McPHERSON’S LIMITED

 ANNUAL REPORT 2015  



  

75

Under the terms of the borrowing facilities the Group is required to comply with the following key financial covenants:

 

•The secured leverage ratio must not exceed 2.50 times on the secured bank facility;

 

•The total leverage ratio must not exceed 4.50 times;

 

•The interest cover ratio must not be less than 3.50 times; and 

 

•Total Shareholder funds must not be less than $80,000,000.

NOTE 25.   RESERVES AND RETAINED EARNINGS

(A) RESERVES

2015

$’000

2014

$’000

Hedging reserve – cash flow hedges

888

(3,417)

Share-based payments reserve

1,373

1,409

Foreign currency translation reserve

672

(577)

2,933

(2,585)

Hedging reserve – cash flow hedges:

Balance 1 July

(3,417)

2,161

Revaluation – gross

1,276

(3,048)

Deferred tax (Note 17, 23)

(369)

912

Transfer to cost of sales - gross

2,913

(5,096)

Deferred tax (Note 17, 23)

(870)

1,522

Transfer to finance costs - gross

1,936

189

Deferred tax (Note 17, 23)

(581)

(57)

Balance 30 June

888

(3,417)

Share-based payments reserve:

Balance 1 July

1,409

1,281

Share-based payments 

(36)

128

Balance 30 June

1,373

1,409

Foreign currency translation reserve:

Balance 1 July

(577)

(2,041)

Currency translation differences arising during the year

1,249

1,464

Balance 30 June

672

(577)

(B) (ACCUMULATED LOSSES) / RETAINED EARNINGS

2015

$’000

2014

1

$’000

Balance 1 July

(51,653)

27,277

Profit / (loss) after tax

8,840

(67,039)

Dividends provided for or paid

(10,573)

(11,891)

Balance 30 June

(53,386)

(51,653)

1. See Note 1(A) for details regarding the restatement as a result of an error