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| Name | Symbol | Market | Type |
|---|---|---|---|
| Endeavour Sch31 | LSE:57OE | London | Bond |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
From Dec 2019 to Dec 2024
TIDM57OE
RNS Number : 7262E
Endeavour SCH PLC
05 November 2015
Company Registration No. 03672185
ENDEAVOUR SCH PLC
INTERIM MANAGEMENT REPORT AND
CONDENSED UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDING 30 SEPTEMBER 2015
CONTENTS
Company Information 1
Interim Management Report 2
Responsibility Statement 4
Condensed Unaudited Interim Profit and Loss Account 5
Condensed Unaudited Interim Balance Sheet 6
Condensed Unaudited Interim Cashflow Statement 7
Notes to the Condensed Unaudited Interim Financial Statements 8
ENDEAVOUR SCH PLC
COMPANY INFORMATION
Registered Office
8 White Oak Square
London Road
Swanley
Kent
BR8 7AG
Serving Directors
J Graham
N Rae
Alternate Directors
A Ritchie
M Fernandes
Company Secretary
HCP Social Infrastructure (UK) Limited
Auditor
BDO LLP
55 Baker Street,
London,
W1U 7EU
Banker
Barclays Bank PLC
54 Lombard Street
London
EC3P 3AH
Legal Advisors
Pinsent Masons LLP
1 Park Row
Leeds
LS1 5AB
Paying Agent
The Bank of New York Mellon
One Canada Square
London
E14 5AL
ENDEAVOUR SCH PLC
INTERIM MANAGEMENT REPORT
Principal Activity and Business review
The Company's principal activity is that of Private Finance Initiative Concessionaire for the South Tees Acute Hospitals Single Site Project, under the terms of a Concession Agreement dated 16 August 1999 between the Company and South Tees Acute Hospitals National Health Service Trust ('the Trust').
The Company's Concession Agreement requires it to finance, design, develop and construct and then maintain and part operate the enlarged hospital following completion of new facilities and certain other work. The concession is intended to continue for a period of 30 years after hospital completion which occurred on 16 July 2003, and the project is now in its operational phase.
The Company's operations are managed under the supervision of its shareholders and funders and are largely determined by the detailed terms of the Concession Agreement. For this reason, the Company's Directors believe that further key performance indicators for the Company are not necessary or appropriate for an understanding of the performance or position of the Company.
The Company is obliged to meet the conditions laid down in the Bond Trust Deed and Collateral Deed. To the best of the Directors' knowledge the Company has met all of the obligations contained within these Deeds and there have been no Events of Default, Potential Events of Default or Trigger Events with regards to these Deeds.
The Company is obliged to maintain a rating with Moody's. Moody's affirmed the rating during the period and the Company considers the rating given to it satisfactory.
Financial performance and financial position
Income for the period of GBP19.499m (2014: GBP20.661m) and operating profit of GBP3.573m (2014: GBP4.204m) were in line with expectations.
Profit before tax is GBP3.349m (2014: GBP4.313m), and after an increase in the deferred tax provision of GBP0.48m, profit after tax was GBP2.780m (2014: GBP3.534m).
In the opinion of the Directors, the project has achieved satisfactory performance in the period under review.
Principal risks and uncertainties
Availability
Investment in the Project is funded primarily by Index Linked Secured Guaranteed Bonds ('the Bonds') and subordinated unsecured loan stock. During the operational phase the principal source of funds available to meet its liabilities under the Bonds will be Availability Payments received from the Trust under the Concession Agreement. Failure to achieve the forecast levels of availability would result in lower than forecast revenues and this may adversely affect the Company's ability to make payments to Bondholders. There have been no deductions for unavailability in the periods covered by these financial statements.
ENDEAVOUR SCH PLC
INTERIM MANAGEMENT REPORT (continued)
Principal risks and uncertainties (continued)
Major Maintenance
The Company is obliged under the Concession Agreement to undertake major maintenance and plant/equipment replacement so that it continues to satisfy the standards required. There are a number of factors which could lead to higher than projected costs, such as shorter than anticipated life spans or increased inflation on specific items of plant and equipment or worse than expected condition of the residual estate. This risk has been mitigated through contractual arrangements with the subcontractor undertaking this work, as 25% of the risk of asset failure is shared with the subcontractor.
