Carphone Warehouse 2005 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2005 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 62

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62

The Carphone Warehouse Group PLC Annual Report 2005
Notes to the Financial Statements continued
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:
2005 2004
Sterling Euro Other Total Sterling Euro Other Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Functional currency of Group operation
Sterling – (103,894) 12,196 (91,698) – (124,694) 178 (124,516)
Other 218 2 – 220 338 320 – 658
Total 218 (103,892) 12,196 (91,478) 338 (124,374) 178 (123,858)
Euro liabilities held by companies operating in Sterling include the Group’s term loan, which is drawn in Euros to fund overseas investments, and of which £105m
remains unamortised at 2 April 2005.
(c) Maturity of financial liabilities
The maturity profile of the Group’s financial liabilities at 2 April 2005 was as follows:
2005 2004
£’000 £’000
In one year or less (71,994) (19,190)
In more than one year but not more than two years (30,000) (30,000)
In two to five years (68,494) (75,000)
Total (170,488) (124,190)
(d) Borrowing facilities
The Group had undrawn committed borrowing facilities at 2 April 2005, in respect of which all conditions precedent had been met, as follows:
2005 2004
£’000 £’000
Expiring in more than one year but not more than two years –(180,000)
Expiring in two to five years (275,000) –
Total (275,000) (180,000)
(e) Fair values
The book and fair values of the Group’s financial assets and liabilities at 2 April 2005 were as follows:
2005 2004
Book value Fair value Book value Fair value
£’000 £’000 £’000 £’000
Financial assets
Cash 41,576 41,576 72,813 72,813
Short-term investments 60,468 62,613 10,805 11,907
Financial liabilities
Loans and overdrafts (170,488) (170,488) (124,190) (124,190)
Forward foreign currency contracts – (167) – 200
Cash, loans and overdrafts have been included at carrying value; the fair value of short-term investments has been derived by 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) Unrecognised gains and losses
At 2 April 2005, the Group had unrecognised gains of £2.0m (2004 – £1.3m), all of which are expected to be recognised in the period ending 1 April 2006. During the
period a gain of £1.3m was recognised in relation to previous periods (2004 – £0.2m loss).
50