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| Name | Symbol | Market | Type |
|---|---|---|---|
| Trafford 'a2' | LSE:BC84 | London | Bond |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 136.65 | 0 | 00:00:00 |
From Jan 2020 to Jan 2025
TIDMBC84
RNS Number : 0173B
Trafford Centre Finance Ld
17 September 2018
THE TRAFFORD CENTRE FINANCE LIMITED
LEI: 213800J9WWQVUK5FE223
17 September 2018
HALF-YEARLY FINANCIAL REPORT
In compliance with Disclosure and Transparency Rule 4.2, the Trafford Centre Finance Limited (the "Company") announces the publication of its Half-Yearly Financial Report for the period ended 30 June 2018. Pursuant to Listing Rule 9.6.1, a copy of this document has been submitted to the National Storage Mechanism and will shortly be available for inspection at Morningstar.co.uk/uk/NSM
The Half-Yearly Report will also shortly be available for download at intugroup.co.uk
THE TRAFFORD CENTRE FINANCE LIMITED
OPERATING AND FINANCIAL REVIEW
FOR THE SIX MONTHSED 30 JUNE 2018
The Trafford Centre Finance Limited ("the company") is incorporated and registered in the Cayman Islands. The company's registered office is 190 Elgin Avenue, George Town, Grand Cayman, Cayman Islands KY1-9007.
The principal activity of the company is the provision of financing to The Trafford Centre Limited which owns the intu Trafford Centre shopping centre. This is funded by the issue of loan notes. The company receives interest on the provision of financing to The Trafford Centre Limited at rates equal to those paid on its external debt plus additional interest of 0.01% per annum on the average principal loan amount outstanding. Any financing related fees incurred by the company are also charged on to The Trafford Centre Limited.
The company's results and financial position for the period ended 30 June 2018 are set out in full in the income statement, balance sheet, statement of changes in equity, statement of cash flows and the notes to the condensed interim financial statements.
The company's profit before taxation for the six months to 30 June 2018 was GBP3,000 (year ended 31 December 2017 profit of GBP50,000, six months ended 30 June 2017 profit of GBP31,000) with net assets increasing to GBP1,021,000 (as at 31 December 2017 GBP1,018,000, as at 30 June 2017 GBP886,000).
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business. The directors expect that the present level of activity will continue for the foreseeable future.
The directors of the company who were in office during the period and up to the date of signing the condensed interim financial statements were:
Raulin Amy
David Fischel
Matthew Roberts
KEY RISKS AND UNCERTAINTIES
As the company's principal activity is to provide financing to The Trafford Centre Limited, the company's key risks and uncertainties are those faced by The Trafford Centre Limited to the extent that they impact The Trafford Centre Limited's ability to meet its obligations to the company including those related to the terms of the company's borrowings which are secured on the assets of The Trafford Centre Limited. The key risks and uncertainties facing The Trafford Centre Limited and the company are set out below:
Hot Features
Premium
Risk & Impact Mitigation Change 2018 commentary
Property
Macro-economic Likelihood of macro-economic
Weakness in * Prime asset + weakness has increased and
the continues to be a risk with
macro-economic political uncertainty in
environment * Covenant headroom monitored and stress-tested the UK and Brexit arrangements
could not yet detailed
undermine * Reduction in property value in the period
rental * Make representation on key policies, for example
income levels business rates
and property * Substantial covenant headroom
values,
reducing * Marketing events to attract footfall
return on
investment
and covenant * Use our respected brand to attract and retain
headroom aspirational retailers
------------------------------------------------------------ ------- ------------------------------------------------------------
Retail + Likelihood has increased
environment * Active management of tenant mix and severity of potential
Failure to impact was monitored and
react managed closely in the period
to changes in * Regular monitoring of tenant strength and diversity with intu's strategy continuing
the retail to deliver solid footfall
environment numbers and occupancy
could * Tell intu customer feedback programme helps identify * Continuing digital investment to improve relevance as
undermine changes in customer preferences shopping habits change
intu Trafford
Centre's
ability * Work closely with retailers * Footfall continues to outperform the benchmark
to attract
customers
and tenants * Digital strategy that embraces technology and digital
customer engagement. This enables intu to engage in
and support multichannel retailing, and to take the
opportunities offered by ecommerce
------------------------------------------------------------ ------- ------------------------------------------------------------
Risk & Impact Mitigation Change 2018 commentary
Operations