Service Performance
The Soft Services and Maintenance Services are monitored against agreed objective measures. Ultimately, poor performance may result in the Trust having the right to terminate the Concession Agreement. There have been no deductions for poor performance in the periods covered in these financial statements.
Trust Status and Performance
Failure by the Trust to perform its obligations may affect the Company's ability to meet its liabilities to Bondholders. However the Trust's obligations under the Concession Agreement are underwritten by the Secretary of State for Health.
On behalf of the Board
......................................
Neil Rae
Director
2015
ENDEAVOUR SCH PLC
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE
INTERIM MANAGEMENT REPORT
The Directors are responsible for preparing the Interim Management Report and the Condensed Unaudited Interim Financial Statements in accordance with the applicable Disclosure and Transparency Rules of the United Kingdom Financial Conduct Authority in relation to an Issuer of Debt Securities which are listed on the London Stock Exchange.
The annual financial statements of the Company are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP). The financial information contained in the Condensed Unaudited Interim Financial Statements is pro-forma and does not constitute full statutory accounts within the meaning of section 435 of the Companies Act 2006. The information has been extracted from the records of the Company for the six month periods ended 30 September 2015 and 30 September 2014 and 31 March 2015. The information has been prepared using the accounting policies and basis of preparation set out in Note 1 to the Annual Report and Accounts 2014.
Cautionary statement regarding forward-looking statements
The Interim Management Report and Condensed Unaudited Interim Financial Statements (together the "Interim Report") may contain certain projections and other forward-looking statements with respect to the financial condition, results of operations and the business of Endeavour SCH PLC. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Although Endeavour SCH PLC currently believes that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and therefore there can be no assurance that any results contemplated in the forward-looking statements will actually be achieved. Nothing contained in this Interim Report should be construed as a profit forecast or profit estimate. Investors or other recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. Endeavour SCH PLC undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances. This Interim Report does not constitute an invitation or inducement to any person to subscribe for, or otherwise acquire, securities issued by Endeavour SCH PLC.
We confirm to the best of our knowledge:
-- The Condensed Unaudited Interim Financial Statements included in this Interim Financial Report have been prepared in accordance with UK Generally Accepted Accounting Practice and give a true and fair view of the assets, liabilities, financial position and profit of the Company.
-- Appropriate disclosure under DTR 4.2.7R of the Disclosure and Transparency Rules has been made in the Interim Management Report as to any significant events that have occurred during the first six months of the financial year that have had a material impact on the Condensed Unaudited Interim Financial Statements.
-- Appropriate disclosure under DTR 4.2.7R of the Disclosure and Transparency Rules has been made in the Interim Management Report as to a description of the principal risks and uncertainties for the remaining six months of the financial year.
On behalf of the Board
......................................
Neil Rae
Director
2015
ENDEAVOUR SCH PLC
CONDENSED UNAUDITED INTERIM PROFIT AND LOSS ACCOUNT
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 08:32 ET (13:32 GMT)
FOR THE SIX MONTH PERIOD ENDED 30(th) SEPTEMBER 2015
Hot Features
Premium
6 months 6 months
to to
30th September 30th September
2015 2014
Note GBP000 GBP000
TURNOVER 2 19,499 20,661
Cost of sales (15,366) (15,946)
GROSS PROFIT 4,133 4,715
Administrative expenses (560) (511)
OPERATING PROFIT 3 3,573 4,204
Interest payable and similar
charges 4 (2,737) (4,418)
Interest receivable and similar
income 5 2,513 4,527
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 3,349 4,313
Tax on profit on ordinary activities 6 (569) (779)
----------------- -----------------
PROFIT FOR THE PERIOD 2,780 3,534
================= =================
All profits and losses arise from continuing activities. There are no other recognised gains or losses for the period.
The accompanying notes form part of the financial statements.
