Notes to the Financial Statements
continued
74
26 Leases
(a) Group and Company as lessee
Commitments for minimum lease payments/receipts in relation to non‑cancellable operating leases are
payable/receivable as follows:
2013
2012
2013
2012
$’000
$’000
$’000
$’000
Within one year
118
106
45
29
Later than one year but not later than five years
292
156
96
23
Later than five years
210
347
-
1
620
609
141
53
There are no options to purchase attached to any lease agreements.
The operating leases that exist between the Shareholder and the Company for land owned by the Shareholder
at The Base and the University of Waikato are rent free until the first rent review date which is in 2019 and
2022 respectively.
(b) Group and Company as lessor
The lease amounts due from leasees are as follows:
2013
2012
2013
2012
$’000
$’000
$’000
$’000
Within one year
32,820
31,518
1,743
2,000
Later than one year and not later than five years
96,984
104,238
6,858
8,000
Later than five years
117,269
139,239
48,401
58,942
247,073
274,995
57,002
68,942
The majority of lease agreements are renewable at the end of the lease period at market rates. There are no
options to purchase attached to any lease agreements.
25.2 Capital risk management
The Group’s capital is its equity plus debt, which is comprised of contributed capital, retained earnings and
other reserves. Equity is represented by net assets. The Group manages its revenues, expenses, assets and
liabilities, investments and general financial dealings prudently. The Group’s equity is largely managed as a
by‑product of managing revenues, expenses, assets, liabilities, investments and general financial dealings. The
objective of managing the Group’s equity is to ensure the Group effectively achieves its objectives and purpose,
whilst remaining a going concern in order to provide returns for the Shareholder and to maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may
adjust the amount of dividend paid to the Shareholder, return capital to the Shareholder, issue new shares or sell
assets to reduce debt. The Group has not breached any bank covenants as required by the Bank of New Zealand
and Westpac New Zealand Ltd during the reporting period (2012: no breach). There are no externally imposed
capital requirements at balance date (2012: nil).
2013
2012
2013
2012
Note
$’000
$’000
$’000
$’000
Total borrowings
22 186,671
179,622
160,286
151,437
Less: cash and cash equivalents
(7,603)
(6,257)
(5,032)
(2,054)
Net debt
179,068
173,365
155,254
149,383
Total equity
476,911
373,883
343,483
78,459
Total capital
655,979
547,248
498,737
227,842
Gearing ratio
27%
32%
31%
66%
Parent
Consolidated
Parent
Consolidated
Parent
Consolidated
