Research and Development Research and development expenditure is written off in the year in which it is incurred.
Directors and Officers’ Liability Insurance The Company maintains a Directors and Officers liability insurance policy.
Financial Instruments The 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. The main purpose of these financial instruments is to finance the Group’s acquisitions and operations. It is the Group’s policy that no trading in financial instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk and liquidity risk. The Board reviews and agrees policies for managing these risks, which have remained substantially unchanged for the year under review. The policies are summarised below:
Interest Rate Risk The Group finances its operations by retained profits and bank borrowings. A suite of borrowing facilities totalling £50.9 million is available of which £21.2 million was drawn at the balance sheet date leaving a headroom of £29.7 million. The interest rate risk is managed through three interest rate swap transactions. The total balance of these swaps was £14.0 million at the period end date. The 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’s financial assets and liabilities are given in Note 25.
Employee Involvement The Group aims to improve the performance of the organisation through the development of its employees. Their involvement is encouraged by means of team working, team briefings, consultative committees and working parties.
Disabled Employees The 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 £4,000 (2014: £1,000) 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. Further details are set out in the Basis of Preparation.
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 AGM.
• 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 Director in order to make himself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.
The Directors’ Report was approved by the Board of Directors on 18 September 2015 and was signed on its behalf by:
Stephen Boyd Director
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