ENDEAVOUR SCH PLC
CONDENSED UNAUDITED INTERIM BALANCE SHEET AS AT 30 SEPTEMBER 2015
30 September 31 March
2015 2015
Note GBP000 GBP000
CURRENT ASSETS
Debtors: amounts falling due
within one year 7 3,104 7,132
Debtors: amounts falling due
after more than one year 8 133,035 136,520
Cash at bank and in hand 9 20,535 20,397
156,674 164,049
==================== ====================
CREDITORS: Amounts falling due
within one year:
Trade and other Creditors (12,333) (13,109)
Borrowings (4,950) (4,733)
10 (17,283) (17,842)
==================== ====================
NET CURRENT ASSETS 139,391 146,207
TOTAL ASSETS LESS CURRENT LIABILITIES 139,391 146,207
CREDITORS: Amounts falling due
after more than one year 11 (117,597) (120,406)
PROVISIONS FOR LIABILITIES 12 (18,546) (18,977)
TOTAL NET ASSETS 3,248 6,824
==================== ====================
CAPITAL AND RESERVES
Called up share capital 14 50 50
Profit and loss account 15 3,198 6,774
EQUITY SHAREHOLDERS' FUNDS 3,248 6,824
==================== ====================
The accompanying notes form part of the financial statements.
The financial statements were approved and authorised for issue by the Board and were signed on its behalf:
......................................
Neil Rae
Director
2015
ENDEAVOUR SCH PLC
CONDENSED UNAUDITED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
Period Period
ended ended
30 September 30 September
2015 2014
Note GBP'000 GBP'000
Net Cash Inflow from Operating
Activities 6,420 9,593
Returns on Investments and Servicing
of Finance
Interest Received 2,513 4,527
Interest Paid (2,737) (2,991)
Net Cash inflow on Returns on
Investments and Servicing of
Finance 6,196 11,129
Capital expenditure and financial
investment
Capital repayment element of
contract receivable 2,711 1,651
Net Cash (Outflow) on Returns
on Investments and Servicing
of Finance
Equity Dividends Paid (6,356) (4,015)
Financing
Bond - redemption (2,413) (2,942)
--------------- ---------------
Increase in cash and cash equivalents 17 138 5,823
=============== ===============
Reconciliation of Operating
Profit to Net Cash Inflow from
Operating Activities
Operating Profit 3,573 4,204
Depreciation charged - -
Decrease in debtors 4,579 4,966
(Decrease) / Increase in creditors (824) 716
Net movement in provisions (908) (293)
Net Cash Inflow from Operating
Activities 6,420 9,593
======= =======
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
1. Accounting policies
The following accounting policies have been applied consistently in dealing with items that are considered material in relation to the Company's Condensed Unaudited Interim Financial Statements.
a) Basis of preparation
The Condensed Unaudited Interim Financial Statements have been prepared in accordance with applicable accounting standards and under the historical cost basis or the fair value basis where the fair valuing of relevant assets and liabilities has been applied.
b) Finance debtor
Costs incurred in building the acute hospital have been treated as a finance debtor as, in the opinion of the Directors, the Trust enjoys substantially all the risks and rewards of ownership. Unitary charges received from the Trust are allocated between services income, interest receivable and the repayment of the finance debtor using a property specific rate so as to generate a constant rate of return in respect of the finance debtor over the life of the concession.
The finance debtor also includes accrued services income representing the difference between cumulative services income recognised in the profit and loss account and the Unitary Charge invoiced to the Trust.
Costs incurred in respect of Variation works over the course of the contract are added to the finance debtor with related contributions from the Trust being credited to it.
c) Turnover
Unitary charges are allocated between service income, interest receivable on the finance debtor and reimbursement of the finance debtor so as to generate a constant return in respect of the finance debtor over the life of the contract.
Turnover reflects the income allocated to the services provided as part of the overall project, and the interest receivable on the finance debtor.
A margin is applied to costs charged to the profit and loss account to calculate the service income credited to the profit and loss account. This margin is calculated as total income forecast to be receivable over the concession, less all life cycle and other operating costs forecast to be payable over the concession.
d) Debt issue costs
Issue costs in respect of the Company's debt are recognised over the life of the debt using the effective interest rate method and are deducted from the carrying value of the related debt.
e) Deferred tax
As required by FRS 19 "Deferred Tax", full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the Condensed Unaudited Interim Financial Statements and recognition in the tax computation, except for those timing differences in respect of which the standard specifies that deferred tax should not be recognised.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax balances are not discounted.
