16 investments in associates and joint ventures
The principal associate and joint venture are set out below.
| Country of incorporation and area of operation |
Issued capital | Group share | |
|---|---|---|---|
| Hanil Can Company Limited – associate | South Korea | 1.7m shares of 5,000 won each | 40% |
| Controladora Envases Universales Rexam SA – joint venture | Guatemala | 334.5m shares of 1 quetzal each | 50% |
| Associates £m |
Joint ventures £m |
Total £m |
|
|---|---|---|---|
| At 1 January 2010 | 31 | 23 | 54 |
| Exchange differences | 2 | 1 | 3 |
| Share of post tax profits – continuing operations | 2 | 3 | 5 |
| Transfer to assets classified as held for sale | – | (1) | (1) |
| At 31 December 2010 | 35 | 26 | 61 |
| At 1 January 2009 | 37 | 26 | 63 |
| Exchange differences | – | (2) | (2) |
| Transfer of joint venture to subsidiary status | – | (2) | (2) |
| Disposal of associate | (6) | – | (6) |
| Share of post tax profits – continuing operations | – | 2 | 2 |
| Share of post tax losses – discontinued operations | – | (1) | (1) |
| At 31 December 2009 | 31 | 23 | 54 |
There is £3m of goodwill allocated to the joint venture in Guatemala (2009: £3m).
The following table sets out summary information on all associates and joint ventures on a 100% basis.
| 2010 Associates £m |
2010 Joint ventures £m |
2009 Associates £m |
2009 Joint ventures £m |
|
|---|---|---|---|---|
| Sales | 153 | 56 | 115 | 44 |
| Profit after tax | 5 | 5 | 1 | 1 |
| Assets | 150 | 62 | 129 | 59 |
| Liabilities | (63) | (10) | (52) | (13) |
17 available for sale financial assets
| 2010 £m |
2009 £m |
|
|---|---|---|
| At 1 January | 23 | 31 |
| Exchange differences | 1 | (3) |
| Income for the year | 2 | 2 |
| Changes in market value | 1 | (4) |
| Cash payments | 3 | – |
| Payments to satisfy retirement benefit obligations | (2) | (3) |
| At 31 December | 28 | 23 |
| Non current assets | 27 | 21 |
| Current assets | 1 | 2 |
| At 31 December | 28 | 23 |
Available for sale financial assets at 31 December 2010 include £27m (2009: £22m) of investments used to satisfy certain US retirement obligations, of which £27m (2009: £18m) comprises fixed rate listed investments, the fair values of which are determined directly by reference to published price quotations in an active market, and £nil (2009: £4m) comprises cash and cash equivalents. Also included in available for sale financial assets at 31 December 2010 are unlisted investments of £1m (2009: £1m).
The carrying amounts of available for sale financial assets are denominated in the following currencies, which are the functional currencies of the relevant subsidiaries.
| 2010 £m |
2009 £m |
|
|---|---|---|
| US dollar | 27 | 22 |
| Euro | 1 | 1 |
| 28 | 23 |
18 inventories
| 2010 £m |
2009 £m |
|
|---|---|---|
| Raw materials, stores and consumables | 176 | 182 |
| Work in progress | 15 | 18 |
| Finished goods | 224 | 232 |
| 415 | 432 |
An analysis of provisions against inventories is set out below.
| 2010 £m |
2009 £m |
|
|---|---|---|
| At 1 January | (32) | (30) |
| Exchange differences | – | 2 |
| Charge for the year | (13) | (10) |
| Released in the year | 3 | 1 |
| Utilised | 4 | 5 |
| Transfer to assets classified as held for sale | 9 | – |
| At 31 December | (29) | (32) |
19 trade and other receivables
| 2010 £m |
2009 £m |
|
|---|---|---|
| Non current assets | ||
| Trade receivables | 4 | 4 |
| Provision for impairment | (4) | (4) |
| Net trade receivables | – | – |
| Prepayments | 68 | 33 |
| Taxes | 9 | 8 |
| Other receivables | 43 | 39 |
| 120 | 80 | |
| Current assets | ||
| Trade receivables | 509 | 499 |
| Provision for impairment | (17) | (12) |
| Net trade receivables | 492 | 487 |
| Prepayments | 55 | 42 |
| Taxes | 37 | 36 |
| Other receivables | 64 | 65 |
| 648 | 630 | |
| Total trade and other receivables | 768 | 710 |
An analysis of provisions for impairment of trade and other receivables is set out below.
| 2010 £m |
2009 £m |
|
|---|---|---|
| At 1 January | (16) | (11) |
| Exchange differences | – | 1 |
| Impairment in the year | (7) | (10) |
| Released in the year | 1 | 3 |
| Utilised | 1 | 1 |
| At 31 December | (21) | (16) |
An analysis of total trade and other receivables including those which are past due but not impaired is set out below.
| 2010 £m |
2009 £m |
|
|---|---|---|
| Not yet due | 715 | 670 |
| Past due less than 1 month | 21 | 15 |
| Between 1 and 2 months | 4 | 9 |
| Between 2 and 3 months | 1 | 4 |
| Between 3 and 6 months | 2 | 4 |
| Between 6 and 12 months | 5 | 8 |
| In more than 12 months | 20 | – |
| 768 | 710 |
All amounts over two months past due but not impaired are expected to be recovered in the first half of 2011.
The maximum amount of credit risk with respect to customers is represented by the carrying amount on the balance sheet. Customer credit facilities for new customers must be approved by designated managers at business level or by senior sector management. Credit limits are set with reference to trading history and reports from credit rating agencies. Customer credit facilities are reviewed at the sales order entry stage and at the time of shipment so as not to exceed customer limits. Overdue accounts are regularly reviewed and impairment provisions are created where necessary. As a matter of policy, all outstanding trade balances greater than three months are fully provided except as approved by senior sector management and with due regard to the historical risk profile of the customer. The Group has extremely low historical levels of customer credit defaults, due in part to the blue chip multinational nature of many of its customers and the long term relationships it has with them. There were no major new customers in 2010 where the Group considered there was a risk of significant credit default. There are no trade and other receivables that would otherwise be past due or impaired whose terms have been renegotiated.
The carrying amounts of total trade and other receivables are denominated in the following currencies which, in most instances, are the functional currencies of the relevant subsidiaries.
| 2010 £m |
2009 £m |
|
|---|---|---|
| Euro | 259 | 241 |
| US dollar | 242 | 207 |
| Brazilian real | 154 | 154 |
| Russian rouble | 29 | 17 |
| Other | 84 | 91 |
| 768 | 710 |
20 cash and cash equivalents
| 2010 £m |
2009 £m |
|
|---|---|---|
| Cash at bank and in hand | 46 | 40 |
| Short term bank deposits | 68 | 73 |
| 114 | 113 |
The Group has provided letters of credit, secured by short term bank deposits, totalling £1m (2009: £5m) as part of its insurance arrangements.
The carrying amounts of cash and cash equivalents are denominated in the following currencies.
| 2010 £m |
2009 £m |
|
|---|---|---|
| US dollar | 72 | 13 |
| Euro | 20 | 56 |
| Brazilian real | 6 | 26 |
| Other | 16 | 18 |
| 114 | 113 |
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