Health and Likelihood and severity of
safety * Strong business process and procedures, including = potential impact has not
Accidents compliance with OHSAS 18001, supported by regular changed signi cantly during
or system training and exercises the period
failure * Retained OHSAS 18001, demonstrating consistent health
leading and safety management process and procedures across
to financial * Annual audits of operational standards carried out the portfolio
and/or internally and by external consultants
reputational
loss * Work continuing towards achieving additional
* Culture of visitor, staff and contractor safety accreditations with focus on ISO 14001
* Crisis management and business continuity plans in * Gold award from RoSPA
place and tested
* Full review undertaken of intu Trafford Centre's fire
* Retailer liaison and briefings strategy and building specifications following
Grenfell and Liverpool Arena car park fire has
provided appropriate assurance
* Appropriate levels of liability insurance
* Primarily Authority audits for both health and safety
* Continued investment of insurers' risk mitigation and fire safety are being conducted in accordance
bursaries with programme. These provide assurances surrounding
compliance
* Increased resources to counter anti-social behaviour
* Staff succession-planning and development in place to
ensure continued delivery of world class service
* Health and safety managers or coordinators in all
intu centres
------------------------------------------------------------- ------- ------------------------------------------------------------
Cyber-security = Likelihood is unchanged and
Loss of data * Data and cyber security strategies continues to rely on operational
and and third party systems and
information data. Severity of potential
or failure * Regular testing programme and cyber scenario exercise impact managed through continued
of key systems and benchmarking development of tools and
resulting controls. Hacking attempts
in financial have not resulted in data
and/or * Appropriate levels of insurance loss or major operational
reputational impacts
loss * Ongoing intu-wide cybersecurity project with
* Crisis management and business continuity plans in investment in tools, consultancy and staff to
place and tested mitigate impact of threats from evolving
cybersecurity landscape
* Data committee and data protection officer in place
* implemented updated GDPR policies and procedures
* Monitoring of regulatory environment and best
practice
* Cybersecurity testing performed by external
consultancy and full action plan in place (programme
of works)
* Managing of supply chain and service providers who
hold intu data
------------------------------------------------------------- ------- ------------------------------------------------------------
Terrorism = Overall likelihood and severity
Terrorist * Strong business process and procedures, supported by of potential impact unchanged
incident at regular training and exercises, designed to adapt and but recognition of changing
intu Trafford respond to changes in risk levels terrorist methods
Centre or * National threat level remains at Severe
another major
shopping * Extraordinary pre-planned operational responses to
centre changes in national threat level * Major multi-agency security exercise held at intu
resulting Trafford Centre
in loss of
consumer * Annual audits of operational standards and physical
confidence protection measures carried out internally and by * Operating procedures in place for the introduction of
with external agencies further security measures if required
consequent
impact on
lettings and * Culture of visitor, staff and contractor safety
rental growth
* Crisis management and business continuity plans in
place and tested with involvement of multiple
external agencies
* Retailer liaison and briefings
* Appropriate levels of insurance
* Strong relationships and frequent liaison with police,
NaCTSO and other agencies
* NaCTSO approved to train staff in counter-terrorism
awareness programme
* NaCTSO counter terrorism assessments completed for
intu Trafford Centre
* Internal head of security in place supported by
security strategy group
------------------------------------------------------------- ------- ------------------------------------------------------------
Key
Change in level of risk:
+ Increased = Remained the same
DIRECTORS' RESPONSIBILITY STATEMENT
FOR THE SIX MONTHSED 30 JUNE 2018
The directors are responsible for preparing the interim report and condensed set of interim financial statements (interim financial statements), in accordance with applicable law and regulations. The directors confirm that, to the best of their knowledge:
-- the interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union; and
-- the interim report includes a fair review of both the information required by Sections DTR 4.2.7R, and that which is subject of DTR 4.2.8R of the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The Operating and Financial Review refers to important events which have taken place in the period.
