|Cash and cash equivalents||36,966||14,685||33,483||8,558|
|Bank term loan — amount payable within one year (GBP)||–||(4,000)||–||(4,000)|
|Obligations under finance leases — amounts payable within one year||(2)||(3)||–||–|
|Bank term loan repayable between one and three years (GBP)||–||(2,000)||–||(2,000)|
|Revolving loan repayable by October 2013 (USD)||–||(36,335)||–||(36,335)|
|Revolving loan repayable by October 2013 (GBP)||–||(10,000)||–||(10,000)|
On 1 June 2012, the Group cancelled its GBP term loan and revolving credit facilities. On the same day, the Group signed a $56m multicurrency revolving facility and a £40m multicurrency revolving facility. Under the terms of the refinancing, the Group also has a £25m "accordian" facility, by which further facilities may be made available by RBS and HSBC under the current terms to support significant investment or acquisition opportunities which may arise. The new facilities expire in November 2016 and have interest and covenant terms similar to the cancelled facilities.
In February 2013 Group borrowings of £47.1m were repaid using the funds obtained from the disposal of King Systems (see note 28). At the same time the Group's interest rate swap instruments were cancelled because the Group no longer had floating rate interest payable. These comprised:-
- two three-year interest rate swaps for a total notional amount of $40m commencing in January 2011. Under the terms of the swaps the Company received interest on a variable rate basis and paid interest fixed at 1.483%, plus bank margin;
- an interest rate swap on $7.5m commencing on 28 April 2011 and expiring on 31 January 2014. Under the terms of the swap the Company received interest on a variable rate basis and paid interest fixed at 1.5275%, plus bank margin;
- an amortising interest rate swap for £10m commencing on 28 April 2011 and expiring on 31 October 2013. Under the terms of the swap the Company received interest on a variable rate basis and paid interest fixed at 1.775%, plus bank margin.
All borrowings and loan facilities are unsecured. The bank loans and overdrafts are subject to cross-guarantees between Group undertakings.
Interest on the multicurrency revolving credit facility is charged at LIBOR plus a margin of between 2.00% and 3.00%, depending upon the ratio of net debt to EBITDA (earnings before interest, tax, depreciation and amortisation), and on UK overdrafts at 1.75% above UK base rate.
Reconciliation of net cash flow to movement in net cash/(debt)
|Net debt at the beginning of the year||(37,653)||(33,755)|
|Net increase in cash and short-term borrowings||22,356||7,077|
|Proceeds from new bank funding||(3,000)||(14,144)|
|Repayment of amounts borrowed||57,069||4,020|
|Finance lease payments||1||8|
|Effects of exchange rate changes||(1,809)||(859)|
|Net cash/(debt) at the end of the year||36,964||(37,653)|