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 08:32 ET (13:32 GMT)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
Accounting policies (continued)
f) Life cycle costs
The estimated cost of the Company's obligation to maintain the hospital over the period of its agreement with the Trust is charged to the profit and loss account as the obligation arises. A provision has been included in the balance sheet in relation to such life cycle maintenance costs on the basis that an obligation exists under the Project Agreement to carry out such works to ensure that the estate meets the require standards at any given point in time.
g) Capitalised interest
The interest cost of financing the Company's obligations under its Concession Agreement during the construction phase has been capitalised and was included in the value of assets during the course of construction prior to reclassification as a finance debtor.
h) Financial Instruments
Financial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument. The principal financial assets and liabilities of the Company are as follows:
Trade debtors
Trade receivables are initially recognised at fair value and then are stated at amortised cost.
Cash at bank
Cash at bank is carried in the balance sheet at nominal value.
Trade creditors
Trade payables are initially recognised at fair value and then are stated at amortised cost.
Bank and other borrowings
Interest bearing bank loans, bonds, subordinated debt and other loans are recognised initially at fair value. All borrowings are subsequently stated at amortised cost with the difference between initial net proceeds and redemption value recognised in the profit and loss account over the period to redemption.
Finance debtor
The finance debtor is classified as loans and receivables as defined in paragraph 9 of FRS 26, which are initially recognised at fair value and then are stated at amortised cost.
i) Accounting estimates and judgements
In applying the accounting policies detailed above, decisions sometimes have to be made as to the likely outcome of future events. Those judgements and estimates are based on historical experience and assumptions that the Directors believe reasonable in the circumstances. The Directors consider the key judgements and estimates made in preparing the financial statements to have been those relating to the calculation of the margin applied to costs in recognising revenue and the recognition of life cycle costs. These judgements and estimates are discussed in more detail above.
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
Accounting policies (continued)
j) Comparative information
The current period's results are for the six month period ended 30 September 2015. Comparative information is for the year ended 31 March 2015 for balance sheet purposes and for the six month period ended 30 September 2014 for profit and loss and cashflow statement purposes.
2. Turnover
Turnover represents the value of work done and excludes value added tax.
All turnover is derived in the United Kingdom, and from the principal business segment which is the provision of non-clinical services to maintain the availability of hospital facilities.
3. Operating profit
Operating profit is stated after charging:
6 months 6 months
to to
30 September 30 September
2015 2014
GBP000 GBP000
Auditor's remuneration
Audit of the Company 10 10
Other services relating to
taxation 2 4
=============== ==================
Directors' Emoluments
Directors' fees 50 30
=============== ==================
These Directors' fees were paid to Innisfree Limited and Semperian PPP Investment Partners N(o) 2 Limited for provision of the non-executive Directors' services.
The Company has no employees other than directors.
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
4. Interest payable and similar charges
6 months 6 months
to to
30 September 30 September
2015 2014
GBP000 GBP000
Secured 3.607% Index Linked
Bonds 2031 1,757 3,427
Amortisation of Bond Issue
Costs 83 94
Unsecured Subordinated Debt 897 897
--------------- ---------------
2,737 4,418
=============== ===============
Interest payable on the Secured 3.607% Index Linked Bonds 2031 includes bond interest and bond indexation.
5. Interest receivable and similar income
6 months 6 months
to to
30 September 30 September
2015 2014
GBP000 GBP000
Interest receivable on Finance
Debtor 2,440 4,473
Bank interest 73 54
2,513 4,527
=============== ===============
6. Tax on profit on ordinary activities
(a) Analysis of charge in the current period
6 months 6 months
to to
30 September 30 September
2015 2014
GBP000 GBP000
UK Corporation tax on profits
for the period 92 -
Deferred tax 477 779
--------------- ---------------
569 779
--------------- ---------------
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
7. Debtors: amounts falling due within one year
30 September 31 March
2015 2015
GBP000 GBP000
Trade debtors 841 5,342
Finance Debtor 2,230 1,679
Prepayments and accrued income 33 111
3,104 7,132
================= ==========
8. Debtors: amounts falling due after more than one year
30 September 31 March
2015 2015
GBP000 GBP000
Finance Debtor 132,635 136,120
Other Debtors 400 400
133,035 136,520
==================== ============
Finance Debtor brought forward 137,799 146,630
2,440 9,109
Amortisation in the year (5,374) (17,940)
Finance Debtor carried forward 134,865 137,799
================= ===========
Finance Debtor analysed :
Due within one year 2,230 1,679
Due after more than one year 132,635 136,120
134,865 137,799
=================== =========
9. Cash at bank and in hand
30 September 31 March
2015 2015
GBP000 GBP000
Cash at bank and in hand 20,535 20,397
============== ==========
Cash at bank earns interest at floating rates based principally on short-term inter-bank rates.
