Holiday Inn 2004 Annual Report Download - page 64

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29 FINANCIAL INSTRUMENTS (CONTINUED)
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
31 December 2003 £m £m £m £m £m % (years)
Current asset investments and cash at bank and in hand:
Sterling 377 934 1,311 1,311–––
US dollar 9 – 9 9 – – –
Other 46 – 46 46–––
Borrowings:
Sterling (24) – (24) (3) (21) 5.0 4.1
US dollar (337) (615) (952) (301) (651) 4.7 1.5
Euro (514) (258) (772) (403) (369) 4.8 4.7
Hong Kong dollar (84) – (84) (57) (27) 5.2 0.8
Other (42) (61) (103) (82) (21) 4.7 0.7
(569) – (569) 520 (1,089) 4.8 2.6
* Primarily based on the relevant inter-bank rate.
At 31 December 2004, the Group had investments totalling £175m (2003 £172m) 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 £96m at 31 December
2004 (2003 £97m) on which no interest is payable.
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 inflows and outflows 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 2004, the Group had contracted to exchange within one year the equivalent of £204m (2003 £49m) of various
currencies.
Liquidity risk A liquidity analysis of the Group’s borrowings is provided in note 28, 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
31 Dec 2003
2004 restated*
Other financial liabilities £m £m
Due: between one and two years 26 36
between two and five years 33 40
after five years 89 72
148 148
* Restated to include certain provisions for liabilities and charges on a basis consistent with 2004.
Notes to the financial statements
62 InterContinental Hotels Group 2004