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Overview Business Review Governance Financial statements
ITE Group plc Annual Report and Accounts 2012 89
20 Provisions
National
Insurance
on share
options
£000
Leases
£000
Total
£000
At 1 October 2011 1,024 407 1,431
Charged/(credited) to income statement 303 (28) 275
Utilised in the period (520) – (520)
At 30 September 2012 807 379 1,186
Included in current liabilities 589
Included in non-current liabilities 597
1,186
National Insurance on share options is calculated by reference to the employer’s National Insurance cost on the potential
gain based on the difference between the exercise price and share price for those share options where the share price
exceeds the exercise price at 30 September 2012.
The lease provision relates to the spreading of a reduced rent period over the full period of the lease.
21 Financial instruments
Financial assets and liabilities
Details of the accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised in respect of each class of financial asset and financial liability
are disclosed in the accounting policies note on pages 67 to 75.
Categories of financial assets and liabilities
Financial assets and liabilities are classified according to the following categories in the table below. The amounts disclosed
are the contractual undiscounted net cash flows.
Financial assets
2012
£000
2011
£000
Cash and cash equivalents 41,734 33,961
Loans and receivables:
Trade receivables 36,659 35,299
Other receivables 1,972 2,272
Venue loans 3,544 2,867
Derivative financial instruments – designated cash flow hedge 4,215 300
Derivative financial instruments – equity option assets 52 –
88,176 74,699
Financial liabilities
2012
£000
2011
£000
Bank overdraft 15,418 13,948
Bank loan 13,306 14,483
Amortised cost:
Trade payables 1,604 879
Other payables 2,339 3,104
Deferred consideration 381 –
Contingent consideration 480 4,139
Derivative financial instruments – put option liabilities 8,982 12,642
Derivative financial instruments – designated cash flow hedge – 977
42,510 50,172
During the year the put option liabilities and reserves relating to Scoop and Summit (where the Group does not already own a
majority stake) have been reversed. The put option liability remaining at year end relates entirely to the put option over the
40% of Yem Fuar that the Group does not already own. The liability has been discounted at a rate of 5% and the undiscounted
amount is £9.4 million. The equity option asset of £0.1 million relates to the fair value of the call option held over Summit,
which is accounted for at fair value through profit and loss. The options held in respect of Scoop are valued at £nil.