35.
CAPITAL MANAGEMENT
Capital includes debt and equity items as disclosed in the table below.
The primary objective of the Group’s capital management is to ensure that it maintains strong credit
worthiness and healthy capital ratios in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment
to shareholders, return capital to shareholders or issue new shares. No changes were made in the
objectives, policies or processes during the year ended 31 December 2015 and 31 December 2014.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt. The Group’s policy is to keep the gearing ratio below 70%. The Group includes within net debt,
loans and borrowings and finance lease payables less cash and cash equivalents. Capital includes
equity attributable to the owners of the Company.
2015
2014
$’000
$’000
Finance lease payables
624
67
Bank borrowings
6,817
12,712
Less:
Cash and cash equivalents
(50,514)
(52,661)
Net cash
(43,073)
(39,882)
Equity attributable to owners of the Company
129,072
134,839
Capital and net debt
85,999
94,957
Gearing ratio
–
–
36.
APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the Board of Directors on
31 March 2016.
126
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