ENDEAVOUR SCH PLC
NOTES TO CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 08:32 ET (13:32 GMT)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
10. Creditors: amounts falling due within one year
30 September 31 March
2015 2015
GBP000 GBP000
Trade creditors 833 879
Other taxes and social security 1,990 1,949
Accruals and deferred income 9,510 10,281
Secured 3.607% Index Linked
Bonds 2031 4,950 4,733
-------------- ----------
17,283 17,842
============== ==========
11. Creditors: amounts falling due after more than one year
30 September 31 March
2015 2015
GBP000 GBP000
Subordinated Debt 14,914 14,914
Secured 3.607% Index Linked
Bonds 2031 102,683 105,492
117,597 120,406
==================== ==========
Index Linked Bond
Secured 3.607% Index Linked
Bonds 2031 70,431 71,985
Add: Cumulative Indexation 38,966 40,087
-------------------- ----------
109,397 112,072
Less : unamortised net issue
costs (1,764) (1,847)
-------------------- ----------
107,633 110,225
==================== ==========
The bonds are repayable as
follows:-
Amounts falling due within
one year 4,950 4,733
-------------------- ----------
Amounts falling due after one
year
Between one and two years 4,255 4,650
Between two and five years 13,017 13,073
After five years 87,175 89,616
-------------------- ----------
Total amounts falling due after
more than one year 104,447 107,339
109,397 112,072
==================== ==========
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
11. Creditors: amounts falling due after more than one year (continued)
GBP137,400,000 secured index linked bonds 2031 were created on 16 August 1999 of which GBP128,900,000 were issued and sold at 99.992%. The bonds bear interest at 3.607% per annum of their principal amount outstanding. Interest is payable semi-annually in arrears on 28 March and 28 September. The amount of principal outstanding from time to time is subject to indexation in accordance with the terms of the Bond Trust Deed.
The Company retained GBP8,500,000 index linked bonds 2031 ("variation bonds") which it could sell, subject to certain restrictions in the Collateral Deed, to finance contingencies. On 30 November 2000 the Company sold GBP5,000,000 of the variation bonds to fund variations on the hospital construction contract.
The remaining GBP3,500,000 of unsold Variation Bonds were cancelled on 14 February 2009 by the Principal Paying Agent, as instructed by the issuer and in accordance with the Bond Trust Deed and the Paying Agency Agreement.
The bonds are repayable in instalments which commenced in March 2005 and should end in March 2031.
The Company's secured creditors have the benefit of first ranking charges granted by the Company over the whole of its investments, undertaking, property, assets, insurances and rights under certain contracts, both present and future, together with a first ranking charge over all of the ordinary shares of the Company and the Company's subordinated loan stock and those of its holding Company, Endeavour SCH Holdings Limited.
Unsecured Loan Stock 2032 (Subordinated debt)
The Company is a wholly beneficially owned subsidiary of Endeavour SCH Holdings Limited. The beneficial owners of the holding company are Innisfree M & G PPP LP, through its nominee Innisfree Nominees Limited and Semperian PPP Investment Partners N(o) 2 Limited.
On 16 August 1999, the Company and Endeavour SCH Holdings Limited created GBP23,060,000 unsecured Loan Notes 2032, constituted under Deed Polls entered into on the same date. On 30 November 2000 a further GBP1,400,000 of Loan Notes were created to fund variations required on the construction contract.
Under the terms of an Equity Subscription Agreement dated 16 August 1999 as amended on 30 November 2000, the Shareholders of the holding Company agreed to subscribe for Loan Stock of Endeavour SCH Holdings Limited to the value of GBP24,460,000. Endeavour SCH Holdings Limited in turn agreed to subscribe for up to GBP24,460,000 of the Loan Stock of the Company. The proceeds of the stock issue are being used by the Company to finance its obligations under its contract with the Trust.
