Annual Report 2016 - Page 76

Annual Report 2016 Notes to the Financial Statements 27 Non-controlling Interests 28 2016 2015 £’000 £’000 At 1 April Profit on ordinary activities after taxation Acquisition in the year 82 60 86 22 (37) — At 31 March 131 82 Financial Assets and Liabilities The Group’s financial assets and liabilities include cash, loans receivable, borrowings, derivative financial assets and liabilities, trade creditors and trade debtors. Borrowings as at 31 March 2016 represent bank term loans, private placement loan notes, finance lease obligations, index-linked debt and irredeemable debenture stock. The purpose of the Group's borrowings is to finance the Group’s operations. It is, and has been throughout the year and the previous year under review, the Group’s policy that no trading in financial instruments shall be undertaken. The Group’s policy in respect of cash, loans receivable and borrowings is to maintain flexibility with both fixed and floating interest rates and long and short-term debt while not exposing the Group to significant risk of market movements (see below). As at 31 March 2016, derivative financial liabilities represent floating to fixed interest rate swaps used as cash flow hedges to reduce the Group’s risk to changes in LIBOR. Interest Rate Risk Profile Borrowings 2016 2015 £’000 £’000 Retail Price Index-linked debt Fixed rate financial liabilities Floating rate financial liabilities 212,046 142,875 17,200 205,978 104,933 43,436 372,121 354,347 The floating rate borrowings comprise sterling denominated short-term bank loans (revolving credit facilities) that bear interest at rates based on LIBOR. As at 31 March 2015, these included £35,000,000 of loans that are floating rate but floating to fixed interest rate swaps had been entered into in respect of these loans that commence cash flows in October 2015 when these loans effectively became fixed rate when combined with these swaps and have been reported above as fixed rate as at 31 March 2016. Fixed rate financial liabilities include fixed rate bank term loans of £15,763,000 (2015: £15,763,000) and floating rate bank term loans wit [\[[Y\و0 K  MN0 L H]\HYX][H\Y^Y]HB\Y\\[][^Y[\\]H\\H\[\H\]H[Y[Y Hܛ\ YHXܜ[YBܙY]ܜ\HXX[\\[\ۜY\YHݙ\YK܈[[[X[\][XX[]Y\H[Y\[Z\[Y\\HX]\X[HY\[ ^\܈H0LLK  MN0LLK B]Z[XH[^ [[Y[XYH[YH] HX\ Mو0M L  MN0M N K[HZ\[YHو0̍ ͌  MN̎ K H[H0K  MN0K H]Z[XH[^ [[YۙXYH[YH] HX\ Mو0 M  MN H[HZ\[YHو0 K  MN0 K^Y]Hܜ[BBBBZYYBZYY]\YBBB]\YBB\[܈XBB[\\]BB]H\^YBH BVYX\Œ MB\[BLˎH ˌŒ MB\[BLˎBH ˌBBBܜ[X[]Y\•Hܛ\\\[\ܜ[X[]Y\]Z[XH] H[]ۈ[Z]YX[]Y\]Z[XH] HX\ M\H\΂BBBB MBBBBB&L B^\[[ۙHYX\܈\BBBB^\[[[ܙH[ۙHYX\][ܙH[YX\BBBB^\[[[ܙH[YX\][ܙH[]HYX\BBBB%BBK B MB&L L L B%BK BBBBLK M B