54 AVESCOGROUPPLC ANNUAL REPORT 2009
www.avesco.com
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 30 SEPTEMBER 2009
25. Borrowings and loans
Group Company
2009 2008 2009 2008
£000s £000s £000s £000s
Non current
Bank borrowings (note 3.1c) 13,700 14,225 8,500 9,500
Finance lease liabilities (note 3.1c) 5,256 4,613 - -
18,956 18,838 8,500 9,500
Current
Bank overdrafts and borrowings (note 3.1c) 649 141 - -
Finance lease liabilities (note 3.1c) 5,988 5,712 - -
6,637 5,853 - -
The fair value of borrowings is equal to their carrying amount. The fair value of current bank borrowings and overdrafts approximates to the carrying amount
because of the short maturity of these instruments. The fair value of non current bank borrowings approximates to the carrying value in the balance sheet as they
are mainly floating rate loans where payments are reset to market rates at regular intervals.
The carrying amount of the Group’s borrowings are denominated in the following currencies:
2009 2008
£000s £000s
Sterling 17,068 17,880
Euros 2,662 2,022
US Dollar 5,822 4,751
Other currencies 41 38
25,593 24,691
Company borrowings of £8,500,000 (2008: £9,500,000) relate to bank borrowings denominated in Sterling and secured by a fixed and floating charge over the
UK assets of the Group. The loan bears interest based on LIBOR.
Bank borrowings
The overdraft and bank borrowings are secured by a fixed and floating charge over the UK assets of the Group. The loan bears interest based on LIBOR.
Finance lease liabilities
The finance companies, to whom the finance lease obligations exist, hold a charge over the assets that they have financed.
2009 2008
Gross finance lease liabilities - minimum lease payments £000s £000s
In 1 year or less 6,330 6,042
Later than 1 year and no later than 5 years 5,445 4,949
Later than 5 years 8 -
11,783 10,991
Future finance charges on finance leases (539) (666)
Present value of future lease liabilities 11,244 10,325
2009 2008
Present value of finance lease liabilities £000s £000s
In 1 year or less 5,988 5,712
Later than 1 year and no later than 5 years 5,248 4,613
Later than 5 years 8 -
11,244 10,325
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