One Heritage Group plc: Annual results for -12-

0
Payment of lease liabilities                           -                 (18,534)    -         -           (18,534) 
Total changes from financing cash flows                16,745,192        (18,534)    -         -           16,726,658 
Changes arising from obtaining or losing control of    -                 -           -         -           - 
subsidiaries or other businesses 
Other changes 
Liability related 
New leases                                             -                 154,149     -         -           154,149 
Capitalised borrowing costs                            285,817           -           -         -           285,817 
Interest expense                                       59,072            5,356       -         -           64,428 
Interest paid                                          (344,889)         -           -         -           (344,889) 
Total liability-related other changes                  -                 159,505     -         -           159,505 
Total equity-related other changes                     -                 -           -         -           - 
Balance as at 30 June 2021                             16,745,192        140,971     -         -           16,886,163 21. Trade and other payables 
                             30 June 2021 30 June 2020 
GBP unless stated 
                                          Unaudited 
Trade payables              549,317        378,417 
Accruals and prepayments    56,341         283,650 
Provision                   24,368        - 
PAYE payable                19,325         3,947 
                            649,351        666,014 

Trade payables and accrued liabilities correspond to amounts payable at the balance sheet date for services received during the period.

During the year, the Group made provisions for dividends received from an associate (note 16).

The company has financial risk management policies in place to ensure that all payables are paid on time credit.

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated upon consolidation and are not disclosed in this note. 22. Financial instruments – fair value and risk management

Accounting classifications and fair values

The following table presents the carrying amounts and fair values ​​of financial assets and liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

As of June 30, 2021

                                   Carrying value                                           Fair value 
                                                            Other 
GBP unless stated                    Financial assets at                      Total     Level 1 Level Level 3   Total 
                                   amortised cost           financial                         2 
                                                            liabilities 
Financial assets not measured at 
fair value 
Trade and other receivables        667,759                  -               667,759   -       -     667,759   667,759 
Cash and cash equivalents          204,147                  -               204,147   204,147 -     -         204,147 
                                   871,906                  -               871,906   204,147 -     667,759   871,906 
Financial liabilities not measured 
at fair value 
Secured bank loans                 -                        959,410         959,410   -       -     959,410   959,410 
Related party borrowings           -                        4,218,063       4,218,063 -       -     4,218,063 4,218,063 
Lease liability                    -                        402,709         402,709   -       -     402,709   402,709 
Trade and other payables           -                        649,351         649,351   -       -     649,351   649,351 
                                   -                        6,229,533       6,229,533 -       -     6,229,533 6,229,533 
 

As of June 30, 2020 (unaudited)

                                  Carrying value                                  Fair value 
                                                          Other 
GBP unless stated                   Financial assets at                    Total      Level 1 Level Level 3    Total 
                                  amortised cost          financial                         2 
                                                          liabilities 
Financial assets not measured at 
fair value 
Trade and other receivables       132,622                 -              132,622    -       -     132,622    132,622 
Cash and cash equivalents         711,798                 -              711,798    711,798 -     -          711,798 
                                  844,420                 -              844,420    711,798 -     132,622    844,420 
Financial liabilities not 
measured at fair value 
Secured bank loans                -                       4,770,000      4,770,000  -       -     4,770,000  4,770,000 
Unsecured bank loans              -                       -              -          -       -     -          - 
Related party borrowings          -                       12,872,194     12,872,194 -       -     12,872,194 12,872,194 
Lease liability                   -                       140,971        140,971    -       -     140,971    140,971 
Trade and other payables          -                       666,014        666,014    -       -     666,014    666,014 
                                  -                       18,449,179     18,449,179 -       -     18,449,179 18,449,179 
 

Significant unobservable valuation technique and inputs

The following tables present the valuation techniques used to measure the level 2 and level 3 fair values ​​of financial instruments in the statement of financial position, as well as the main unobservable inputs used.

Financial instruments measured at fair value.

The valuation is equivalent to the cost because it can be reimbursed at any time by the borrower and therefore no sensitivity is provided.

Financial risk management

The Group is exposed to the following risks related to financial instruments:

– Credit risk

– Liquidity risk

– Market risk

Risk management framework

The Company’s Board of Directors has overall responsibility for establishing and monitoring the Group’s risk management framework. The Board of Directors has set up the Risk Management Committee, which is responsible for developing and monitoring the Group’s risk management policies. The committee reports regularly to the board of directors on its activities.

The Group’s risk management policies are established to identify and analyze the risks facing the Group, to set appropriate risk limits and controls and to monitor risks and compliance with limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and in the Group’s activities. The Group, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group’s audit committee supervises the way in which management monitors compliance with the Group’s risk management policies and procedures and examines the adequacy of the risk management framework in relation to the risks facing the Group.

Credit risk

Credit risk is the risk of financial loss when counterparties are unable to meet their obligations. The Group’s policy is that excess liquidity, when not used to repay loans, is deposited with the Group’s main relational banks and with other banks or money market funds on the basis of a minimum credit rating. and maximum exposure.

Significant concentrations of credit risk relate to related parties (see notes 17, 18 and 25).

Management considers that the credit quality of the various receivables is good in relation to the outstandings and therefore the credit risk is considered low.

The book value of financial assets represents the Group’s maximum exposure to credit risk at the balance sheet date, assuming that any security held has no value.

Cash and cash equivalents

The Group had cash and cash equivalents of 204,147 as of June 30, 2021 (2020: 711,798).

Bank                  Amount held (GBP) Standard and Poor's Moody's Fitch 
Barclays Bank UK Plc  197,064         A                   A1      A+ 
Bank of China         4               A+                  AA3     A 
Santander Bank        6,445           A                   A2      A- 

The Group also holds a petty cash of 634 GBP as of June 30, 2021 (June 30, 2020: GBP 1,000).

Guarantees

The Group’s policy is to provide financial guarantees only for the liabilities of subsidiaries. As at June 30, 2021, the Company has issued a guarantee to certain banks in respect of the credit facilities granted to One Heritage Oscar House Limited 122,447 GBP (30 June 2020: nil) and One Heritage Lincoln House Limited, 770,000 GBP (30 June 2020: GBP 770,000), subsidiaries, see note 20.

Liquidity risk

Liquidity risk is the risk that the Group does not have sufficient financial resources to meet its obligations as they fall due. The Group manages liquidity risk by constantly monitoring expected and actual cash flows, by matching the expected cash flow maturities of financial assets and liabilities with the use of cash and cash equivalents, borrowings, overdrafts and revolving credit facilities committed with a minimum of 12 months to maturity.

Future borrowing needs are forecast on a monthly basis and the cash flow is maintained above peak expected needs to deal with unforeseen events. As of June 30, 2021, the Group’s loans and facilities have a range of maturities with an average term of 19 months.

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October 20, 2021 02:00 ET (06:00 GMT)


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