Sweett Group plc (“Sweett Group” or "the Group") Audited final results for the year ended 31 March 2014
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- 10. Cash flows from operations
- Group Group
- 11. Reconciliation of movement in net debt
- 12. Contingent liabilities
- 13. Post balance sheet events There have been no significant post balance sheet events. ENDS
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Financial assets available for sale relate to the capital cost of 15% of E4D&G Holdco Limited, a company incorporated in England and Wales, and 33.3% of the A shares of Express Lift Investments Limited, a company incorporated in England and Wales. The Group also owns 50% of Sweett Equitix Limited, a company incorporated in England and Wales, at a cost of £51. The Directors do not believe that the Group is able to exert significant influence over either Express Lift Investments Limited or Sweett Equitix Limited. These companies are special purpose vehicles involved in the construction of health and educational facilities under PFI/PPP schemes. The balance of risks and rewards derived from the underlying assets is not borne by the Group, and therefore its interest is accounted for as a financial asset and is classified as available-for-sale and loans and receivables respectively. The Group has now disposed of its interest in all these PFI/PPP schemes except for the retained equity interests referred to above, the benefits of which relate to future potential dividend income. These assets are therefore held at cost and the Directors believe that this approximates to their fair value. Previously the Group’s interest in such assets were held at fair value on the basis that once the construction of the facilities is complete and they are in the operational phase, the fair value could be measured by computing the forecast project cash flows relevant to the Group’s interest, discounted at relevant market discount rates, or by reference to an agreed market value. On 21 January 2014 Sweett Investments Limited transferred its interest in the Scottish hub North Territory project to a new joint venture company, Sweett Equitix Limited jointly owned by Sweett Investments Limited and Equitix Hubco 3 Limited. Under the terms of the transfer agreement, Equitix Hubco 3 Limited will provide substitute financing for the two existing hub North schemes and fund future schemes to the extent previously underwritten by the Group. The cash amount paid to the Group in consideration for the transfer was approximately £900,000. In February 2013 the Group disposed of its investment in 15% of the unsecured loan notes 2039 in the Dumfries & Galloway PFI project. The transaction was achieved via the sale of Cyril Sweett Investments Limited, whose only asset at completion was the loan notes. The consideration was £2,250,000 resulting in a profit of £500,000. The underlying project was Dumfries & Galloway Schools. The Group retains its interest in 15% of the issued share capital of E4D&G Holdco Limited via its wholly owned subsidiary, Sweett Investments (D&G) Limited.
In July 2012 Cyril Sweett Investments Limited disposed of its holding of 19% of the issued share capital and subordinated debt of e4i Holdings Limited for £2,192,860 resulting in a profit of £800,000. The underlying project was Inverclyde Schools. Loans and other receivables represent subordinated loan notes together with accrued interest receivable of £nil (2013: £323,000) and rental deposits repayable after more than one year of £91,000 (2013: £244,000). 10. Cash flows from operations
11. Reconciliation of movement in net debt
12. Contingent liabilities The Group and the Company have contingent liabilities in respect of bonds and guarantees issued to third parties in the normal course of business. At 31 March 2014 the contingent liability amounted to £0.6m (2013: £0.5m). The Company has guaranteed the overdraft facility of Sweett (UK) Limited amounting to £4.9m (2013: £4.9m). There exists a threatened High Court action by a former employee for breach of contract. The Directors are of the view that there is little evidence to support the merit of this possible litigation, in respect of which no provision has therefore been made in these financial statements. With respect to the investigation into allegations contained in the Wall Street Journal in 2013, as explained in the Chairman’s Statement, at present, the directors believe that there is not sufficient evidence to form a view as to the likelihood of any potential fines or other financial consequences. Accordingly no provision has been included within these financial statements. 13. Post balance sheet events There have been no significant post balance sheet events. ENDS Directory: wp-content -> uploads -> 2014 2014 -> For want of a nail 2014 -> Stop Militarizing Law Enforcement Act of 2014 2014 -> Ihbb asian Championships 2014 middle school bowl Round 4 First Quarter 2014 -> Ihbb european Championships 2014 Bowl Round 4 First Quarter 2014 -> International History Bee and Bowl 2013-14 Asian Division Question Set Bowl Round Six 2014 -> United states patent and trademark office 2014 -> Coffs harbour eisteddfod vocal syllabus 2014 -> Listen News Programs Schedule pledge now 2014 -> Slow club announce third album complete surrender Download 0.51 Mb. Share with your friends:
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