Annual Report and Accounts 2006 - Optos

Notes to the Consolidated Financial Statements
continued
Trade receivables, which generally have 30-90 days’ terms, are recognised and carried at original invoice amount less an allowance for uncollectible amounts.
Provision is made when there is objective evidence that the Group will not be able to collect the debts. Balances are written off when the probability of recovery
is assessed as being remote. The charge recognised in respect of the allowance for uncollectable debt was $208,000 (2005: $140,000).
13 CASH AND CASH EQUIVALENTS
2006 2005
$’000 $’000
Cash at bank and in hand 7,752 2,163
Short-term deposits 28,400 –
For the purposes of the consolidated cash flow statement, cash and cash equivalents comprise the following:
36,152 2,163
2006 2005
$’000 $’000
Cash and cash equivalents
Cash at bank and in hand 36,152 2,163
Overdraft – (6,853)
36,152 (4,690)
Cash at bank earns interest at floating rates based on daily bank deposit rates. The Company had an overdraft facility of £5,000,000 ($8,814,000) with the Bank of
Scotland. The overdraft facility carried an interest rate 2% above the Bank of Scotland base rate. Following the listing of the Group on the London Stock Exchange on
15 February 2006, the Group’s overdraft with the Bank of Scotland was cleared. The Group did not seek to renew the overdraft facility upon its expiry at the end of
March 2006. At 30 September 2005, the Group had available $2,047,000 of undrawn committed borrowing facilities in respect of which all conditions precedent had
been met. There were no restrictions on the use of these facilities.
14 TRADE AND OTHER PAYABLES
2006 2005
$’000 $’000
Trade payables 3,548 3,457
Other taxes and social security costs 1,032 551
Other payables 420 422
Accruals 5,252 3,357
Related parties – 19
10,252 7,806
Optos’ policy for the year to 30 September 2006, for all suppliers, was to fix terms of payment when agreeing the terms of the credit account, to ensure that the supplier
was aware of the terms, and to abide by the agreed terms of payment. Trade payables are paid on the 20th of the month following the month of invoice, equivalent to
an average of 35 days.
Other payables are non-interest bearing and have an average term of between 30 and 60 days.
15 FINANCIAL LIABILITIES
2006 2005
$’000 $’000
Current
Finance leases 40,940 31,587
Bank overdraft – 6,853
40,940 38,440
Non-current
Finance leases 40,220 44,496
Secured loan stock 2006 – 1,763
Unsecured loan stock 2007 – 8,814
40,220 55,073
Optos plc Annual Report & Accounts 2006 53