Carphone Warehouse 2004 Annual Report Download - page 42

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Notes to the Financial Statements continued
40
www.cpwplc.com
20 Creditors: Amounts falling due after more than one year
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Loans 107,916 29,832 107,826 27,436
Other creditors 7,469 14,078 5,632 –
Accruals and deferred income 2,352 5,473 – –
117,737 49,383 113,458 27,436
The repayment profile of loans is provided in note 21.
21 Derivatives and other financial instruments
The Operating and Financial Review on pages 6 to 13 provides an explanation of the role that financial instruments have in managing the Group’s
currency and interest rate risk. The disclosures below deal with financial assets and financial liabilities as defined in FRS 13 ‘Derivatives and other
financial instruments’.
As permitted by FRS 13, short-term trade debtors and creditors have been excluded from these disclosures. This has no material effect on the
currency disclosures. Certain financial assets such as investments in subsidiaries are also excluded from the scope of these disclosures.
a) Interest rate and currency profile of financial assets and liabilities
The Group’s financial assets include cash and short-term deposits, mainly denominated in Sterling, Euro and US Dollars. Foreign exchange swaps,
used for hedging purposes, create an asset and a liability. For the purposes of this note, foreign exchange assets and liabilities have been netted
against each other. The Group’s financial liabilities, other than currency hedges, consist of committed and uncommitted loans in Sterling and Euro
as well as local overdraft facilities, which are denominated in several European currencies.
2004 2003
Sterling Euro Other Total Sterling Euro Other Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Financial assets
By instrument
Cash 65,348 6,442 1,023 72,813 32,797 10,200 3,980 46,977
Short-term investments 10,805 – – 10,805 26,276 – – 26,276
Total 76,153 6,442 1,023 83,618 59,073 10,200 3,980 73,253
By interest rate
Floating rate 76,153 6,442 1,023 83,618 59,073 10,200 3,980 73,253
Total 76,153 6,442 1,023 83,618 59,073 10,200 3,980 73,253
Financial liabilities
By instrument
Loans and overdrafts – (124,190) – (124,190) (235) (43,208) (712) (44,155)
Total –(124,190) – (124,190) (235) (43,208) (712) (44,155)
By interest rate
Floating rate – (121,949) – (121,949) (235) (38,607) (712) (39,554)
Fixed rate – (2,241) – (2,241) – (4,601) – (4,601)
Total –(124,190) – (124,190) (235) (43,208) (712) (44,155)
Fixed rate financial liabilities bear weighted average interest rates of 4.84% (2003 – 4.84%) for weighted average periods of 0.3 years (2003 – 0.7 years).
The interest rate on floating rate financial assets and liabilities is linked to market interest rates, mainly on an overnight basis or for one, two or three
month periods.