The principal risks and uncertainties facing the business are referred to in the Operating and Financial Review.
Related party transactions are set out in note 12 of the interim financial statements.
A list of current directors is provided in the Operating and Financial Review.
On behalf of the Board
David Fischel
Director
13 September 2018
INDEPENT REVIEW REPORT TO
THE TRAFFORD CENTRE FINANCE LIMITED
Report on the condensed interim financial statements
Our conclusion
We have reviewed The Trafford Centre Finance Limited's condensed interim financial statements (the "interim financial statements") in the interim report of the Trafford Centre Finance Limited for the 6 month period ended 30 June 2018. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the balance sheet as at 30 June 2018;
-- the income statement for the period then ended;
-- the statement of cash flows for the period then ended;
-- the statement of changes in equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the interim report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Company is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
Responsibilities for the condensed interim financial statements and the review
Our responsibilities and those of the directors
The interim report, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority
Our responsibility is to express a conclusion on the interim financial statements in the interim report based on our review. This report, including the conclusion, has been prepared for and only for the directors of the Company as a body, for management purposes, for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. Our report may not be made available to any other party without our prior written consent. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
What a review of condensed financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
London
13 September 2018
THE TRAFFORD CENTRE FINANCE LIMITED
INCOME STATEMENT (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2018
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2018 2017 2017
Notes GBP000 GBP000 GBP000
Administration expenses (14) (10) (31)
----------- ----------- ------------
Operating loss (14) (10) (31)
Finance income 4 23,054 24,427 48,640
Finance costs 4 (23,037) (24,386) (48,559)
Change in fair value of financial 4 - - -
instruments
----------- ----------- ------------
Net finance income 17 41 81
----------- ----------- ------------
Profit before tax 3 31 50
Taxation - - -
----------- ----------- ------------
Profit for the period 3 31 50
=========== =========== ============
Other than the items in the income statement above, there are no other items of comprehensive income and accordingly a separate statement of comprehensive income has not been prepared.
THE TRAFFORD CENTRE FINANCE LIMITED
BALANCE SHEET (unaudited)
AS AT 30 JUNE 2018
As at As at As at
30 June 31 December 30 June
2018 2017 2017
Notes GBP000 GBP000 GBP000
Non-current assets
Trade and other receivables 5 701,096 733,551 745,559
Derivative financial instruments 8 93,528 103,256 99,830
---------- ------------ ----------
794,624 836,807 845,389
Current assets
Trade and other receivables 5 53,218 33,032 27,926
Derivative financial instruments 8 1,475 1,611 1,653
Cash and cash equivalents 506 467 426
---------- ------------ ----------
55,199 35,110 30,005
Total assets 849,823 871,917 875,394
---------- ------------ ----------
Current liabilities
Borrowings 7 (44,573) (22,243) (17,417)
Trade and other payables 6 (8,130) (10,238) (10,049)
Derivative financial instruments 8 (1,475) (1,611) (1,653)
---------- ------------ ----------
(54,178) (34,092) (29,119)
Non-current liabilities
Borrowings 7 (701,096) (733,551) (745,559)
Derivative financial instruments 8 (93,528) (103,256) (99,830)
---------- ------------ ----------
(794,624) (836,807) (845,389)
Total liabilities (848,802) (870,899) (874,508)
---------- ------------ ----------
Net assets 1,021 1,018 886
========== ============ ==========
Equity
Share capital 9 - - -
Other reserves 113 113 -
Retained earnings 908 905 886
---------- ------------ ----------
Total equity 1,021 1,018 886
========== ============ ==========
THE TRAFFORD CENTRE FINANCE LIMITED
STATEMENT OF CHANGES IN EQUITY (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2018
Share Other Retained Total
capital Reserves earnings equity
GBP000 GBP000 GBP000 GBP000
At 1 January 2017 - - 855 855
---------- --------- --------- -------
Profit for the period - - 31 31
---------- --------- --------- -------
Total comprehensive
income for the period - - 31 31
---------- --------- --------- -------
At 30 June 2017 - - 886 886
========== ========= ========= =======
At 1 July 2017 - - 886 886
---------- --------- --------- -------
Profit for the period - - 19 19
---------- --------- --------- -------
Total comprehensive
income for the period - - 19 19
Capital injection from
parent - 113 - 113
