Financial Statements Notes to the consolidated financial statements continued for the year ended 31 March 2021
18. Loans and borrowings continued The following table provides a reconciliation of the movement in loans and borrowings to cash flows arising from financing activities. 2021 £000
2020 £000
165,136 191,969
Balance as at 1 April
Changes fromfinancing cash flows Proceeds from loans and borrowings Repayment of loans and borrowings
–
6,000
(1,258) (33,204) – (1,832) (27,204) (574)
Financing costs paid
Other changes Amortisation of financing costs Accrued financing costs
531 (180)
371
–
351
371
Balance as at 31 March 163,655 165,136 The Group has an £80 million term loan facility with Canada Life Limited which matures in July 2027. Interest is fixed at 4.08% over the life of the loan. The loan agreement has a loan to value covenant of 65% and an interest cover test of 1.75. The loan is secured over the Group’s properties held by Picton No 2 Limited Partnership and Picton UK Real Estate Trust (Property) No 2 Limited, valued at £330.0 million (2020: £307.5 million). Additionally, the Group has a £95.3 million term loan facility with Aviva Commercial Finance Limited which matures in July 2032. The loan is for a term of 20 years and was fully drawn on 24 July 2012 with approximately one-third repayable over the life of the loan in accordance with a scheduled amortisation profile. The Group has repaid £1.3 million in the year (2020: £1.2 million). Interest on the loan is fixed at 4.38% over the life of the loan. The facility has a loan to value covenant of 65% and a debt service cover ratio of 1.4. The facility is secured over the Group’s properties held by Picton No 3 Limited Partnership and Picton Property No 3 Limited, valued at £184.9 million (2020: £189.0 million). In May 2020 the Group entered into a new £50 million revolving credit facility (‘RCF’) with National Westminster Bank Plc; this replaces the facilities held with Santander Corporate & Commercial Banking which have been cancelled. The new facility is for an initial term of three years with the option of two, one-year extensions. Currently undrawn, the RCF will incur interest at 150 basis points over LIBOR on drawn balances and an undrawn commitment fee of 60 basis points. The facility is secured on properties held by Picton UK Real Estate Trust (Property) Limited, valued at £131.7 million. The fair value of the drawn loan facilities at 31 March 2021, estimated as the present value of future cash flows discounted at the market rate of interest at that date, was £187.2 million (2020: £197.0 million). The fair value of the secured loan facilities is classified as Level 2 under the hierarchy of fair value measurements. There were no transfers between levels of the fair value hierarchy during the current or prior years. The weighted average interest rate on the Group’s borrowings as at 31 March 2021 was 4.2% (2020: 4.2%). 19. Contingencies and capital commitments The Group has entered into contracts for the refurbishment of 11 properties with commitments outstanding at 31 March 2021 of approximately £6.7 million (2020: £4.5 million). No further obligations to construct or develop investment property or for repairs, maintenance or enhancements were in place as at 31 March 2021 (2020: £nil). 20. Share capital and other reserves 2021 £000 2020 £000
Authorised: Unlimited number of ordinary shares of no par value
–
–
Issued and fully paid: 547,605,596 ordinary shares of no par value (31 March 2020: 547,605,596)
–
–
164,400 164,400
Share premium
The Company has 547,605,596 ordinary shares in issue of no par value (2020: 547,605,596).
120
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