Annual Report 2006 - Tamar European Industrial Fund

Notes to the Accounts
11. Trade and other receivables
(a) Non-current
Company Group
£’000 £’000
Due from subsidiary undertakings 143,554 -
Interest rate swap assets (see note 17) - 2,135
(b) Current
143,554 2,135
Accrued income - 325
Rents receivable (net of provision for bad debts) - 4,786
VAT recoverable - 1,490
Other debtors and prepayments 18 10,122
18 16,723
Rents receivable, which are generally due for settlement at the relevant quarter end, are recognised and carried at the
original invoice amount less an allowance for any uncollectable amounts. An estimate for doubtful debts is made when
collection of the full amount is no longer probable. Bad debts are written off when identified.
Included within amounts due from subsidiary undertakings are £65,864,000 of convertible bonds subscribed for by
the Company. Each bond has a par value of €25, carries a fixed interest rate of 3.67 per cent per annum and has a
maturity date of the 49th anniversary of the date of issuance.
12. Cash and cash equivalents
All cash balances were held in current accounts or with banks on short term deposits with an original maturity of three
months or less at the period end.
13. Trade and other payables Company Group
£’000 £’000
Rental income received in advance - 3,033
Trade payables - 2,008
Investment manager’s fee payable - 504
Tax (including VAT) payable - 1,471
Due to subsidiary undertakings 32,613 -
Other payables 311 13,601
32,924 20,617
The Company’s payment policy is to ensure settlement of supplier invoices in accordance with stated terms.
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Notes to the Accounts
14. Loans and borrowings
Company Group
£’000 £’000
Secured bank loans - 172,002
Terms and conditions of the Group’s outstanding loans and borrowings, all of which are secured over the property
assets to which they relate, were as follows:
Nominal
Interest Year of
Currency rate maturity £’000
Secured bank loans Euro 3.63% 2010-2011 133,307
Secured bank loans NOK 4.39% 2009-2011 38,695
The principal covenant relating to the loans included above requires a ratio of outstanding loan to
property market value of less than 85% is maintained.
15. Share capital and share premium account and reserves
172,002
Company and
Group
£’000
Authorised share capital
Ordinary Shares of nil par value each Unlimited
Issued share capital
140,000,000 Ordinary Shares of nil par value each, fully paid -
Share premium account
Received on the placing of Ordinary Shares 140,000
Less: issue costs (4,515)
135,485
Conversion to special distributable reserve (132,500)
Closing balance 2,985
Issued share capital and share premium account 2,985
The Royal Court of Guernsey confirmed the reduction of capital by way of a cancellation of the Company’s Share
Premium Account. The amount cancelled, being £132,500,000, has been credited as a distributable reserve
established in the Company’s books of account and shall be available to be used for all purposes permitted under
Guernsey law, including the buy back of shares and the payment of dividends.
Special distributable reserve
As noted above, the special distributable reserve was created by the cancellation of the Company’s Share Premium
Account. It is a distributable reserve to be used for all purposes permitted under Guernsey law, including the buy back
of shares and the payment of dividends.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial
statements of foreign operations.
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