REG-Matchtech Group PLC Final Results - Part 4

Released : 14/10/08 06:00

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Part 4 : For preceding part double click [nRn3N7516F]  
  25/04/2008      SIP    2.88                               0.01             N/A          3.00             N/A              N/A                          2.88        
  30/05/2008      SIP    2.97                               0.01             N/A          3.00             N/A              N/A                          2.97        
  27/06/2008      SIP    2.90                               0.01             N/A          3.00             N/A              N/A                          2.90        
  25/07/2008      SIP    2.68                               0.01             N/A          3.00             N/A              N/A                          2.68        
  
  
- The volatility of the Company's share price on each date of grant was 
calculated as the average of annualized standard deviations of daily 
continuously compounded returns on the Company's stock, calculated over 5 years 
back from the date of grant, where applicable.  
  
- The risk free rate is the yield to maturity on the date of grant of a UK Gilt 
Strip, with term to maturity equal to the life of the option.  
  
- The IFRS2 charge for the year ended 31st July 2008 is £538,916 (2007: 
£320,948)  
  
22    TRANSACTIONS WITH DIRECTORS AND RELATED PARTIES  
  
The company was under the direction of G D P Materna, A P Gunn, A S Dyer, P J 
Raine and A F White throughout the period. As disclosed in the Directors' 
Report, the directors are each personally interested in 33.9%, 1.7%, 1.1%, 7.9% 
and 4.7% respectively, of the company's issued share capital.  
  
There were no material related party transactions with the directors during the 
period.    
  
With the exception of dividends paid from Matchtech Group UK Limited to 
Matchtech Group PLC of £2,148,431 on 27th November 2007 and £1,160,666 on 19th 
June 2008 there are no other related party transactions in the company 
accounts.  
  
23    FINANCIAL INSTRUMENTS  
  
The financial risk management policies and objectives including those related to 
financial instruments and the qualitative risk exposure details, comprising 
credit and other applicable risks, are included within the Finance Director's 
report under the heading Group financial risk management.  
  
Maturity of financial liabilities  
  
The group financial liabilities analysis at 31July 2008 was as follows:  
  
 
                                                     GROUP           COMPANY        
                                                     2008    2007    2008    2007   
                                                     £'000   £'000   £'000   £'000  
                                                                                    
  In less than one year or on demand:                109     176     0       0      
  Bank overdrafts                                    -       1,667   0       0      
  Bank loans                                         -       -       0       0      
  Revolving credit facility                          3,240   6,747   0       0      
  Working capital facility                           3,349   8,590   0       0      
                                                                                    
  In more than one year but less than two years:                                    
  Bank and other borrowings                          0       1,666   0       0      
                                                                                    
                                                                                    
  In more than two years but less than five years:                                  
  Bank and other borrowings                          0       417     0       0      
                                                                                    
  
  
Borrowing facilities  
  
(i) The bank loan was fully repaid in 2008 and replaced by a revolving credit 
facility whereby the Group may borrow up to £7.5 million subject to satisfaction 
of the requirements of the facility. The interest rate of the loan is set at 
1.1% above the LIBOR lending rate. The maturity date is set by interest period 
at the commencement of the loan. Each advance is repaid on that date but the 
revolving facility allows any amount repaid to be available for redrawing.  
  
(ii) The undrawn facility available at 31 July 2008 of the Working Capital 
facility in respect of which all conditions precedent had been met was as 
follows:  
  
 
                                 Group            
                                 2008     2007    
                                 £'000    £'000   
                                                  
  Expiring in one year or less   16,760   13,253  
  
  
The working capital facility is secured on the total assets of the group as 
explained in note 17.  
  
The working capital facility was reviewed by the facility providers in September 
2008 and renewed for a further twelve months.  
  
The Directors have calculated that the approximate effect of a 1% movement in 
interest rates would be £100,000.  
  
The Directors believe that the carrying value of borrowings approximates to 
their fair value.  
  
Net foreign currency monetary assets  
  
 
          Group          
          2008    2007   
          £'000   £'000  
                         
  Euros   19      138    
  
  
In the Directors' opinion, the exposure to Foreign Currency risk and Interest 
Rate risk is not material to the Group and has therefore not included 
sensitivity analyses in these areas.  
  
24    STANDARDS AND INTERPRETATIONS IN ISSUE, NOT YET EFFECTIVE  
  
The following new Standards and Interpretations, which are yet to become 
mandatory, have not been applied in the Group financial statements.  
  
 
  Standard                                                                       Effective date          
                                                                                 (Annual periods         
                                                                                 beginning on or after)  
                                                                                                         
  IFRIC 13          Customer Loyalty Programmes                                  1 July 2008             
                                                                                                         
  IFRIC 12          Service Concession Arrangements                              1 January 2008          
                                                                                                         
  IAS 23            Borrowing Costs (revised 2007)                               1 January 2009          
                                                                                                         
  IFRS 8            Operating Segments                                           1 January 2009          
                                                                                                         
  IAS 27            Consolidated and Separate Financial Statements (revised      1 July 2009             
                    2008)                                                                                
                                                                                                         
  IAS 1             Presentation of Financial Statements (revised 2007)          1 January 2009          
                                                                                                         
  IAS 32            Financial Instruments: Presentation                          1 January 2009          
                                                                                                         
  IFRS 2            Share-based Payment - Vesting Conditions and Cancellations   1 January 2009          
                                                                                                         
  IFRS 3            Business Combinations (revised 2008)                         1 July 2009             
                                                                                                         
  IFRS 1 & IAS 27   Consolidated and Separate Financial Statements - Costs of    1 January 2009          
                    Investment ina Subsidiary, Jointly Controlled Entity or                              
                    Associate                                                                            
                                                                                                         
  IAS 39            Amendment - Financial Instruments: Recognition and           1 July 2009             
                    Measurement - Eligible Hedged Items                                                  
                                                                                                         
  IFRIC 16          Hedges of a Net Investment in a Foreign Operation            1 October 2008          
                                                                                                         
  
  
Based on the Group's current business model and accounting policies, management 
does not expect material impacts on the figures in the Group's financial 
statements when the interpretations become effective. Management does anticipate 
a significant impact on disclosures in the financial statements arising from IAS 
1 (revised 2007).  
  
The Group does not intend to apply any of these pronouncements early.  
  
25 CAPITAL MANAGEMENT POLICIES AND PROCEDURES  
  
Matchtech Group PLC's capital management objectives are:  
  
- to ensure the Group's ability to continue as a going concern; and to provide 
an adequate return to shareholders.  
  
- by pricing products and services commensurately with the level of risk.  
  
The Group monitors capital on the basis of the carrying amount of equity.  
  
26 EQUITY  
  
For the purpose of preparation of the consolidated financial statements of the 
Group, the share capital represents the nominal value of the issued share 
capital of Matchtech Group PLC. Share premium represents the excess over nominal 
value of the fair value of consideration received for equity shares, net of 
expenses of the share issue.  
  
The share based payment reserve represents equity-settled share-based payments 
until such share options are exercised.  
  
Foreign currency translation reserve represents the differences arising from 
translation of investments in overseas subsidiaries.  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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