A proposal by the shareholders to change the payment profile of outstanding subordinated debt principal has been approved by the FCA. The final principal payment becomes GBP14,914,349 which was the amount outstanding at 30 September 2015. Interest will be calculated on this outstanding principal, and will continue to be paid twice yearly as normal.
The Notes are repayable as follows:
As at 30 September 2015 and at 31 March 2014
2015
GBP'000
After more than 5 years 14,914
Interest is payable on the Notes at a rate of 12% per annum with effect from 10 June 2003.
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
11. Creditors: amounts falling due after more than one year (continued)
Where the Notes are redeemed after 30 September 2003, the price will be the higher of par less any amount already redeemed and that price, expressed as a percentage, at which the Gross Redemption Yield on the Notes would be equal to the Gross Redemption Yield on such other United Kingdom Government Stock as the Company shall determine to be appropriate based on the middle market price of the reference stock on the third dealing day prior to the proposed date of redemption.
The interest rate risk profile of the Company's financial liabilities as at the last audited balance sheet date of the 31(st) March is as follows:
Fixed Fixed
Total Floating Fixed rate weighted rate
31 March rate rate average weighted
2015 31 March 31 March interest average
GBP'000 2015 2015 rate at time
GBP'000 GBP'000 31 March for which
2015 rate
% is fixed
March
2015
Years
2015 -
Sterling 125,463 110,549 14,914 12.0 19
2014 -
Sterling 129,678 114,764 14,914 12.0 20
As the 3.607% index linked secured bonds are partially linked with the Retail Price Index, the instrument has been categorised as floating rate debt in the above table. The underlying principal of the bonds is index linked and the 3.607% fixed interest element of the instrument is also index linked. Total liabilities shown above comprise the gross amount of the bonds in issue and the subordinated debt.
The directors do not believe there has been a material change in the above information from the audited balance sheet date to 30 September 2015 that would affect the users of the Condensed Unaudited Interim financial statements.
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
12. Provision for liabilities
Deferred
Tax Lifecycle Total
GBP000 GBP000 GBP000
As at 31(st) March
2015 15,295 3,682 18,977
Amount provided for
in the period 477 - 477
Paid during the period - (908) (908)
----------- ---------
As at 30(th) September
2015 15,772 2,774 18,546
========== =========== =========
It is anticipated that the life-cycle provision will be utilised within one year.
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 08:32 ET (13:32 GMT)
The deferred tax balance is analysed as follows.
30 September 31 March
2015 2014
GBP000 GBP000
Capitalised interest 5,074 5,269
Capital allowances 10,567 10,737
Short lease premium relief 596 624
Losses carried forward (465) (1,335)
Provision for deferred tax 15,772 15,295
============== ==========
13. Financial instruments
All information in this note represents the audited balance sheet as at 31 March 2015. The directors do not believe there has been a material change in this information that would affect the users of the Condensed Unaudited Interim financial statements;
All of the Company's financial liabilities are measured at amortised cost and all of the company's financial assets are classified as loans and receivables.
Financial Assets
The Company has one long term financial asset being the finance debtor (see note 8). This asset yields interest at a fixed rate of 7% per annum over the term of the lease, of which 20 years of the primary period are remaining.
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
13. Financial instruments (continued)
Financial Risk Management Policies and Objectives
The Company's principal financial instruments comprise short term cash deposits, index linked bonds and a subordinated loan. The main purpose of these financial instruments is to ensure, via the terms of the financial instruments, that the profile of the debt service costs is tailored to match expected revenues arising from the Concession Agreement.
The Company does not undertake financial instrument transactions which are speculative or unrelated to the Company's trading activities. Board approval is required for the use of any new financial instrument, and the Company's ability to do so is restricted by covenants in its existing funding agreements.
Exposure to liquidity, credit and interest rate risks are in the normal course of the Company's business.
Liquidity Risk
Repayments of the index linked bonds and the subordinated loan are tailored to match expected revenue receivable under the terms of the Concession Agreement, so ensuring sufficient funds are available when repayments are due.