---------- --------- --------- -------
At 31 December 2017 - 113 905 1,018
========== ========= ========= =======
At 1 January 2018 - 113 905 1,018
---------- --------- --------- -------
Profit for the period - - 3 3
---------- --------- --------- -------
Total comprehensive
income for the period - - 3 3
---------- --------- --------- -------
At 30 June 2018 - 113 908 1,021
========== ========= ========= =======
THE TRAFFORD CENTRE FINANCE LIMITED
STATEMENT OF CASH FLOWS (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2018
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2018 2017 2017
Notes GBP000 GBP000 GBP000
Cash (used in)/generated from
operations 11 (3) 255 (1,715)
Interest received 22,927 23,103 49,414
Interest paid (22,885) (23,318) (47,731)
----------- ----------- ------------
Cash flows from operating activities 39 40 (32)
----------- ----------- ------------
Amounts owed by group undertaking
- received 10,688 7,415 15,069
----------- ----------- ------------
Cash flows from investing activities 10,688 7,415 15,069
Borrowings repaid (10,688) (7,415) (15,069)
Capital injection from parent - - 113
Cash flows from financing activities (10,688) (7,415) (14,956)
----------- ----------- ------------
Net increase in cash and cash
equivalents 39 40 81
Cash and cash equivalents at beginning
of
period 467 386 386
----------- ----------- ------------
Cash and cash equivalents at end
of period 506 426 467
=========== =========== ============
THE TRAFFORD CENTRE FINANCE LIMITED
NOTES (unaudited)
FOR THE SIX MONTHSED 30 JUNE 2018
1. Basis of preparation
The condensed set of interim financial statements ("interim financial statements") for the six months ended 30 June 2018 are unaudited. The interim financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the Financial Conduct Authority and with IAS 34 as adopted by the European Union.
The comparative information presented for the year ended 31 December 2017 is not the company's financial statements for that year. Those financial statements have been reported on by the company's auditors. The auditors' opinion on those financial statements was unqualified and did not contain an emphasis of matter paragraph.
The interim financial statements should be read in conjunction with the company's financial statements for the year ended 31 December 2017 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
Use of estimates and assumptions
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the interim financial statements, the areas of significant judgement made by management in applying the company accounting policies and the key sources of estimation uncertainty were the same as those applied to the financial statements as at and for the year ended 31 December 2017. In particular, significant judgement is required in the use of estimates and assumptions in the valuation and accounting for derivative financial instruments.
Going concern
In assessing whether the going concern basis of preparation is appropriate to adopt, the directors considered a number of factors including financial projections of the company and the level of financial support that may be available to the company by its ultimate parent, intu properties plc. In addition, investment property held by The Trafford Centre Limited, a fellow subsidiary of intu properties plc, acts as security for the financial instruments which are held in The Trafford Centre Finance Limited. The ability of the company to meet the obligations of these financial instruments is dependent upon the performance of The Trafford Centre Limited and its ability to meet its obligations to the company. In concluding that the going concern basis of preparation is appropriate the directors have considered the net rental income forecasts of The Trafford Centre Limited. Based on this review the directors have concluded that it is appropriate to continue to adopt the going concern basis of accounting in preparing the entity's interim financial statements.
2. Accounting policies
The accounting policies applied are consistent with those of the company's financial statements for the year ended 31 December 2017 as set out on pages 12 to 14 of that Report and Financial Statements as amended when relevant to reflect the adoption of new standards, amendments and interpretations which became effective in the period. These amendments have not had an impact on the financial statements. These have been applied in preparing these interim financial statements to the extent that they are relevant to the preparation of interim financial information but have not resulted in any material changes to the information presented.
Taxes on income in interim periods are accrued using tax rates expected to be applicable to total annual earnings.
3. Operating segments
Management have not identified separate operating segments and rely on information presented in the primary statements for decision making purposes.
