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Financial Statements
88 ITE Group plc Annual Report and Accounts 2012
17 Current assets and non-current assets continued
The venue advances and other loans of £4.0 million due after one year are all due within five years (2011: £4.0 million due
after more than five years). The venue loans repayable by cash are measured at fair value. The venue prepayments are held
at cost. All venue advances are stated net of allowance for doubtful receivables. The venue advances are denominated
primarily in either Euros or US Dollars and are analysed as follows:
2012
£000
2011
£000
Venue loans
Denominated in US Dollars 1,357 2,049
Denominated in other currencies 2,187 818
3,544 2,867
Venue prepayments
Denominated in Euros 3,402 5,640
Denominated in US Dollars 930 1,194
Denominated in other currencies 1,078 357
5,410 7,191
Total venue loans and prepayments 8,954 10,058
18 Bank borrowings
Bank overdraft
The bank overdrafts are all repayable on demand. Of the total overdraft, £13.3 million (2011: £nil) is denominated in Sterling,
£2.1 million (2011: £2.4 million) is denominated in US Dollars, and £nil (2011: £11.5 million) is denominated in Euros. The Euro
and US Dollar overdraft are taken out to act as a partial hedge against UK monetary assets in those currencies. The
overdrafts have been secured by a guarantee between a number of Group companies. The Directors estimate the carrying
value of the overdrafts approximates their fair value. At 30 September 2012 the Group had £nil (2011: £2.1 million) of gross
undrawn committed overdraft facilities. Following a refinancing of the Group’s loan facilities on 19 November 2012, the
Group’s overdraft facilities were increased by £5 million to £20 million.
The borrowings are arranged at floating interest rates, thus exposing the Group to interest rate risk. During the year ended
30 September 2012 the overdrafts attracted interest at the base rate plus a margin of 2.0%. The average interest rate on
the bank overdrafts approximated 2.1% throughout the year (2011: 2.5%). Following the refinancing of the Group’s loan
facilities on 19 November 2012, the margin on the overdraft was reduced to 1.75%.
Bank loan
During the year ended 30 September 2012 the Group utilised a £15.0 million (2011: £15.0 million) multi-currency committed
bank facility that provided revolving credit facilities through to 30 November 2012. Drawdowns bear interest at interbank
rates of interest plus a margin of 2.5%. A number of Group companies acted as guarantors to this facility. At 30 September
2012 the Group had £1.7 million (2011: £0.5 million) of gross undrawn committed loan facility.
On 19 November 2012 the Group refinanced its loan obligations under the existing facility. The revised facility is a £10.0
million multi-currency committed bank facility that provides revolving credit facilities through to 1 July 2015. Drawdowns
bear interest at interbank rates of interest plus a margin of 2.0%. A number of Group companies continue to act as
guarantors to this facility.
19 Trade and other payables
2012
£000
2011
£000
Trade payables 1,604 879
Taxation and social security 1,650 3,169
Other payables 2,339 3,104
Accruals 8,232 8,475
Deferred consideration 381 –
Contingent consideration 480 4,139
14,686 19,766
Deferred income 69,612 67,867
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
The Directors consider that the carrying value of trade payables approximates their fair value.
Notes to the consolidated accounts continued
For the year ended 30 September 2012