Holiday Inn 2003 Annual Report Download - page 53

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51
30 Sept 2002
Interest at fixed rate
Weighted
average
Currency Principal Weighted period for
swap At variable At fixed average which rate
Net debt agreements Total rate* rate rate is fixed
28 FINANCIAL INSTRUMENTS (CONTINUED) £m £m £m £m £m % (years)
Current asset investments and
cash at bank and in hand:
Sterling 196 2,153 2,349 2,349 – – –
US dollar 30 – 30 30–––
Other 76 – 76 76–––
Borrowings:
Sterling (532) – (532) (327) (205) 10.2 13.5
US dollar (463) (1,490) (1,953) (1,195) (758) 5.4 2.1
Euro (183) (628) (811) (598) (213) 4.9 1.9
Hong Kong dollar (215) – (215) (158) (57) 3.2 1.0
Other (86) (35) (121) (104) (17) 4.7 2.0
(1,177) – (1,177) 73 (1,250) 6.0 4.2
* Primarily based on the relevant inter-bank rate.
At 31 December 2003, the Group had investments and advances totalling £172m (30 September 2002 £218m) on which no
interest is receivable and which do not have a maturity date. These interests are denominated primarily in US dollars.
The Group had other creditors and deferred income, denominated primarily in US dollars, due after one year of £97m at
31 December 2003 (30 September 2002 £100m) on which no interest is payable.
At 31 December 2003, the Group had not entered into any interest rate option agreements. At 30 September 2002, the Group
had entered into the following agreements:
30 Sept 2002
Principal Cap rate Swap rate Maturity
US dollar swaption – interest payable US$250m – 3.47% 2005
US dollar cap – interest payable US$100m 4.00% – 2005
Currency risk In order to manage currency risk, the Group enters into agreements for the forward purchase or sale of foreign
currencies as well as currency options. Foreign currency flows in respect of imports and exports are also netted where practical.
As virtually all foreign exchange gains and losses are charged to the Statement of Total Recognised Group Gains and Losses
under the hedging provisions of SSAP 20, no disclosure of the remaining currency risks has been provided on the grounds
of materiality.
At 31 December 2003, the Group had contracted to exchange within one year the equivalent of £49m (30 September 2002 £35m)
of various currencies.
Liquidity risk A liquidity analysis of the Group’s borrowings is provided in note 27, along with details of the Group’s material
unutilised committed borrowing facilities. The liquidity analysis of the Group’s other financial liabilities is set out below:
31 Dec 30 Sept
2003 2002
restated*
Other creditors and deferred income £m £m
Due: between one and two years 36 36
between two and five years 35 39
after five years 26 25
97 100
* Restated for the reclassification of pension provisions (see page 32).