Research and Development Research and development expenditure is written off in the year in which it is incurred.
Directors and Officers’ Liability Insurance Te Company maintains a Directors and Officers liability insurance policy.
Financial Instruments Te Group’s financial instruments comprise mortgage, asset finance facilities, a confidential invoicing facility, revolving credit facility, cash and liquid resources, and various items arising directly from its operations, such as trade creditors. Te main purpose of these financial instruments is to finance the Group’s acquisitions and operations, the Group’s policy that no trading in financial instruments shall be undertaken.
Te main risks arising from the Group’s financial instruments are interest rate risk and liquidity risk. Te Board reviews and agrees policies for managing these risks, which have remained substantially unchanged for the year under review. Te policies are summarised below:
Interest Rate Risk Te Group finances its operations by retained profits and bank borrowings. A suite of borrowing facilities totalling £32 million is available. Tis includes an overdraft facility of £3 million, undrawn invoice discounting facility of £12.0 million, undrawn revolving credit of £6 million and unused asset finance of £1.1 million. Te interest rate risk is managed through three interest rate swap transactions. Te total balance of these swaps was £14.0 million at the period end date. Te counterparty to these transactions is HSBC Bank Plc.
Liquidity Risk Short-term flexibility is available through existing bank facilities and the netting off of surplus funds. Full details of the Group financial assets and liabilities are given in Note 25.
Employee Involvement Te Group aims to improve the performance of the organisation through the development of its employees. Teir involvement is encouraged by means of team working, team briefings, consultative committees and working parties.
Disabled Employees Te Group is committed to equality of employment and its policies reflect a disregard of factors such as disability in the selection and development of employees.
Political and Charitable Contributions During the year charitable donations amounting to £1,000 (2013: £3,000) were made, primarily to local charities.
Going Concern On the basis of current financial projections and available funds and facilities, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future and, therefore, consider it appropriate to prepare the Financial Statements on the going concern basis. Refer to the basis of preparation for further details.
Auditors In accordance with Section 489 of the Companies Act 2006, a resolution for the re-appointment of KPMG LLP as auditors is to be proposed at the forthcoming Annual General Meeting.
• So far as each Directors is aware, there is no relevant audit information of which the Company’s auditor is unaware; and • Each Director has taken all the steps that they ought to have taken as a Directors in order to make himself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.
Te Directors’ Report was approved by the Board of Directors on 19 September 2014 and was signed on its behalf by:
Stephen Boyd Director
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