4. Net finance costs
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
Finance income
On amounts due from group undertaking 23,054 24,427 48,640
23,054 24,427 48,640
========== ========== ============
Finance costs
On borrowings (23,032) (24,385) (48,557)
Other interest (5) (1) (2)
---------- ---------- ------------
(23,037) (24,386) (48,559)
========== ========== ============
Change in fair value of financial
instruments
On external derivative financial
instruments 9,728 8,567 (5,139)
On derivative financial instruments
with
The Trafford Centre Limited (9,728) (8,567) 5,139
---------- ---------- ------------
- - -
========== ========== ============
5. Trade and other receivables
As at As at As at
30 June 31 December 30 June
2018 2017 2017
GBP000 GBP000 GBP000
Current
Amounts owed by group undertaking 45,498 23,179 18,342
Less: finance costs (925) (936) (925)
------- ----------- -------
Net loan amount 44,573 22,243 17,417
Accrued income and other amounts
due
from group undertaking 8,266 10,402 10,462
Prepayments 373 387 44
Other receivables 6 - 3
------- ----------- -------
53,218 33,032 27,926
======= =========== =======
As at As at As at
30 June 31 December 30 June
2018 2017 2017
GBP000 GBP000 GBP000
Non-current
Amounts owed by group undertaking 711,357 744,363 756,855
Less: finance costs (10,261) (10,812) (11,296)
--------- ----------- ---------
Net loan amount 701,096 733,551 745,559
========= =========== =========
The amounts owed by group undertaking relate to an intercompany loan with The Trafford Centre Limited where the company's borrowings with external parties are passed to The Trafford Centre Limited. The amounts owed are unsecured and the repayment profile matches the maturity profile of the company's borrowings as The Trafford Centre Limited is required to provide funds to the company in order for it to meet its external funds obligations. The recoverability of these balances has been reviewed and as a result no allowance for doubtful debts is considered to be required. There have been no impairments on receivables or amounts written off in the year.
Interest is due on the intercompany loans at rates equal to those paid on the external debt plus additional interest of 0.01% per annum on the average principal loan amount outstanding. Interest is also due to cover any fees and costs incurred by the company.
6. Trade and other payables
As at As at As at
30 June 31 December 30 June
2018 2017 2017
GBP000 GBP000 GBP000
Amounts owed to group undertaking - 1,690 1,802
Accruals 7,987 8,403 8,247
Other payables 143 145 -
------- ----------- -------
8,130 10,238 10,049
======= =========== =======
Amounts owed to group undertakings are unsecured and repayable on demand. No interest is charged on these amounts.
7. Borrowings
Year
Interest Final As at ended 31 As at
rate maturity 30 June December 30 June
2018 2017 2017
GBP000 GBP000 GBP000
Current
Secured notes:
Class
A2 6.5% 2033 11,992 11,619 11,260
A4 2.875% 2019 20,000 - -
B 7.03% 2029 4,604 4,450 4,302
D2 8.28% 2022 8,902 7,110 2,780
Debt falling
due
within one year 45,498 23,179 18,342
Less: finance
costs (925) (936) (925)
--------- --------- ---------
Net loan
amount 44,573 22,243 17,417
========= ========= =========
Non-current
Secured notes:
Class
A2 6.5% 2033 280,446 286,538 292,438
A3 Floating 2035 188,500 188,500 188,500
A4 2.875% 2019 - 20,000 20,000
B 7.03% 2029 65,039 67,381 69,643
B2 Floating 2035 20,000 20,000 20,000
B3 4.250% 2024 20,000 20,000 20,000
D1(N) Floating 2035 29,054 29,054 29,054
D2 8.28% 2022 38,318 42,890 47,220
D3 4.750% 2024 70,000 70,000 70,000
Debt falling
due
after one year 711,357 744,363 756,855
Less: finance
costs (10,261) (10,812) (11,296)
--------- --------- ---------
Net loan
amount 701,096 733,551 745,559
========= ========= =========
Total
borrowings 745,669 755,794 762,976
========= ========= =========
The fair value of borrowings as at 30 June 2018 was GBP862,354,000 (31 December 2017 GBP887,686,000, 30 June 2017 GBP898,890,000).
