QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: principal market risks are our exposure to changes in interest rates and foreign currency exchange rates.
−Removed: We have external borrowings that are subject
−Removed: to the risk of higher interest charges associated with increases in interest rates.
−Removed: As of December 31, 2019, we had £140.0
−Removed: million ($184.9 million) and €90.0 million ($101.1 million) of senior bank debt that is subject to a floating interest rate
−Removed: charge that can vary with the 3-month LIBOR and the 3-month EUROLIBOR rates.
−Removed: If the floating interest rates increased by 1%, the
−Removed: additional interest charge would be approximately $1.8 million.
−Removed: If the floating interest rates increased by 5%, the additional
−Removed: interest charge would be approximately $8.8 million.
+Added: principal market risks are our exposure to changes in foreign currency exchange rates.
+Added: the Company’s refinancing of its debt in May 2021, the external borrowings of £235.0 million ($282.9 million) are provided
+Added: at a fixed rate.
+Added: Therefore, movements in rates such as LIBOR do not impact on the current borrowings and the only fluctuation that is
+Added: expected to be reported will be that solely caused by movements in the exchange rates between the Company’s functional currency
+Added: and its reporting currency.
Currency Exchange Rate Risk
4 unchanged sentences
necessarily GBP.
−Removed: Excluding intercompany balances, our Euro functional currency net liabilities total approximately $86.3 million and
−Removed: our US Dollar functional currency net liabilities total approximately $9.5 million.
−Removed: We use a sensitivity analysis model
−Removed: to measure the impact of a 10% adverse movement of foreign currency exchange rates against the US Dollar.
−Removed: A hypothetical 10% adverse
−Removed: change in the value of the Euro and the US Dollar relative to GBP as of December 31, 2019 would result in translation adjustments of
−Removed: approximately $7.7 million and $1.0 million, respectively, recorded in other comprehensive loss.
+Added: To estimate our foreign currency exchange rate risk, we identify material Euro and US Dollar trading and balance sheet
+Added: amounts and recalculate the result using a 10% movement in the GBP:US Dollar exchange rate.
+Added: For the trading figures the 10% movement
+Added: is based on the average exchange rate throughout the reported period and for the balance sheet figures the 10% movement is based on the
+Added: exchange rate used at December 31, 2022.
+Added: intercompany balances, our Euro functional currency net assets total approximately $0.4 million, and our US Dollar functional currency
+Added: net assets total approximately $4.6 million.
+Added: We use a sensitivity analysis model to measure the impact of a 10% adverse movement of foreign
+Added: currency exchange rates against the US Dollar.
+Added: A hypothetical 10% adverse change in the value of the Euro and the US Dollar relative
+Added: to GBP as of December 31, 2022, would result in favorable translation adjustments of approximately $0.0 million and $0.5 million, respectively,
+Added: recorded in other comprehensive loss.
within our trading results are earnings outside of our functional currency.
−Removed: Retained earnings earned in Euros and in US Dollars in the
−Removed: period ended December 31, 2019 were €0.5 million and $21.6 million, respectively.
−Removed: A hypothetical 10% adverse change in the
−Removed: value of the Euro and the US Dollar relative to GBP as of December 31, 2019 would result in translation adjustments of approximately
−Removed: $0.1 million and $2.0 million, respectively, recorded in trading operations.
−Removed: majority of the Company’s trading is in GBP, the functional currency, although the reporting currency of the Company is
−Removed: the US Dollar.
−Removed: As such, changes in the GBP:USD exchange rate have an effect on the Company’s results.
−Removed: A 10% weakening of
−Removed: GBP against the US Dollar would change the trading operational results by approximately $1.8 million and would result in translation
+Added: Retained gains from Euro based entities earned in Euros and
+Added: retained losses from USD based entities earned in US Dollars in the twelve months ended December 31, 2022, were €13.4 million and
+Added: $12.3 million, respectively.
+Added: A hypothetical 10% adverse change in the value of the Euro and the US Dollar relative to GBP as of December
+Added: 31, 2022, would result in translation adjustments of approximately $1.3 million favorable and $1.1 million unfavorable, respectively,
+Added: recorded in trading operations.
+Added: majority of the Company’s trading is in GBP, the functional currency, although the reporting currency of the Company is the US
+Added: As such, changes in the GBP:USD exchange rate have an effect on the Company’s results.
+Added: A 10% weakening of GBP against the
+Added: US Dollar would change the trading operational results unfavorably by approximately $1.9 million and would result in unfavorable translation
adjustments of approximately $10.7 million, recorded in other comprehensive loss.
−Removed: further information regarding the new external borrowings, see Note 12 to the Consolidated Financial Statements, “Long Term
−Removed: and Other Debt”.
−Removed: FINANCIAL STATEMENTS AND SUPPLEMENTARY FINANCIAL DATA.
−Removed: financial statements are set forth below following the signature page.
−Removed: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS.
+Added: further information regarding the new external borrowings, see Note 13 to the Consolidated Financial Statements, “Long Term and
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.