21. SHARE OPTION SCHEMES continued
21.2 Valuation of options continued
The expected volatility is based on the historic volatility (calculated based on the weighted average remaining life of the
share options), adjusted for any expected changes to future volatility due to publicly available information. There are no
market conditions associated with the share option grants.
22. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's principal financial instruments as at 31 December 2013 comprise cash and cash equivalents. The main purpose
of these financial instruments is to finance the Group's operations. The Group has other financial instruments which mainly
comprise receivables and payables, which arise directly from its operations. Cash and cash equivalents and trade and other
receivables have been classified as loans and receivables and trade and other payables, and deferred consideration as
financial liabilities measured at amortised cost.
During the year, the Group did not use derivative financial instruments to hedge its exposure to foreign exchange or interest
rate risks arising from operational, financing and investment activities. The Group does not hold or issue derivative financial
instruments for trading purposes.
22.1 Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates which will affect the
Group's income or value of its holdings of financial instruments. Exposure to market risk arises in the normal course of the
22.2 Foreign Exchange Risk
Foreign exchange risk arises from transactions, recognised assets and liabilities and net investments in foreign operations.
The Group does not use foreign exchange contracts to hedge its currency risk. The Group dividend is declared in the Euro.
Two weeks before the dividend is due to be paid, the Company sells Euro and buys British Pounds for an amount equal to
The Group has investments in foreign operations which are all denominated in Euros minimising the Group's exposure to
currency translation risk.
22.2.1 Analysis of the Balance Sheet by Currency
At 31 December 2013 Euro GBP Other Total
€000's €000's €000's €000's
Non-current assets 153,148 1,620 - 154,768
Receivables and prepayments 14,875 5,144 3,560 23,579
Tax reclaimable 1,877 - - 1,877
Other taxes reclaimable - 281 25 306
Cash and cash equivalents 6,587 8,428 3,793 18,808
Total current assets 23,339 13,853 7,378 44,570
Trade and other payables (13,930) (9,447) (712) (24,089)
Balances with customers (5,767) (1,710) (5,821) (13,298)
Taxation payable (2,500) (186) (36) (2,722)
Other taxation liabilities (772) (3,285) (125) (4,182)
Total current liabilities (22,969) (14,628) (6,694) (44,291)
Net current assets 370 (775) 684 279
- Interest bearing loan and borrowings - (1,221) - (1,221)
- Non-interest bearing loan and borrowings - (5,148) - (5,148)
- Deferred consideration (7,582) - - (7,582)
Total assets less total liabilities 145,936 (5,524) 684 141,096
ANNUAL REPORT 2013 56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2013