41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 215
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
213
OTHER INFORMATION
Section 4: Funding
The Group finances its development and investment activities through a mixture of retained earnings,
borrowings and equity. The Group continuously monitors its financing arrangements to manage its gearing.
Interest rate swaps are used to manage the Group’s risk to fluctuations in interest rate movements.
The following pages provide disclosures about the Group’s funding position, including borrowings, gearing and
hedging instruments; its exposure to market risks; and its capital management policies.
Accounting policies
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes
a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value, less any attributable transaction costs,
and subsequently at amortised cost.
With the exception of investments in subsidiaries and derivative financial instruments, no other financial assets or
liabilities have been classified as either fair value through profit or loss or fair value through other comprehensive income.
The accounting policies applicable to specific financial assets and liabilities, and financing costs, are set out in
the relevant notes.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on trade receivables.
The Accounting Policy is set out in full in note 5.2.
Derivative financial instruments
The Group enters into derivative financial instruments to manage its exposure to interest rate risk. Further details
of derivative financial instruments, including the relevant accounting policies, are disclosed in notes 4.2 and 4.5.
4.1 Borrowings
Accounting policies
Interest bearing borrowings are recognised initially at fair value, less attributable transaction costs. Subsequent to initial
recognition, interest bearing borrowings are stated at amortised cost with any difference between cost and redemption
value being recognised in the income statement over the period of the borrowings on an effective interest basis.
The table below analyses the Group’s borrowings which comprise bank and other loans by when they fall due for payment:
Group – Carrying value
Company – Carrying value
2022
£m
2021
£m
2022
£m
2021
£m
–
–
–
–
In more than one year but not more than two years
298.7
–
–
–
In more than two years but not more than five years
228.0
419.2
228.0
121.3
In more than five years
721.1
719.0
421.6
420.9
1,247.8
1,138.2
649.6
542.2
18.1
23.8
–
–
1,265.9
1,162.0
649.6
542.2
Current
In one year or less
Non-current
Unamortised fair value of debt recognised on acquisition
Total borrowings
In addition to the borrowings currently drawn as shown above, the Group has available undrawn facilities of £368.0 million
(2021: £325.0 million). A further overdraft facility of £10.0 million (2021: £10.0 million) is also available.
The Group repaid only unsecured borrowing at 31 December 2022 and 31 December 2021.