The maturity profile of gross debt is as follows:
As at As at As at
30 June 31 December 30 June
2018 2017 2017
GBP000 GBP000 GBP000
Repayable within one year 45,497 23,179 18,342
Repayable in more than one year
but not more than two years 27,591 46,525 45,497
Repayable in more than two years
but not more than five years 89,711 92,061 89,362
Repayable in more than five years 594,056 605,077 621,996
-------- ----------- --------
756,855 766,842 775,197
======== =========== ========
The secured notes have the benefit of a floating charge over all of the assets and undertakings of the company and in addition are secured against The Trafford Centre Securitisation Agreements together with the benefit of a fixed legal charge over the land and buildings comprising The Trafford Centre granted by The Trafford Centre Limited, a fellow subsidiary undertaking of Intu Trafford Centre Group (UK) Limited and owner of intu Trafford Centre.
Interest on the Class A3, Class B2 and Class D1(N) secured notes whose rates are based on LIBOR plus an applicable margin has been hedged under interest rate swap contracts totalling
GBP237,554,000 (31 December 2017 GBP237,554,000, 30 June 2017 GBP233,716,000) with rates of 4.2%, 4.34% and 4.66% and an interest rate cap of GBPnil (31 December 2017 GBPnil, 30 June 2017 GBP3,838,000) with a capped rate of 6.66% plus an applicable margin on each bond. The fair value of these interest rate swaps at 30 June 2018 was a liability of GBP95,003,000 (31 December 2017 GBP104,867,000, 30 June 2017 GBP101,483,000).
8. Derivative financial instruments
All derivative financial instrument liabilities relate to interest rate swaps with a counterparty which are classified as held for trading. All derivative financial instrument assets relate to interest rate swap arrangements with The Trafford Centre Limited under the same terms as the interest rate swaps with the counterparty.
9. Share capital
GBP
Issued, called up and fully paid
At 30 June 2018, 31 December 2017 and 30 June 2017 - 2 ordinary
shares of GBP1 each 2
===
10. Financial instruments
The table below presents the company's financial assets and liabilities recognised at fair value at 30 June 2018, 31 December 2017 and 30 June 2017.
As at 30 June 2018
Level 1 Level 2 Level 3 Total
GBP000 GBP000 GBP000 GBP000
Assets
Derivative financial instruments:
- Fair value through profit
or loss - 95,003 - 95,003
--------- --------- ------- ---------
Total assets - 95,003 - 95,003
--------- --------- ------- ---------
Liabilities
Derivative financial instruments:
- Fair value through profit
or loss - (95,003) - (95,003)
--------- --------- ------- ---------
Total liabilities - (95,003) - (95,003)
========= ========= ======= =========
As at 31 December 2017
Level 1 Level 2 Level 3 Total
GBP000 GBP000 GBP000 GBP000
Assets
Derivative financial instruments:
- Fair value through profit
or loss - 104,867 - 104,867
--------- ---------- ------- ----------
Total assets - 104,867 - 104,867
--------- ---------- ------- ----------
Liabilities
Derivative financial instruments:
- Fair value through profit
or loss - (104,867) - (104,867)
--------- ---------- ------- ----------
Total liabilities - (104,867) - (104,867)
========= ========== ======= ==========
10. Financial instruments (continued)
As at 30 June 2017
Level 1 Level 2 Level 3 Total
GBP000 GBP000 GBP000 GBP000
Assets
Derivative financial instruments:
- Fair value through profit
or loss - 101,483 - 101,483
--------- ---------- ------- ----------
Total assets - 101,483 - 101,483
--------- ---------- ------- ----------
Liabilities
Derivative financial instruments:
- Fair value through profit
or loss - (101,483) - (101,483)
--------- ---------- ------- ----------
Total liabilities - (101,483) - (101,483)
========= ========== ======= ==========
Fair value hierarchy
Level 1: Valuation based on quoted market prices traded in active markets.
Level 2: Valuation techniques are used, maximising the use of observable market data, either directly from market prices or derived from market prices.
Level 3: Where one or more inputs to valuation are not based on observable market data. Valuations at this level are more subjective and therefore more closely managed, including sensitivity analysis of inputs to valuation models. Such testing has not indicated that any material difference would arise due to a change in input variables.
