58 Finsbury Food Group Annual Report & Accounts 2017


12. Other Financial Assets and Liabilities


2017 £000


Non-current Investments in equity accounted investees At the beginning of the financial year Additions


Share of losses


At the end of the financial year Other financial assets


Current assets – derivatives Fair value of interest rate swaps


Fair value of foreign exchange contracts Total of derivatives with positive fair values


Current liabilities – derivatives Fair value of interest rate swaps


Fair value of foreign exchange contracts Total of derivatives with negative fair values


2016 £000


211 80


(22) 269 28


415 145 560


-


(234) (234)


225 -


(14)


211 28


- - -


(140) (17)


(157)


Investment in Associates During the year the Group purchased 6.12% of the ordinary share capital of Dr Zak’s Ltd for a consideration of £80,000, taking the Group’s investment to 31.12%. The cost of investment is deemed to be the fair value. The Group’s share of profit or loss of equity accounted Associates after tax is presented in a single line in the Consolidated Statement of Profit and Loss. This is a loss of £22,000 for the current year (2016: £14,000 loss).


Interest Rate Swaps at Fair Value The Group has a forward dated interest rate swap arrangement to hedge its risks associated with interest rate fluctuations:


£20.0 million for five years from 3 July 2017 (fixed) at 0.455% Two swaps matured during the year:


£3.0 million for four years from 22 May 2013 (fixed) at 1.7% matured 22 May 2017 £6.0 million for three years from 2 June 2014 (fixed) at 1.9% matured 2 June 2017


There was no coverage in place at the year end, (2016: coverage of £9.0 million, equivalent to 46% of total net bank debt at a weighted average rate of 1.8%). A credit of £555,000 (2016: credit £219,000) is shown in finance income for the periods reflecting changes in the fair values of interest rate swaps.


Forward Foreign Exchange Contracts at Fair Value The Group has entered into a number of forward foreign exchange contracts to minimise the impact of fluctuations in exchange rates. A charge of £71,000 (2016: charge £134,000) is shown in administrative expenses for the periods reflecting changes in their fair value.


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