Carphone Warehouse 2008 Annual Report Download - page 76

Notes to the Financial Statements continued
64The Carphone Warehouse Group PLC Annual Report 2008
19Trade and other payables (continued)
The average credit period taken on trade payables, calculated by reference to the amounts owed at the period end as a proportion of the amounts
invoiced by suppliers in the period, adjusted to take account of the timing of acquisitions, was 48 days (2007 – 43 days).
The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
20 Cash and cash equivalents, loans and other borrowings
Cash and cash equivalents comprise:
2008 2007
£m £m
Cash at bank and in hand 60.3 38.1
Short-term bank deposits and money market funds 27.6 73.0
87.9 111.1
The effective interest rate on bank deposits and money market funds was 5.1% (2007 – 4.9%).
Within cash and cash equivalents, £65.7m (2007 – £79.5m) is held by the Group’s insurance business, of which £55.0m (2007 – £46.0m) is required
to cover regulatory reserve requirements. As such, these funds are not available to offset other Group borrowings.
Loans and other borrowings comprise:
2008 2007
Current Maturity £m £m
Bank overdrafts On demand 20.0 12.2
Other uncommitted bank loans On demand 18.6 10.0
Loan notes On demand –0.5
38.6 22.7
Non-current
Committed loan facilities:
£200m 364-day facility with term-out option 2009 ––
£450m revolving credit facility 2009 –60.0
£50m term loan 2010 50.0 50.0
£225m term loan 2011 228.4 223.7
£375m term loan 2012 380.8 373.9
£550m revolving credit facility 2013 235.0 –
894.2 707.6
Details of the current and non-current borrowing facilities of the Group are set out below.
Bank overdrafts and other uncommitted bank loans:
The Group has a variety of overdraft facilities in Sterling, Euro and other European currencies. These facilities are domiciled in various countries and
interest is charged at the standard overdraft rates applicable in the countries concerned. Some of the Group’s major banks make uncommitted facilities
available to assist with short-term liquidity management. These facilities bear interest based on the appropriate local interest rates. All of these facilities
are repayable on demand.
Loan notes:
The Group has issued a number of interest-bearing loan notes. These loan notes are repayable on demand and expire between 2012 and 2016.
Loan notes were issued during the period totalling £0.5m (2007 – £nil) and £1.0m (2007 – £15.1m) were redeemed or cancelled.
£550m revolving credit facility (RCF):
A new revolving credit facility (£550m RCF) was signed in March 2008, replacing the £450m RCF that was originally agreed in September 2004. Over-
subscription allowed the Group to increase the amount of the RCF, which is mainly used to fund working capital, from £450m to £550m. The facility is
repayable in full in March 2013. The interest rate payable in respect of drawings under this facility is at a margin over LIBOR for the relevant currency and
for the appropriate period. The actual margin applicable to any drawing depends on the ratio of debt to EBITDA, calculated in respect of the most recent
accounting period. A non-utilisation fee is payable in respect of amounts available but undrawn under this facility. Covenants are included in this facility
that limit the ratio of debt to EBITDA, interest cover, and fixed charges (interest and operating lease expenditure) cover. The Group was in compliance
with these covenants at the period end.