NOTES

Forming part of the financial statements

 

16. TRADE & OTHER RECEIVABLES
Group Company
2013 2012 2013 2012
€m €m €m €m
       

Amounts falling due within one year:

       

Trade receivables

78.0 79.8 - -

Advances to customers

6.9 5.2 - -

Prepayments and other receivables

11.2 8.4 - -
96.1 93.4 - -

Amounts falling due after one year:

   

Advances to customers

31.3 19.5 - -

Amounts due from Group undertakings

- - 47.8 30.6
   

31.3 19.5 47.8 30.6
   

Total

127.4 112.9 47.8 30.6

The aged analysis of trade receivables and advances to customers analysed between amounts that were neither past due nor impaired and amounts past due at 28 February 2013 and 29 February 2012 were as follows:

Gross Impairment Gross Impairment
2013 2013 2012 2012
€m €m €m €m
       

Group

       

Neither past due nor impaired

113.7 - 101.8 -
   

Past due

   

Past due 0-30 days

3.0 (0.8) 1.9 (0.8)

Past due 31-120 days

2.4 (2.1) 3.0 (1.8)

Past due 121-365 days

1.2 (1.2) 1.1 (1.1)

Past due more than one year

2.2 (2.2) 4.3 (3.9)
   

Total

122.5 (6.3) 112.1 (7.6)
       

All trade & other receivables and advances to customers are monitored on an on-going basis for evidence of impairment and assessments are undertaken for individual accounts. A provision for impairment is created where the Group expects it may not be able to collect all amounts due in accordance with the original terms of the agreement with the customer. Balances included in the impairment provision are generally written off when there is no expectation of recovery.

Trade receivables are on average receivable within 42 days (2012: 41 days) of the balance sheet date, are unsecured and are not interest-bearing. All advances to customers acquired on acquisition of the Tennent’s business were recorded at fair value. An impairment provision is created in relation to advances to customers considered receivable in a period outside that originally contracted. The movement in the allowance for impairment in respect of trade receivables and advances to customers during the year was as follows:-

2013 2012
€m €m
   

Group

   

At beginning of year

7.6 2.9

Recovered during the year

(0.2) (0.3)

Provided during the year

2.0 6.3

De-recognised on disposal

- (0.2)

Written off during the year

(2.9) (1.2)

Translation adjustment

(0.2) 0.1
 

At end of year

6.3 7.6
   
17. TRADE & OTHER PAYABLES
Group Company
2013 2012 2013 2012
€m €m €m €m
       

Trade payables

42.6 44.3 - -

Payroll taxes & social security

2.4 1.9 - -

VAT

5.3 4.8 - -

Excise duty

13.3 11.7 - -

Accruals

60.5 79.2 0.7 0.2

Amounts due to Group undertakings

- - 98.7 10.0
   

Total

124.1 141.9 99.4 10.2
       

The Group’s exposure to currency and liquidity risk related to trade & other payables is disclosed in note 23.

Company

The Company has guaranteed the liabilities of certain of its subsidiary companies incorporated in the Republic of Ireland. As at 28 February 2013, the Directors consider these to be in the nature of insurance contracts and do not consider it probable that the Company will have to make a payment under these guarantees and as such discloses them as a contingent liability as detailed in note 26.

18. PROVISIONS
Onerous
Restructuring lease Other Total Total
2013 2013 2013 2013 2012
€m €m €m €m €m
         

At beginning of year

2.0 12.6 2.7 17.3 15.7

Translation adjustment

- (0.3) 0.1 (0.2) 0.2

Additional cost of brand

- - 0.4 0.4 1.7

Charged during the year

1.6 - - 1.6 5.2

Released during the year

(0.4) - - (0.4) (0.2)

Utilised during the year

(2.8) (1.3) (2.4) (6.5) (5.3)
 

At end of year

0.4 11.0 0.8 12.2 17.3
 

Current

2.8 5.8

Non-current

9.4 11.5
 

12.2 17.3

Restructuring

The restructuring provision relates to severance costs arising from the Group’s ongoing reorganisation programme and the Group’s decision to consolidate offices in the UK and in the US. The provision is expected to be utilised in the next financial year.

Onerous leases

The onerous lease provision relates to both an onerous lease agreement to which the Group remains committed following the consolidation of the Group’s Dublin offices into a single location in 2009, and two onerous leases in relation to warehousing facilities acquired as part of the acquisition of the Gaymers cider business in 2010. The onerous leases expire in 2013, 2017 and 2026 respectively. Included in the above table, within utilised during the year, is an unwind of discount on provisions charge of €1.0m (2012: €1.0m).

Other

In the prior year other provisions contained a provision for contingent consideration of €1.8m payable to E & J Gallo Winery on the seven month anniversary of the completion of the acquisition of the Hornsby’s brand. The contingent consideration was payable based on the performance of the brand during the transitional period and the Directors assumed at 29 February 2012 an amount payable of €1.8m based on their expectation of performance in the transitional period at that point in time. The brand however outperformed expectation in the transitional period and the amount ultimately paid in the current year was €2.4m (euro equivalent of $3.0m on date of payment).

Other provisions also include a litigation provision of €0.6m and a provision for the Group’s exposure to employee and third party insurance claims. Under the terms of employer and public liability insurance policies, the Group bears a portion of the cost of each claim up to the specified excess. The provision is calculated based on the expected portion of settlement costs to be borne by the Group in respect of specific claims arising before the balance sheet date.

