Annual Reports Keepmoat Homes Annual Report 2018 | Page 63

Notes to the consolidated financial statements
Keepmoat.com
25 – Financial instruments (continued)
Currency risk
The Group operates entirely in the United Kingdom and all of the Group’s revenue is generated in the United Kingdom and
is denominated in pounds sterling. Consequently the Group has very limited exposure to currency risk.
Fair values of financial instruments
Trade and other receivables
The fair value of trade and other receivables, excluding construction contract receivables, is estimated as the present value
of future cash flows, discounted at the market rate of interest at the balance sheet date if the effect is material. The carrying
amount of trade and other receivables is a reasonable approximation of their fair value.
Trade and other payables
The fair value of trade and other payables, excluding construction contract payables, is estimated as the present value of
future cash flows, discounted at the market rate of interest at the balance sheet date if the effect is material. The carrying
amount of trade and other payables is a reasonable approximation of their fair value.
Cash and cash equivalents
The fair value of cash and cash equivalents is estimated at its carrying amount where the cash is repayable on demand.
Set out below is a comparison by category of carrying amounts and fair values of all the Group’s financial instruments:
2018
2017
Carrying
amount Fair
value Carrying
amount Fair
value
Note £’000 £’000 £’000 £’000
Cash at bank and in hand 15 40,230 40,230 41,427 41,427
Trade and other receivables 14 100,573 100,573 143,261 143,261
140,803 140,803 184,688 184,688
16 250,158 250,158 185,920 185,920
Bank overdraft 18 996 996 9,595 9,595
Bank loans 18 - - 798 798
Other loans 18 6,275 6,275 5,991 5,991
257,429 257,429 202,304 202,304
Loans and receivables
Financial liabilities at amortised cost
Trade and other payables
Loans and borrowings
Interest paid on financial liabilities is shown in note 5.
Prepayments and accrued income are excluded from the trade and other receivables balances. Accruals and deferred
income, non-cash land commitments and statutory liabilities are excluded from trade and other payables as these are not
financial instruments.
Borrowing facilities
At 31 March 2018, the wider Keystone JVco Group had committed borrowing facilities totalling £75,000,000 (2017:
£75,000,000) representing revolving credit facilities and overdraft, which are due for renewal on 31 March 2019. At 31
March 2018 the Group had bank borrowings under the revolving credit facility of £37,500,000 (2017: £5,000,000) and bank
overdrafts of £1,868,000 (2017: £20,561,000). The Group therefore had undrawn facilities totalling £35,632,000 (2017:
£49,439,000). Revolving credit facilities bear interest at 3.0% over LIBOR whilst cash overdrafts are 4.5% over Bank of
England base rate. Performance bonds attract interest at a flat rate of 3.75%.
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