Note 13
13 Available-for-sale financial assets
Current:
|
| Short-term | Short-term | Total |
At 1 January 2009 |
| 471 | 1,816 | 2,287 |
Net cash invested in the year |
| 105,070 | − | 105,070 |
Revaluation through equity |
| − | 130 | 130 |
Exchange differences |
| (17) | (151) | (168) |
At 31 December 2009 |
| 105,524 | 1,795 | 107,319 |
| Short-term | Short-term | Listed | Total |
At 1 January 2008 | 232 | 1,582 | 1,180 | 2,994 |
Net cash invested in the year | 233 | − | − | 233 |
Disposals | − | − | (1,180) | (1,180) |
Revaluation through equity | − | (285) | − | (285) |
Exchange differences | 6 | 519 | − | 525 |
At 31 December 2008 | 471 | 1,816 | − | 2,287 |
Non-current:
| Other | Total | |
Net book value |
|
|
|
At 1 January 2009 |
| 1,167 | 1,167 |
Additions |
| 9,116 | 9,116 |
Disposals |
| (439) | (439) |
Impairments |
| (412) | (412) |
At 31 December 2009 |
| 9,432 | 9,432 |
| Other | Total | |
Net book value |
|
|
|
At 1 January 2008 |
| 3,701 | 3,701 |
Additions |
| 1,029 | 1,029 |
Disposals |
| (4,813) | (4,813) |
Exchange differences |
| 1,250 | 1,250 |
At 31 December 2008 |
| 1,167 | 1,167 |
Short-term marketable securities There is a readily available market for these investments. Unrealised gains and losses on these investments are recognised directly in equity via the revaluation reserve. The Group recognises an impairment charge when the decline in fair value below cost is judged to be other than temporary. At 31 December 2009 and 2008, the fair value is equal to cost.
Other long-term investments
Those unlisted companies in which the Group has invested are generally early-stage development enterprises, which are generating value for shareholders through research and development activities, and most do not currently report profits (carrying value at 31 December 2009: £9,432,000; 2008: £1,167,000). The directors are of the opinion that the fair value of these investments approximates to carrying value. Provisions have been made against other investments to reflect any impairment in value.
Additions in the year included:
– | a 15% investment and a convertible loan note to Cognovo Limited (a UK company specialising in software-defined modem techniques and solutions); |
– | a convertible loan note to Ideaworks 3D Limited (a UK software company specialising in enabling games and applications to be deployed across multiple platforms and operating systems on mobile devices); |
– | a 5% investment in eSol Co. Ltd. (an embedded software company in Japan); |
– | a 5% investment in Arteris Holdings Inc. (a US network-on-chip company providing system-on-chip interconnect IP and related tools); |
– | a less than 5% investment in Triad Semiconductor Inc. (a US chip company specialising in mixed signal ASICs); |
– | a convertible loan note to Smooth-stone Inc. (a US company specialising in low-power server technology); and |
– | a 10% investment in Cyclos Semiconductor Inc. (a US company specialising in on-chip energy harvesting). |
During the year, the Group disposed of its investment in Luminary Micro Inc. (a private fabless semiconductor company based in Texas which develops pioneering ARM architecture-based SoC products).
Included in other investments are the Group’s less than 1% investment in the share capital of Pixim Inc. (a private fabless chip company based in California); a less than 1% holding in Reciva Limited (an internet radio company based in the UK); and a minority holding in Embest Info & Tech Co. Ltd (a niche developer of embedded hardware and software based in China) and a less than 1% investment in the share capital of CoWare Inc. (a company which develops system-on-chip software for a wide range of applications).
The exchange difference in 2008 noted in the table above results from our holding in a US dollar denominated convertible loan note to W&W Communications Inc. (an unlisted US company). W&W was acquired in December 2008, at which time the loan notes were repaid.
Available-for-sale financial assets include the following:
| 2009 | 2008 |
Short-term investments – UK Short-term investments – Korea | 105,339 185 | − 471 |
Unlisted short-term marketable securities – US | 1,795 | 1,816 |
Total current financial assets | 107,319 | 2,287 |
Unlisted equity securities – UK | 25 | 50 |
Unlisted equity securities – China | 123 | 123 |
Unlisted equity securities – Japan | 890 | − |
Unlisted equity securities – US | 1,416 | 994 |
Convertible loan notes – UK | 6,615 | − |
Convertible loan notes – US | 363 | − |
Total non-current financial assets | 9,432 | 1,167 |
Total financial assets | 116,751 | 3,454 |
Available-for-sale financial assets are denominated in the following currencies:
| 2009 | 2008 |
Sterling | 114,408 | 1,167 |
US dollars | 2,158 | 1,816 |
Korean won | 185 | 471 |
Total financial assets | 116,751 | 3,454 |