64 Finsbury Food Group Annual Report & Accounts 2016





(continued)


c) Credit Risk  and arises principally from the Group’s receivables from customers. These trading exposures are monitored and managed at operating level and   maximum credit exposure. Therefore, the maximum exposure to credit risk for the trade receivables at the period end date was £44.9 million (2015: £42.8 million) and the ageing of trade receivables at the period end date was:


2016 £000


Not past due


Past due 0-30 days Past due 31-120 days


Past due more than 120 days


42,709 1,779 391 21


44,900


2015 £000


39,445 2,263 1,097 40


42,845


 


The Group’s strategy is to focus on supplying UK multiple grocers and foodservice distributors, the nature of these customers is such that there is a relatively low risk of them failing to meet their contractual obligations. There is no impairment necessary to the value of trade receivables at the  by more than 30 days is equivalent to less than 1 day sales (2015: £1.1 million, equivalent to 2 days).





d) Market Risk i) Interest Rate Risk The Group’s interest rate risk exposure is primarily to changes in variable interest rates. The Group has entered into three interest rate swap 





2016 £000


Variable rate liabilities 22,745


2015 £000


21,274


Swaps amounting to £9,000,000 (2015: £14,000,000) limit the risk associated with the variable rate liabilities, the weighted average interest rate at 2 July 2016 is 1.8% (2015: 2.5%).


Sensitivity A 1% increase in the base rate or LIBOR would have the following impact on interest charges and associated net assets for the Group, this 


2016 £000


 Decrease in net assets


A 1% decrease in the base rate or LIBOR would have an equal and opposite impact to those listed above. The above movement is not equal to 1% of interest-bearing loans because of interest rate swap cover that is in place.


ii) Commodity Prices  customers as far as is reasonable in the circumstances whilst maintaining its tight control over overhead costs to mitigate the impact on consumers. The Group maintains a high expertise in its buying team and will consider long-term contracts where appropriate to reduce uncertainty in commodity 


iii) Foreign Exchange Risk The Group currently supplies UK manufactured products to Lightbody Stretz Ltd, its 50% owned selling and distribution business trading primarily in Europe. The Group also purchases some raw materials in foreign currency. The consequence of this is that the Group is exposed to movement 


345 345


2015 £000


318 318


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