Carphone Warehouse 2016 Annual Report Download - page 137

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135
26 Financial risk management and derivative financial instruments continued
d) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Group manages its exposure to liquidity risk by reviewing
regularly the long term and short term cash flow projections for the business against the resources available to it.
In order to ensure that sufficient funds are available for ongoing and future developments, the Group has committed bank
facilities, excluding overdrafts repayable on demand, totalling £800 million (2015: £875 million). Further details of committed
borrowing facilities are shown in note 18.
The table below analyses the Group’s financial liabilities and derivative assets and liabilities into relevant maturity groupings.
The amounts disclosed in the table are the contractual undiscounted cash flows, including both principal and interest flows,
assuming that interest rates remain constant and that borrowings are paid in full in the year of maturity.
Within
one year
£million
In more
than one
year but
not more
than five
years
£million
In more
than five
years
£million
Total
£million
30 April 2016
Finance leases (9) (35) (111) (155)
Derivative financial instruments – payable:
Forward foreign exchange contracts (2,856) — — (2,856)
Interest rate swaps (1) (1) — (2)
Derivative financial instruments – receivable:
Forward foreign exchange contracts 2,832 — — 2,832
Loans and other borrowings (7) (441) — (448)
Deferred consideration (12) (19) (2) (33)
Trade and other payables (2,112) (266) — (2,378)
Within
one year
£million
In more
than one
year but
not more
than five
years
£million
In more
than five
years
£million
Total
£million
2 May 2015
Finance leases (8) (33) (114) (155)
Derivative financial instruments – payable:
Forward foreign exchange contracts (1,540) — — (1,540)
Interest rate swaps (2) (2) — (4)
Derivative financial instruments – receivable:
Forward foreign exchange contracts 1,530 — — 1,530
Loans and other borrowings (64) (337) — (401)
Deferred consideration (25) (6) — (31)
Trade and other payables (1,584) (349) — (1,933)
00_DC 2016 Annual Report.pdf 135 11/07/2016 18:34