19. INTEREST BEARING LOANS & BORROWINGS

Group

   
2013 2012
€m €m
   

Non-current liabilities

 

Unsecured bank loans repayable by one repayment on maturity

244.4 -
 

Current liabilities

 

Unsecured bank loans repayable by one repayment on maturity

- 60.0
 
 

Total borrowings

244.4 60.0

Company

2013 2012
€m €m
   

Current liabilities

 

Unsecured bank loans repayable by one repayment on maturity

- 60.0
 
 

Total borrowings

- 60.0

Unamortised issue costs are netted against outstanding bank loans and are being amortised to the income statement on an effective interest rate basis. The value of unamortised issue costs at 28 February 2013 was €2.2m (2012: €nil)

Terms and debt repayment schedule

2013 2012
Nominal Carrying Carrying
rates of Year of value value
Currency interest maturity €m €m
         

Unsecured bank loans

Multi Euribor/Libor + 1.70% 2017 246.6 -

Unsecured bank loans

Euro Euribor + 0.35% 2012 - 60.0
         

246.6 60.0

Borrowing facilities

The Group manages its borrowing ability by entering into committed loan facility agreements.

In February 2012, the Group entered into a committed €250.0m multi-currency five year syndicated revolving loan facility with seven banks, including Bank of Ireland, Bank of Scotland, Barclays Bank, Danske Bank, HSBC, Rabobank, and Ulster Bank, repayable in a single instalment on 28 February 2017. The facility agreement provided for a further €100.0m in the form of an uncommitted accordion facility which the Group successfully negotiated with the banks as committed in December 2012. The facility agreement permits the Group to avail of further financial indebtedness, excluding working capital and guarantee facilities, to a maximum value of €150.0m, subject to agreeing the terms and conditions with the lenders. Consequently the Group is permitted under the terms of the agreement, to have debt capacity of €500.0m, of which €246.6m was drawn at 28 February 2013 (2012: no drawn funds under this facility, €60.0m drawn under the 2007 euro facility).

Under the terms of the agreement, the Group must pay a commitment fee based on 40% of the applicable margin on undrawn committed amounts and variable interest on drawn amounts based on variable Euribor/Libor interest rates plus a margin, the level of which is dependent on the net debt:EBITDA ratio, plus a utilisation fee, the level of which is dependent on percentage utilisation. The Group may select an interest period of one, two, three or six months.

In the prior year there were no drawn funds under the 2012 multi-currency facility however there were outstanding funds of €60.0m under the Group’s 2007 euro facility. During the current financial year, the Group, using surplus cash resources, repaid and cancelled all funds (€60.0m) drawn under its maturing 2007 euro facility, it also repaid €5.2m ($7m) in January 2013 under its 2012 multi-currency facility.

All bank loans are guaranteed by a number of the Group’s subsidiary undertakings. The loan facility agreements allow the early repayment of debt without incurring additional charges or penalties. All bank loans are repayable in full on change of control of the Group.

The Group’s debt facilities incorporate two financial covenants:

  • Interest cover: The ratio of EBITDA to net interest for a period of 12 months ending on each half year date will not be less than 3.5:1
  • Net debt/EBITDA: The ratio of net debt on each half year date to EBITDA for a period of 12 months ending on a half year date will not exceed 3.5:1

At year-end the Group had net debt of €123.4m, with a Net debt/ EBITDA ratio of 0.9:1

Further information about the Group’s exposure to interest rate, foreign currency and liquidity risk is disclosed in note 23.

20. ANALYSIS OF NET DEBT
1 March Translation Cash Non-cash 28 February
2012 adjustment flow changes 2013
€m €m €m €m €m
         

Group

         

Interest bearing loans & borrowings

60.0 0.6 183.2 0.6 244.4

Cash & cash equivalents

(128.3) 3.1 4.2 - (121.0)

(68.3) 3.7 187.4 0.6 123.4
         
1 March Translation Cash Non-cash 29 February
2011 adjustment flow changes 2012
€m €m €m €m €m
         

Group

         

Interest bearing loans & borrowings

135.0 (1.7) (73.6) 0.3 60.0

Cash & cash equivalents

(128.7) 0.6 (0.2) - (128.3)
6.3 (1.1) (73.8) 0.3 (68.3)
         

Interest rate swaps

2.0 - (2.4) 0.4 -
         

8.3 (1.1) (76.2) 0.7 (68.3)
         

The non-cash change to the Group’s interest bearing loans and borrowings relate to the amortisation of issue costs.

1 March Translation Cash Non-cash 28 February
2012 adjustment flow changes 2013
€m €m €m €m €m
         

Company

         

Interest bearing loans & borrowings

60.0 - (60.0) - -

Cash & cash equivalents

(9.3) - 9.2 - (0.1)

50.7 - (50.8) - (0.1)
         
1 March Translation Cash Non-cash 29 February
2011 adjustment flow changes 2012
€m €m €m €m €m
         

Company

         

Interest bearing loans & borrowings

135.0 (1.7) (73.6) 0.3 60.0

Cash & cash equivalents

- - (9.3) - (9.3)
135.0 (1.7) (82.9) 0.3 50.7
         

Interest rate swaps

2.0 - (2.4) 0.4 -
         

137.0 (1.7) (85.3) 0.7 50.7

The non-cash changes to the Company’s interest bearing loans and borrowings relate to the amortisation of issue costs.

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