Notes to the financial statements

for the year ended 31 March 2012

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21 Bank loans

Consolidated Parent company
2012
£’000
2011
£’000
2012
£’000
2011
£’000
Bank borrowings
Amount falling due:
– between one and two years
– between two and five years 85,000 90,000
85,000 90,000
Loan issue costs (1,536) (1,996)
83,464 88,004

The loan facility was secured by guarantees given by all material subsidiaries of KCOM Group PLC in favour of the lending banks.

The bank borrowings are fully repayable in July 2015 and attract an interest rate of LIBOR plus a margin dependent on specific covenants. For further information on interest rate swaps see note 28.

The Directors consider that the carrying value of bank borrowings approximates fair value as the interest rates on the borrowing are linked to the UK bank base rate.