Annual Report 2011 - Watercare

More documents

Recommendations

Info

Watercare Services Limited 2011 ANNUAL REPORT Notes to the financial statements (continued) for the year ended 30 June 2011 20. Borrowings (continued) group and Company Company 2011 2010 % % Interest rates at balance date: Related party term loan Average 5.13 4.80 Average including interest rate swaps 5.78 4.80 Medium-term notes Average 6.23 6.51 Average including interest rate swaps 5.98 7.89 Term loan Average 3.51 3.76 Average including interest rate swaps 6.85 6.78 Bank loan Average 3.61 4.27 Average including interest rate swaps 3.61 4.27 Commercial paper Average 2.76 3.09 Average including interest rate swaps 6.08 4.88 Total debt Average 5.15 5.24 Average including interest rate swaps 5.95 6.93 Lenders under the bank loans and holders of medium-term notes and short-term commercial paper, receive the benefit of the negative pledge undertaking from the group. This undertaking limits the extent to which the group can give security to lenders and requires the group to ensure that the following financial ratios are achieved at all times; • Total liabilities do not exceed 60 per cent of total tangible assets • Total liabilities plus total contingent liabilities do not exceed 65 per cent of total tangible assets • Shareholders’ funds are not less than $500 million • Earnings before interest, tax, depreciation and amortisation is greater than 1.75 times interest expense • Total tangible assets of the group are to be greater than 90 per cent of total tangible assets of the borrowing group The group complied with these financial covenant ratios during the years ended 30 June 2011 and 30 June 2010. The group has an agreement with Auckland Council under which Auckland Council guarantees repayment of certain of the group’s borrowings and obligations under interest rate swap agreements. The group has the following undrawn committed facilities available: group and Company Company 2011 2010 $000 $000 Bank overdraft facilities, expires on cancellation 4,542 554 Term loan facility, expires October 2016 50,000 - Revolving advances, expires May 2013 (2010: expires December 2011) 63,500 8,500 Commercial paper standby facility expires July 2012 (2010: expires December 2011) 200,000 150,000 2011 Financial Report PAGE 96 Total undrawn committed facilities 318,042 159,054 Commercial paper held by the group is represented by multiple issues that spread interest rate and maturity risk. As each issue matures the group replaces it with a new issue, if required. The provider of the commercial paper standby facility acts as a lender of last resort, should the group be unable to issue new commercial paper when it matures. The group’s treasury risk management policy requires standby facilities to be maintained to meet 50% of outstanding commercial paper and other uncommitted short-term debt repayable within 60 days (2010: the group’s treasury risk management policy required standby facilities to be maintained to meet 50% of commercial paper maturing within the next 60 days). The group complied with its treasury risk management policy during the years ended 30 June 2011 and 30 June 2010. Return to Contents page
Watercare Services Limited 2011 ANNUAL REPORT Notes to the financial statements (continued) for the year ended 30 June 2011 21. Financial Assets and Liabilities Categories of financial assets and liabilities The carrying amounts presented in the statement of financial position relate to the following categories of assets and liabilities: group and Company company 2011 2010 carrying amount Fair value Carrying amount Fair value $000 $000 $000 $000 FINANCIAL ASSETS – CURRENT Loans and receivables Cash and cash equivalents 32 32 - - Trade and other receivables 79,508 79,508 19,047 19,047 Short-term deposits - - 10,000 10,000 Fair value through profit or loss Derivative financial instruments 553 553 162 162 FINANCIAL ASSETS – NON CURRENT Fair value through profit or loss Derivative financial instruments 12,285 12,285 5,284 5,284 92,378 92,378 34,493 34,493 FINANCIAL LIABILITIES – CURRENT Amortised cost Trade and other payables 16,157 16,157 8,299 8,299 Accrued expenses* 63,031 63,031 33,017 33,017 Bank overdraft (unsecured) 558 558 446 446 Medium-term notes (unsecured) 50,000 51,244 - - Related party term loan (unsecured) 67,154 67,770 10,000 10,000 Commercial paper (unsecured) 124,141 124,450 99,225 99,554 Fair value through profit or loss Derivative financial instruments 3,174 3,174 1,026 1,026 FINANCIAL LIABILITIES – NON CURRENT Amortised cost Medium-term notes (unsecured) 400,000 423,156 300,000 314,191 Term loan (unsecured) 100,000 100,369 100,000 100,381 Bank loan (unsecured) 11,500 11,500 16,500 16,500 Related party term loan (unsecured) 476,104 481,084 - - Fair value through profit or loss Derivative financial instruments 59,110 59,110 40,298 40,298 * Excludes income received in advance of $13,995,878 (2010: nil) as it is not categorised as a financial liability. 1,370,929 1,401,603 608,811 623,712 The calculation of fair values for each category of financial assets and financial liabilities is explained below. The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting period. No reclassification of financial assets was made during the years ended 30 June 2011 or 30 June 2010. PAGE 97 2011 Financial Report Return to Contents page
Page 1 and 2:
Annual Report 2011 ANNUAL REPORT 20
Page 3 and 4:
Watercare Services Limited 2011 ANN
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48: Watercare Services Limited 2011 ANN
Page 61 and 62: financial report 2011 Fletcher Cons
Page 97: Watercare Services Limited 2011 ANN
show all

Annual Report 2011 - Watercare

Create successful ePaper yourself

Delete template?

Save as template?