8. Deferred tax asset
2012 2011
£’000 £’000
Deferred tax asset at 1st January 323 293
Deferred tax (charge)/credit in profit and loss account for the year (120) 30
Deferred tax asset at 31st December 203 323
Deferred tax asset is in relation to a short term timing difference. This relates predominately to the interest rate swap.
In March 2012, the UK government announced proposals to reduce the main rate of corporation tax to 22% from 1st April 2014. As of 31st December
2012 reductions to the main rate of corporation tax to 23% had been enacted. Accordingly this is the rate at which deferred tax has been provided.
If the subsequent reductions in the tax rate to 22% had been substantively enacted at 31st December 2012 the deferred tax liability would have
reduced by £17,000.
No provision has been made for deferred tax on gains recognised on revaluing investments. Such tax would become payable only if the investment
were sold. The total amount unprovided for is £2,456,000. At present, it is not envisaged that any tax will become payable in the foreseeable future.
9. Loans
2012 2011
£’000 £’000
Amounts falling due
In more than one year but not more than two years 24,500 –
In more than two years but not more than five years – 47,113
24,500 47,113
Bank loans – revolving credit facility and overdraft
The bank loan totalling £24.5m (2011: £34.9m) and overdraft totalling £1.5m (2011: £nil), is secured via a cross guarantee issued from all of the
Group’s subsidiaries excluding the following subsidiaries, Lending Solutions, Homefast Property Services, Linear Mortgage Network, Linear Financial
Services, Templeton LPA, AMF, BDS, Chancellors Associates and LSLi and its subsidiaries.
The bank loans relate to the revolving credit facility. The utilisation of this revolving credit facility may vary each month as long as this does not
exceed the maximum £75m facility (2011: £75m). The Group’s overdraft is also secured on the same facility but can not exceed £5m and the
combined overdraft and revolving credit facility can not exceed £75m (2011: £75m). The banking facility was renewed in 2010 for a further period
until March 2014.
Financial Statements
The interest rate applicable to the facility is LIBOR plus a margin rate of 1.75% (2011: 2%). The margin rate is linked to the leverage ratio of the Group
and the margin rate is reviewed at six monthly intervals.
10. called up share capital
2012 2011
Shares £’000 Shares £’000
Authorised
Ordinary Shares of 0.2p each 500,000,000 1,000 500,000,000 1,000
issued and fully paid:
At 1st January and 31st December 104,158,950 208 104,158,950 208
113