There were no transfers between Levels 1, 2 and 3 during the period.
Derivative financial instruments are initially recognised on the trade date at fair value and subsequently re-measured at fair value. In assessing fair value the company uses its judgement to select suitable valuation techniques and make assumptions which are mainly based on market conditions existing at the balance sheet date. The fair value of interest rate swaps is calculated by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for similar instruments at the measurement date. These values are tested for reasonableness based upon broker or counterparty quotes.
Classification of financial assets and liabilities
The table below sets out the company's accounting classification of each class of financial assets and liabilities, and their fair values at 30 June 2018, 31 December 2017 and 30 June 2017. The fair values of quoted borrowings are based on the asking price. The determination of the fair values of derivative financial instruments is discussed above.
Gain/(loss)
Carrying Fair to income
value value statement
As at 30 June 2018 GBP000 GBP000 GBP000
Derivative financial instrument assets 95,003 95,003 (9,728)
---------- ---------- ------------
Total held for trading assets 95,003 95,003 (9,728)
---------- ---------- ------------
Trade and other receivables 753,935 870,620 -
Cash and cash equivalents 506 506 -
---------- ---------- ------------
Total cash and receivables 754,441 871,126 -
---------- ---------- ------------
Derivative financial instrument liabilities (95,003) (95,003) 9,728
---------- ---------- ------------
Total held for trading liabilities (95,003) (95,003) 9,728
---------- ---------- ------------
Trade and other payables (143) (143) -
Borrowings (745,669) (862,354) -
---------- ---------- ------------
Total loans and payables (745,812) (862,497) -
========== ========== ============
Gain/(loss)
Carrying Fair to income
value value statement
As at 31 December 2017 GBP000 GBP000 GBP000
Derivative financial instrument assets 104,867 104,867 5,139
---------- ---------- ------------
Total held for trading assets 104,867 104,867 5,139
---------- ---------- ------------
Trade and other receivables 766,196 898,088 -
Cash and cash equivalents 467 467 -
---------- ---------- ------------
Total cash and receivables 766,663 898,555 -
---------- ---------- ------------
Derivative financial instrument liabilities (104,867) (104,867) (5,139)
---------- ---------- ------------
Total held for trading liabilities (104,867) (104,867) (5,139)
---------- ---------- ------------
Trade and other payables (1,835) (1,835) -
Borrowings (755,794) (887,686) -
---------- ---------- ------------
Total loans and payables (757,629) (889,521) -
========== ========== ============
Gain/(loss)
Carrying Fair to income
value value statement
As at 30 June 2017 GBP000 GBP000 GBP000
Derivative financial instrument assets 101,483 101,483 (8,567)
---------- ---------- ------------
Total held for trading assets 101,483 101,483 (8,567)
---------- ---------- ------------
Trade and other receivables 773,438 773,438 -
Cash and cash equivalents 426 426 -
---------- ---------- ------------
Total cash and receivables 773,864 773,864 -
---------- ---------- ------------
Derivative financial instrument liabilities (101,483) (101,483) 8,567
---------- ---------- ------------
Total held for trading liabilities (101,483) (101,483) 8,567
---------- ---------- ------------
Trade and other payables (1,802) (1,802) -
Borrowings (762,976) (898,890) -
---------- ---------- ------------
Total loans and payables (764,778) (900,692) -
========== ========== ============
11. Cash (used in)/generated from operations
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
Profit before tax 3 31 50
Remove:
Finance income (23,054) (24,427) (48,640)
Finance costs 23,037 24,386 48,559
Changes in working capital:
Change in trade and other receivables 1,708 194 (2,656)
Change in trade and other payables (1,697) 71 972
---------- ---------- -----------
Cash (used in)/generated from
operations (3) 255 (1,715)
========== ========== ===========
12. Related party transactions
There have been no related party transactions during the period that require disclosure under Section DTR 4.2.8 R of the Disclosure Guidance and Transparency Rules sourcebook or under IAS 34 Interim Financial Reporting except those disclosed elsewhere in this condensed set of interim financial statements.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR UBVSRWOAKAAR
(END) Dow Jones Newswires
September 17, 2018 10:55 ET (14:55 GMT)
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