Masawara Plc Final Results -31-
30 Abril 2015 - 1:01AM
UK Regulatory
associate - TA Holdings Limited 28.1 (2,542) 3,230
Gain on bargain purchase of
additional shares in an associate 28.1 - (761)
Share of loss of associate
- Telerix Communications 28.3 (534) 1,194
Share of profit of other associates 28 (780) (75)
Gain on bargain purchase of
TA Holdings Limited 8 (9,973) -
Net realized and unrealized
gains/(losses) 15 (4,933) 2,229
Gain on bargain purchase of
Minerva Holdings (Private)
Ltd - (241)
Depreciation 20 369 57
Loss on disposal of investments 20 4 -
Amortisation of intangible
assets 20 14
Insurance claims recovered
from reinsurers 18.4 2,603
Loan forgiveness - 192
Share-based payment transaction
expense 37 311 734
Finance cost 758 156
Finance income (1,909) (1,100)
Unrealized exchange losses 1 7
Working capital adjustments:
Increase in inventory (13) -
Increase in reinsurance receivables (1,744) -
Decrease in insurance receivables 2,174 -
Decrease in trade and other
receivables 291 36
Increase in insurance contract
liabilities 1,165 -
Decrease in deferred income (73) -
Increase in insurance payables (2,122)
Increase in loans to Directors
and employees (566) (280)
(Decrease)/increase in other
payables (2,502) 242
--------- ---------
Cash generated from operating
activities (3,607) (4,063)
--------- ---------
46 Financial risk management
The primary objective of the Group's risk management framework
is to protect the Group's shareholders from events that hinder the
sustainable achievement of financial performance objectives,
including failing to exploit opportunities. Key management
recognises the critical importance of having efficient and
effective risk management systems in place.
The Group is exposed to financial risk through its financial
assets and financial liabilities. The Group's principal financial
liabilities comprise bank loans and overdrafts, trade payable,
other loans and insurance contract liabilities. The main purpose of
these financial liabilities is to raise finance for the Group's
operations. The Group has various financial assets such as shares
in listed and unlisted entities, trade receivables and cash and
short-term deposits, which arise directly from its operations.
The Group's policy is to manage financial risk separately
through its operations subject to monitoring by the Group Treasurer
and the Investment Committee. The risks arising from policyholder
and shareholder financial instruments are similar in nature, as
such no distinction has been made in assessing the quantitative
effects of the financial risks emanating from these financial
instruments.
The policies for managing each of these risks are summarized
below:
46.1 Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or customer contract,
leading to financial loss. The Group is exposed to credit risk from
its leasing activities, loans and receivables, investments in debt
securities, insurance policyholders, amounts due from underwriting
agencies and brokers, reinsurance assets and from deposits with
banks. Credit risk is minimized by requiring tenants to pay rentals
in advance. The credit quality of customers is assessed based on a
credit rating scorecard at the time of entering into a lease
agreement. Outstanding receivables are regularly monitored and
followed up.
The Group's share of outstanding tenants' receivables as at 31
December 2014 was $385,000 (2013: $305,000) of which 31% (2013:
78%) had been owed for 30 days and below. 7% of the outstanding
tenants' receivables as at 31 December 2014 had been owed for
between 30 days and 60 days, 7% had been owed for between 60 days
and 90 days, and 55% had been owed for between 90 days and 120
days. There were no past due but not impaired tenant's receivables
at 31 December 2014 (2013: $nil).
With respect to credit risk arising from other financial assets
of the Group, which comprise cash and cash equivalents, loans and
receivables and debt securities, the Group's exposure to credit
risk arises from default of the counterparty, with a maximum
exposure equal to the carrying amount of these instruments at the
reporting date, of $64 million (2013: $nil).
As of 31 December 2014, trade receivables of $5.8 million (2013:
$nil) were past due but not impaired. The ageing analysis of these
trade receivables is as follows:
2014 2013
US$ US$
Up to 3 months 1,613 -
3 to 6 months 4,201 -
------ -----
Total 5,814 -
------ -----
The Group has no significant concentration of credit risk.
The credit quality of cash at banks can be assessed by reference
to external credit ratings (if available) or to historical
information about counterparty default rates. The following
2014 2013
US$ '000 US$ '000
Cash at banks and short-term bank
deposits
AA+ 2,564 -
AA 1 -
AA- 7,749 27
A+ 1,489 2
A- 146
BBB 4,237 17
BB+ 57 4
LD 79 -
Unrated (rating not available) 1,901 -
--------- ----------
18,223 50
Cash in hand 77 -
Total cash and cash equivalents 18,300 50
--------- ----------
Investment
grade Description
AA+
AA
Very high credit quality. Protection factors
are very strong. Adverse changes in business,
economic or financial conditions would increase
AA- investment risk although not significantly
A+
High credit quality. Protection factors
are good. However, risk factors are more
variable and greater in periods of economic
A- stress.
BBB
Adequate protection factors and considered
sufficient for prudent investment. However,
there is considerable variability in risk
during economic cycles.
Below investment grade but capacity for
timely repayment exists. Present or prospective
financial protection factors fluctuate according
industry conditions or company fortunes.
Overall quality may move up or down frequently
BB+ within this category
Defaulted on one or more of its obligations,
failing to meet the schedule principal and/or
interest payments (LD). Defaulted on all
obligations, or is likely to default on
all or substantially all scheduled principal
LD and/or interest payments (DD)
The financial institutions in this category
do not have ratings. Based on management's
experience with these institutions their
financial performance has been stable and
their generally adopt a prudent approach
Unrated to liquidity management.
46.2 Liquidity risk
Liquidity risk is the risk that the meet its financial
obligations as they fall due. The Group's exposure to liquidity
risk relates mainly to borrowings, investment contracts and their
liabilities, insurance contracts and their liabilities and trade
and other payables.
The Group's approach to managing liquidity is to ensure, as far
as possible, that it will always have sufficient liquidity to meet
its liabilities as they fall due, without incurring unacceptable
losses or risking damage to the Group's reputation. The Group
manages liquidity risk by maintaining adequate cash resources and
banking facilities and by continuously monitoring forecast and
actual cash flows.
The table below summarises the maturity profile of the Group's
financial liabilities at 31 December 2014:
Maturity profile for liabilities
Masawara (LSE:MASA)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Masawara (LSE:MASA)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
