 2013
Notes GBP000 GBP000
-------------------------- ----- -------- --------
Fixed rate instruments
Financial liabilities (24,757) (29,442)
Variable rate instruments
Financial assets 8,111 2,301
Financial liabilities (15,865) (13,773)
Loan arrangement fees 253 553
Finance leases (4,689) (1,777)
-------------------------- ----- -------- --------
Net debt 16 (36,947) (42,138)
-------------------------- ----- -------- --------
The fixed rate borrowings above are shown after taking account
of an interest rate swap (see note 17 for details).
A change of 50 basis points (0.5%) in interest rates at the
balance sheet date would have decreased equity and profit or loss
by the amounts shown below. This calculation assumes that the
change occurred at the balance sheet date and had been applied to
risk exposures existing at that date.
This analysis assumes that all other variables, in particular
foreign currency rates, remain constant and considers the effect on
financial instruments with variable interest rates, financial
instruments at fair value through profit or loss. The analysis is
performed on the same basis for 31 March 2013.
2014 2013
Sensitivity analysis GBP000 GBP000
--------------------- ------ ------
Equity
Increase - -
Decrease 68 38
Profit or loss
Increase - -
Decrease 68 38
--------------------- ------ ------
f) Capital management
The Board's policy is to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain
future development of the business. The Group is dependent on the
continuing support of its bankers for working capital facilities
and so the Board's major objective is to keep borrowings within
these facilities.
The Board manages as capital its trading capital, which it
defines as its net assets plus net debt. Net debt is calculated as
total debt (bank overdrafts, loans and borrowing as shown in the
balance sheet), less cash and cash equivalents. The banking
facilities with our principal bank have covenants relating to
interest cover, cash flow cover and leverage, and our articles
currently permit borrowings (including letter of credit facilities)
to a maximum of four times equity.
Equity
--------------
2014 2013
Notes GBP000 GBP000
---------------------------------- ----- ------ ------
Net assets attributable to owners
of the Parent Company 53,512 51,888
Net debt 16 36,947 42,138
---------------------------------- ----- ------ ------
Trading capital 90,459 94,026
---------------------------------- ----- ------ ------
The main areas of capital management revolve around the
management of the components of working capital including
monitoring inventory turn, and months' production or cost of sales
outstanding, age of inventory, age of trade receivables, balance
sheet reforecasting, monthly profit and loss, weekly cash flow
forecasts and daily cash balances. Major investment decisions are
based on reviewing the expected future cash flows and all major
capital expenditure requires sign off by the Group Chief Executive
Officer and Group Chief Financial Officer. There were no major
changes in the Group's approach to capital management during the
year. A particular focus of the Group is leverage measured as the
ratio of net debt to pre-exceptional EBITDA which is measured on a
monthly basis.
27 Operating leases
Non-cancellable operating lease rentals are payable as
follows:
2014 2013
GBP000 GBP000
--------------------- ------ ------
Less than one year 3,921 4,340
Between one and five
years 8,737 9,844
More than five years 9,178 10,163
--------------------- ------ ------
21,836 24,347
--------------------- ------ ------
The Group leases a number of warehouse and factory facilities as
well as vehicles and office equipment under operating leases. The
leases of warehouse and factory facilities typically have an option
to renew at the end of the lease term and lease payments are
subject to five-yearly rent reviews.
One of the leased properties has been sublet by the Group. The
sub-lease has a period to run of more than five years. Sub-lease
payments of GBP303,000 (2013: GBP303,000) are expected to be
received during the financial year.
During the year GBP4,307,000 was recognised as an expense in the
income statement in respect of operating leases (2013:
GBP3,887,000).
28 Capital commitments
At 31 March 2014, the Group had outstanding authorised capital
commitments to purchase plant and equipment for GBP1,076,000 (2013:
GBP94,000).
29 Related parties
2014 2013
GBP000 GBP000
----------------------------- ------ ------
Sale of goods
AB Alrick - Hedlund 413 394
Hedlunds Pappers Industri AB 62 35
Festive Productions Ltd 57 56
Hedlund Import AB 8,186 7,915
----------------------------- ------ ------
8,718 8,400
----------------------------- ------ ------
Purchase of goods
AB Alrick - Hedlund 706 -
Hedlund Import AB 173 2,455
Festive Productions Ltd - 31
----------------------------- ------ ------
879 2,486
----------------------------- ------ ------
Receivables:
AB Alrick - Hedlund 11 -
Hedlunds Pappers Industri AB 1 17
Festive Productions Ltd - 36
----------------------------- ------ ------
Balance at 31 March 12 53
----------------------------- ------ ------
Payables:
Hedlund Import AB (436) (475)
----------------------------- ------ ------
Balance at 31 March (436) (475)
----------------------------- ------ ------
Identity of related parties and trading
Hedlund Import AB and AB Alrick - Hedlund are under the ultimate
control of the Hedlund family. Anders Hedlund is a Director of
Hedlunds Pappers Industri AB which is under the ultimate control of
the Hedlund family. Festive Productions Ltd is a subsidiary
undertaking of Malios AG, a company under the ultimate control of
the Hedlund family.
Phil Dutton, Non-Executive Director, is married to Judith
McKenna who was Executive Vice President of Strategy and
International Development at Walmart International and is now
Executive Vice President, Chief Development Officer of Walmart US.
Walmart are significant customers of the Group.
The above trading takes place in the ordinary course of business
and on normal commercial terms.
Other related party transactions
Directors of the Company and their immediate relatives have an
interest in 50% (2013: 50%) of the voting shares of the Company.
The shareholdings of Directors are shown in the Directors' report.
No other shares were issued to Directors during the year (2013:
nil).
Directors' remuneration
2014 2013
GBP000 GBP000
------------------------------------------- ------ ------
Remuneration 1,941 946
Pension contributions 71 59
Share-based payments relating to Directors
- LTIP 82 -
Employer national insurance contributions
on the above remuneration 242 130
------------------------------------------- ------ ------
2,336 1,135
------------------------------------------- ------ ------
30 Post balance sheet events
On 5 June 2014 the Company announced that through its business
in Europe ("IG Europe"), it has signed a contract to acquire the
trade and certain of the assets of Enper Giftwrap BV for
approximately EUR1.9 million with the majority of the purchase
price representing usable fixed assets and stock. Enper is a
gift-wrap manufacturer in the Netherlands servicing northern Europe
with sales of EUR5 million and this acquisition will allow IG
Europe to widen its customer base and further strengthen its market
position in a core product category.
Completion is expected to take place at the end of June
2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UGUWPMUPCGQG
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