Exchange gain/(loss) on cash and cash equivalents 119 (44)
=================================================== ========== ============= =============
Cash and cash equivalents at end of year(2) 29,391 80,609
=================================================== ========== ============= =============
(1) Cashflows received from unconsolidated subsidiary entities
in respect of surrender of tax losses
(2) Includes restricted cash of nil (2013: GBP30.9 million)
which can only be utilised for new investments.
1. Basis of Preparation
International Public Partnerships Limited is a closed ended
authorised investment company incorporated in Guernsey under
Companies (Guernsey) Law, 2008. The address of the registered
office is given on page 85. The nature of the Group's operations
and its principal activities are set out in pages 4 and 10 to 13
respectively.
These financial statements are presented in pounds Sterling as
this is the currency of the primary economic environment in which
the Group ('parent and consolidated subsidiary entities') operates
and represents the functional currency of the Parent and all values
are rounded to the nearest (GBP'000), except where otherwise
indicated.
Basis of preparation
These financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS), adopted by
the
European Union; interpretations issued by the International
Financial Reporting Interpretations Committee; applicable legal and
regulatory requirements of Guernsey; and the Listing Rules of the
UK Listing Authority. The financial statements follow the
historical cost basis, except for financial assets held at fair
value through profit or loss and derivatives that have been
measured at fair value. The principal accounting policies adopted
are set out in relevant notes to the financial statements.
The Directors have determined that International Public
Partnerships Limited is an investment entity as defined by IFRS 10
on the basis that:
a) it obtains funds from one or more investor(s) for the purpose
of providing those investor(s) with investment management
services;
b) it commits to its investors that its business purpose is to
invest funds solely for returns from capital appreciation,
investment income,
or both; and
c) it measures and evaluates the performance of substantially
all of its investments on a fair value basis.
Accordingly, these financial statements consolidate only those
subsidiaries that provide services relevant to its investment
activities, such as management services, strategic advice and
financial support to its investees. Subsidiaries that do not
provide investment-related services are required to be measured at
fair value through profit or loss in accordance with IAS 39
Financial Instruments: Recognition and Measurement.
Going concern
As set out in the Directors' Report, the Directors have reviewed
cash flow forecasts prepared by management. Based on those
forecasts and an assessment of the Group's committed banking
facilities, they have concluded that it is appropriate to prepare
the financial statements of the Group on a going concern basis.
In arriving at their conclusion that the Group has adequate
financial resources, the Directors were mindful that the Group had
unrestricted cash of GBP29.4 million as at 31 December 2014. The
Group has access to an undrawn corporate debt facility balance of
GBP158.1 million, which is available for investment in new and
existing projects and is committed until December 2016. The Group
can utilise a portion of the undrawn corporate debt facility for
working capital purposes. The new facility is forecast to continue
in full compliance with the associated banking covenants. The Group
also continues to fully cover cost and distributions from
underlying operational investment cash flows.
During the year, the Group completed a tap issuance of GBP95
million which was used to partly repay the drawn down balance of
the corporate debt facility. There was also a scrip issuance as
disclosed in note 17.
Accounting Policies
The annual financial statements of International Public
Partnerships Limited are prepared in accordance with IFRS as
adopted by the European Union.
The same accounting policies, presentation and methods of
computation are followed in this set of annual financial statements
as applied in the previous financial year. The new and revised IFRS
and interpretations becoming effective in the period have had no
impact on the accounting policies of the Group. Note 22 sets out a
comprehensive listing of all new standards applicable from 1
January 2014.
2. Significant Judgements and Estimates
Service entities and consolidation group
Following the adoption of IFRS 10 Investment Entity Amendments,
the consolidated financial statements incorporate the financial
statements of the Company and service entities controlled by the
Company up to 31 December 2014, that themselves do not meet the
definition of an investment entity. Typically a service entity
provides management services, strategic advice and financial
support to investee entities. Judgement is therefore required in
assessing which entities meet these definitional requirements. The
Directors have reviewed and assessed the criteria applied in the
assessment of services entities based on the guidance in place as
at 31 December 2014 and are satisfied with the resulting
conclusion.
2. Significant Judgments and Estimates continued
Fair valuation of investments at fair value through profit or
loss
Fair values are determined using the income approach which
discounts the expected cash flows at a rate appropriate to the risk
profile of each investment. In determining the discount rate
relevant long-term government bond yields, specific investment
risks and the evidence of recent transactions are considered.
Details of the valuation process and key sensitivities are provided
in note 13.
3. Segmental Reporting
Based on a review of information provided to the chief operating
decision makers of International Public Partnerships Limited, the
Group has identified four reportable segments based on the
geographical risk associated with the Group. The factors used to
identify the Group's reportable segments are centered on the risk
free rates and the maturity of the Infrastructure sector
(particularly PFI/PPP) within each region. Further, foreign
exchange and political risk is identified, as these also determine
where resources are allocated. Management has concluded that the
Group is currently organised into four reportable segments being
UK, Europe (non UK), Australia and North America.
Year ended 31 December 2014
========== ===================================================
Europe North
UK Non UK America(2) Australia Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
=========================== ========== ========== ============ ========== =============
Segmental results
Dividend and interest
income 47,798 1,178 1,906 4,923 55,805
Fair value gain/(loss)
on investments 8,272 16,994 (1,787) 8,708 32,187
Realised gain on disposal
of investments 2,103 1 - - 2,104
=========================== ========== ========== ============ ========== =============
Total investment income 58,173 18,173 119 13,631 90,096
=========================== ========== ========== ============ ========== =============
Reporting segment
profit(1) 41,336 17,792 184 13,899 73,211
=========================== ========== ========== ============ ========== =============
Segmental financial
position
Investments at fair
value 690,071 210,962 38,858 93,050 1,032,941
Current assets 51,868 - - - 51,868
=========================== ========== ========== ============ ========== =============
Total assets 741,939 210,962 38,858 93,050 1,084,809
Total liabilities (22,741) - - - (22,741)
=========================== ========== ========== ============ ========== =============
Net assets 719,198 210,962 38,858 93,050 1,062,068
=========================== ========== ========== ============ ========== =============
Year ended 31 December 2013
=========== =====================================================
Europe North
UK Non UK America(2) Australia Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
========================= =========== ========== ============ ============ =============
Segmental results
Dividend and interest
income 36,763 1,555 2,965 5,244 46,527
Fair value gain/(loss)
on investments 36,195 10,761 (2,122) (14,137) 30,697
========================= =========== ========== ============ ============ =============
Total investment income 72,958 12,316 843 (8,893) 77,224
========================= =========== ========== ============ ============ =============
Reporting segment
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