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ANNUAL REPORT 2011/2012
Notes to the Financial Statements
29 Share Capital (Cont’d)
Capital management (Cont’d)
The Group manages its capital to ensure entities in the Group will be able to continue as going
concerns while maximising the return to shareholders through optimisation of the debt and equity
balance. The Group actively reviews its capital structure and considers the cost of capital and the
risks associated with each class of capital. The Group balances its overall capital structure through
the payment of dividends, share buy-back, new share issues as well as the issue of new debt or
the redemption of existing debt.
There were no changes in the Group’s approach to capital management during the fnancial year.
30 Long-Term Bank Borrowings
THE GROUP
2012
$’000
2011
$’000
Bank loans 353,488 510,955
Less: Current portion (130,675) (184,303)
Non-current portion 222,813 326,652
Non-current portion is payable as follows:
Between 1 and 2 years 222,813 130,105
Between 2 and 5 years – 196,547
222,813 326,652
The term loans as at 31 March 2012 comprise:
(a) $124,203,000 (A$95,000,000) [2011: $123,662,000 (A$95,000,000)] and $25,406,000
(NZ$24,620,000) [2011: $39,163,000 (NZ$40,817,000)] term loans secured by legal
mortgages on certain properties of the subsidiaries. $16,716,000 (NZ$16,197,000) [2011:
$5,581,000 (NZ$5,817,000)] was repaid during the year. TheA$95,000,000 loan is repayable
in fnancial year 2013 and is expected to be refnanced upon maturity. Interest is pegged to
market rates ranging from 4.30% to 7.27% (2011: 6.36% to 7.11%) per annum. Interest rate
is repriceable at intervals of 1 to 3 months.
(b) $88,762,000 (A$67,892,000) [2011: $88,376,000 (A$67,892,000)] term loan secured by
legal mortgages on certain properties of the subsidiaries. Interest is pegged to market rates
ranging from 6.33% to 6.92% (2011: 5.10% to 6.92%) per annum. Interest rate is repriceable
at intervals of 1 to 3 months.