68 Franchise Brands plc Annual Report and Accounts 2018 NOTES FORMING PART OF THE FINANCIAL STATEMENTS continued For year ended 31 December 2018 16 Loans and borrowings Group and Company 2018 £’000 2017 £’000 Current Revolving credit facility 2,514 3,506 Term loan 1,035 803 Amortised loan fees (110) (145) Total current loans and borrowings 3,439 4,164 Non-current 4,400 Term loan 5,255 The loans are comprised of a £5,400,000 term loan, which carries a 2.95% interest rate and is repayable in instalments until 2022; and a £2,500,000 revolving credit facility, which runs until April 2023, and carries a 2.95% interest rate. Included above are the amortised value of loan fees of £110,000 (2017: £145,000), which are the difference between the book value and fair value of the loans. The bank loans are secured by a floating charge over the assets of the Group. During the year the Group set up an asset financing scheme with HSBC plc for the use of Metro Rod franchisees, primarily for the purchase of vans and tankers. The Group participates in this scheme, on a step-in basis, up to a total value of £1m. In the event of a default of a franchisee, the Group would step-in and have the rights of the financed asset, and the obligation on the liability. At the year end, £0.9m had been lent through this scheme. There are no expected credit losses to recognise in respect of the asset financing scheme. 17 Obligations for finance leases ageing Group 2018 £’000 2017 £’000 Current 21 21 Non-current (between 1 and 5 years) 51 65 Total obligation for finance lease 72 86 Finance leases are secured on the assets to which they relate. 18 Deferred tax liability Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 17% (2018: 17%). Group Intangibles £’000 Accelerated allowances £’000 IFRS15 adjustment £’000 Share based payment £’000 Total £’000 Cost At 1 January 2017 (132) (31) – – (163) Credit in the year 27 – – – 27 Acquisition of subsidiaries (1,164) 774 152 – (238) At 31 December 2017 (1,269) 743 152 – (374) Credit/ (charge) in the year 39 (253) (152) 38 (328) At 31 December 2018 (1,230) 490 – 38 (702)