Carphone Warehouse 2004 Annual Report Download - page 43

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The Carphone Warehouse Group PLC Annual Report 2004
41
21 Derivatives and other financial instruments continued
b) Currency exposures
The extent to which Group companies have financial assets or liabilities in currencies other than their own functional currencies is as follows:
2004 2003
Sterling Euro Other Total Sterling Euro Other Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Functional currency of Group operation
Sterling – (124,694) 178 (124,516) – 4,220 3,064 7,284
Other 338 320 – 658 1,245 397 – 1,642
Total 338 (124,374) 178 (123,858) 1,245 4,617 3,064 8,926
Euro liabilities held by companies operating in Sterling include the Group’s £120m term loan, which is drawn in Euros to fund overseas investments.
c) Maturity of financial liabilities
The maturity profile of the Group’s financial liabilities at 27 March 2004 was as follows:
2004 2003
£’000 £’000
In one year or less (19,190) (14,318)
In more than one year but not more than two years (30,000) (2,401)
In two to five years (75,000) (27,436)
Total (124,190) (44,155)
d) Borrowing facilities
The Group had undrawn committed borrowing facilities at 27 March 2004, in respect of which all conditions precedent had been met, as follows:
2004 2003
£’000 £’000
Expiring in more than one year but not more than two years (180,000) –
Expiring in more than two years –(152,564)
Total (180,000) (152,564)
e) Fair values
The book and fair values of the Group’s financial assets and liabilities at 27 March 2004 were as follows:
2004 2003
Book value Fair value Book value Fair value
£’000 £’000 £’000 £’000
Financial assets
Cash 72,813 72,813 46,977 46,977
Short-term investments 10,805 11,907 26,276 26,489
Financial liabilities
Loans and overdrafts (124,190) (124,190) (44,155) (44,155)
Interest rate swaps –––(100)
Forward foreign currency contracts – 200 – (813)
Cash, loans and overdrafts have been included at carrying value; the fair value of short-term investments has been derived with reference to market
values; other fair values have been arrived at by discounting future cashflows, assuming no early redemption, or marking deals to period-end market
rates or rates as appropriate to the instrument.
f) Gains and losses on hedges
At 27 March 2004, the Group had unrecognised gains of £1.3m (2003 – net losses of £0.9m), of which £0.2m arose from timing differences
connected with currency hedging. Unrecognised gains of £1.3m are expected to be recognised in the period ending 2 April 2005.