The following table sets out the timing of expected future cash flows, including interest payments, in respect of the Company's long term debtors and loan balances:
1-2 2-5
2015 Effective Total 1 year years years 5+ years
or
interest less
rate GBP000 GBP000 GBP000 GBP000 GBP000
Bank balances (note
9) 0.6% 20,397 20,397 - - -
Finance Debtor ** 4.0% 228,550 8,390 14,356 39,646 166,458
Trade debtors (note
7) 5,342 5,342 - - -
Guaranteed secured
bonds ** 3.6% (162,484) (8,784) (8,592) (24,301) (120,807)
Unsecured subordinated
loan 12.0% (14,914) - - - (14,914)
Trade creditors
(note 10) (879) (879) - - -
----------- --------- --------- ---------- -----------
76,012 24,466 5,764 15,345 30,737
=========== ========= ========= ========== ===========
** The effective interest rate is adjusted for the effect of inflation. At 31 March 2015 the annual impact was an additional 2.5%
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
13. Financial instruments (continued)
1-2 2-5
2014 Effective Total 1 year years years 5+ years
or
interest less
rate GBP000 GBP000 GBP000 GBP000 GBP000
Bank balances 0.6% 17,096 17,096 - - -
Finance Debtor 4.0% 246,067 17,517 8,390 41,288 178,872
Trade debtors 6,165 6,165 - - -
Guaranteed secured
bonds 3.6% (169,523) (9,574) (8,638) (24,530) (126,781)
Unsecured subordinated
loan 12.0% (14,914) - - - (14,914)
Trade creditors (1,093) (1,093) - - -
83,798 30,111 (248) 16,758 37,177
=========== ========== ========= ========== ===========
Credit Risk
Although the Trust is the only client of Endeavour SCH PLC, the Directors are satisfied that the Trust will be able to fulfil their collateral obligations under the Concession Agreement that are in turn underwritten by the Secretary of State for Health. As at the period end no amounts were past their due date. Cash and bank balances are held with financial institutions.
Interest Rate Risk
In respect of income-earning financial assets and interest-bearing financial liabilities, the following table indicates their effective interest rates at the balance sheet date and the period in which they mature:
1-2 2-5
2015 Effective Total 1 year years years 5+ years
or
interest less
rate GBP000 GBP000 GBP000 GBP000 GBP000
Bank balances 0.6% 20,397 20,397 - - -
Finance Debtor 4.0% 137,799 1,679 6,176 16,483 113,461
Guaranteed secured
bonds 3.6% (110,549) (4,733) (4,650) (13,074) (88,092)
Unsecured subordinated
loan 12.0% (14,914) - - - (14,914)
32,733 17,343 1,526 3,409 10,455
=========== ========= ========= ========== ==========
ENDEAVOUR SCH PLC
NOTES TO THE CONDENSED UNAUDITED INTERIM ACCOUNTS (continued)
FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2015
13. Financial instruments (continued)
1-2 2-5
2014 Effective Total 1 year years years 5+ years
or
interest less
rate GBP000 GBP000 GBP000 GBP000 GBP000
Bank balances 0.6% 17,096 17,096 - - -
Finance Debtor 4.0% 146,630 8,831 1,885 17,588 118,326
Guaranteed secured
bonds 3.6% (114,764) (5,528) (4,831) (14,445) (89,960)
Unsecured subordinated
loan 12.0% (14,914) - - - (14,914)
34,048 20,399 (2,946) 3,143 13,452
============ ========== ========= ========== ==========
Fair Values
The comparison of book and fair values of the Company's financial instruments at 31 March 2015 and 31 March 2014 is set out below. Where available, market values have been used to determine fair values. Where market values are not available, fair values have been calculated by discounting cash flows at prevailing interest rates. The disclosures below exclude short-term debtors and creditors where there is not considered to be a material difference between fair value and the carrying value.
2015 2015 2014 2014
Book Fair Book Fair
value value value value
GBP000 GBP000 GBP000 GBP000
Cash at bank 20,397 20,397 17,096 17,096
Finance Debtor 137,799 158,739 146,630 180,265
Subordinated Loan
Stock (14,914) (14,914) (14,914) (14,914)
Guaranteed secured
bonds (112,072) (135,793) (114,764) (182,978)
31,210 28,429 34,048 (531)
=========== =========== =============== =============
(MORE TO FOLLOW) Dow Jones Newswires
November 05, 2015 08:32 ET (13:32 GMT)
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