Funding and Dividend
Our conversion of profit into cash was again strong. We funded acquisition investment of £19.2 million in the period, including £7.8 million deferred consideration from acquisitions made in prior years. Net bank borrowings at 30 June 2016 were £95.0 million (31 December 2015: £78.8 million).
Since July 2015 we have had in place a five year £150 million revolving credit facility with Lloyds Bank plc and HSBC Bank plc. In addition, about five years remain on the £30.0 million and $34.1 million fixed term, fixed rate notes issued through Pricoa in 2014. Our interest cover at 30 June was 10.0 times well above the bank covenant of 4.0 times. Our leverage at 30 June was 2.2, well below the bank covenant of 3.0. We anticipate our good operating cash flow to continue in the remainder of the year and leverage to reduce by the year end.
The Board remains confident about the Group's financial strength. However, given the markets we experienced in the first half, as well as the uncertainty created by the UK vote to leave the EU, it has decided to hold the Interim dividend at the 2015 level and review the appropriate level for the full year when it recommends the final dividend. The interim dividend will, therefore, be 4.66 pence (2015: 4.66 pence), payable on 14 October 2016 to shareholders on the register on 16 September 2016. The Board has also decided to take a more cautious approach to investment in acquisitions until the future becomes clearer.
