Notes to the Accounts (continued)
for the year ended 31 January 2000 |
20. Reconcilitation of Net Debt |
|
Year ended
31 January
2000
£000
|
Year ended
31 January
1999
£000
|
 |
 |
Increase/(decrease)in cash during the period
Cash outflow from lease financing |
2,887
716 |
(4,063)
720 |
|
|
|
Change in net debt resulting from cash flows
New finance leases in the period |
3,603
(248) |
(3,343)
(950) |
|
|
|
Movements in net debt in the year
Net debt at 1 February 1999 |
3,355
(12,795) |
(4,293)
(8,502) |
|
|
|
|
Net debt at 31 January 2000 |
(9,440) |
(12,795) |
|
|
 |
21. Analysis of Net Debt |
|
Note
|
|
At 1
February
1999
£000
|
Cash
Flow
£000
|
Other
non-cash
£000
|
At 31
January
2000
£000
|
|
|
|
Cash at bank and in hand
Bank overdraft
Net amounts advanced by
invoice discounting
Long term loan
Finance leases |
13
14
22 |
|
432
—
(7,352)
(5,000)
(875) |
(432)
(451)
3,770
—
716 |
—
—
—
—
(248) |
—
(451)
(3,582)
(5,000)
(407) |
|
|
|
|
|
|
|
(12,795) |
3,603 |
(248) |
(9,440) |
|
|
|
22. Maturity Profile of the Company’s Financial Liabilities |
The following table analyses the Company’s financial liabilities which are repayable as follows:
|
|
|
Debt
£000 |
Year ended
31 January
2000
Finance
Leases
£000 |
Total
£000 |
Debt
£000 |
Year ended
31 January
1999
Finance
Leases
£000 |
Total
£000 |
|
|
|
Within one year
Between one and two years
Between two and three years
Between three and four years |
4,033
—
5,000
— |
360
47
—
— |
4,393
47
5,000
—
|
7,352
—
—
5,000 |
577
298
—
— |
7,929
298
—
5,000 |
|
|
|
|
|
9,033 |
407 |
9,440 |
12,352 |
875 |
13,227 |
|
|
|
23. Borrowings and Financial Instruments |
Interest rate risk profile of financial assets and liabilities
Financial Assets
The Company has no financial assets, other than short term debtors and prepayments.
Financial Liabilities
The interest rate profile of the Company’s financial liabilities at 31 January 2000 was: |
| Fixed Rate Financial Liabilities |
|
|
Total
£000 |
Floating Rate
Financial
Liabilities
£000 |
Fixes Rate
Financial
Liabilities
£000 |
Weighted
Average
Interest
Rate
% |
Weighted
Average
Period for
which Rate
is Fixed |
|
|
|
|
|
9,440 |
4,440 |
5,000 |
7.85 |
0.67 Years |
|
|
|
The floating rate liabilities consist of
Sterling and other denominated bank borrowings and overdrafts which bear interest at rates based on UK base rate, and a Sterling denominated invoice discounting facility that bears interest at rates based on UK base rates.
Foreign Currency Exchange Risk
The value of net assets denominated in Euros is £1,294,000
Fair Values of Financial Liabilities
The table below shows the book values and fair values for the Company’s long term borrowings:
|
|
|
Book
value
£000 |
Year ended
31 January
2000
Fair value
£000 |
Book
value
£000 |
Year ended
31 January
1999
Fair value
£000 |
|
|
|
|
Long term borrowings |
5,000 |
5,231 |
5,000 |
5,390 |
|
|
|
24. Borrowing Facilities |
The company has undrawn commited borrowing facilities. The maximum facilities available
at 31 January 2000, in respect of which all conditions have been met, were as follows: |
|
Year ended
31 January
2000
£000
|
Year ended
31 January
1999
£000
|
|
|
|
|
Expiring in one year or less |
16,217 |
13,280 |
|
|
|
25. Capital Expenditure Commitments |
|
Year ended
31 January
2000
£000
|
Year ended
31 January
1999
£000
|
|
|
|
Capital expenditure commitments not provided for in the accounts
Authorised but not contracted for |
— |
132 |
|
|
|
|
|
—
|
132 |
|
|
|
26. Related Party Transactions
RCMS Limited
During the year the Company transacted with RCMS Limited, a company of which Mr Nicholas J A Parker is a Director and major shareholder, by supplying IT contract personnel.
The total turnover with RCMS Limited for the year was £34,065 net of Value Added Tax (VAT) (1999: £869,234). All transactions were performed at arm’s length with gross margin achieved in line with similar non-related clients. At 31 January 2000 the amount inclusive of Value Added Tax incorporated into trade debtors was £ nil (1999: £74,743).
Data Scanning Services Limited
The Company assigned its former premises, Amadeus House, to Data Scanning Services Limited, a company whose Directors during the year ended 31 January 1999 included Messrs Peter J Browne and Nicholas J A Parker. All transactions were conducted at arm’s length with full rent, rates and other property costs being recharged.
During the year ended 31 January 1999 Data Scanning Services Limited experienced financial difficulties and on 22 April 1999 it was placed into liquidation. This does not, however, limit the Company’s ability to collect any debt currently outstanding or future debt as all amounts under the lease are jointly and severally guaranteed by Peter J Browne, Peter P Flaherty, Mark Goldberg and Nicholas J A Parker who were Directors at the time of assignment of the premises.
The total amount charged to Data Scanning Services Limited during the year was £110,866 (1999: £134,402). During August 1999 an agreement was entered into with the landlord to terminate the lease on Amadeus House and at the year end all debts under the guarantee had been paid in full in relation to Amadeus House as the guarantors had paid all amounts outstanding at 31 January 2000.
The Directors have no intention of exercising the call option to acquire 100% of Data Scanning Services Limited which was acquired for £1 on 17 April 1997.
Transaction with a Director
On 7 April 1999 the company purchased a Mercedes motor vehicle from Peter Browne for the sum of £50,000, being the value in the open market at that time. |
|
|
|
|
|
|
|
|
|
