NOTES TO
THE FINANCIAL STATEMENTS CONTINUED |
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| 20. SECURITISED RECEIVABLES | ||
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On 25 March 1999 General Guarantee Finance Limited ('GGF'), the major trading subsidiary within the Finance
Division, sold £421m of hire purchase receivables to Automobile Loan Finance (No 1) Limited ('ALF1'). That company
issued debt to finance the purchase of the hire purchase receivables, the written terms of which provide no recourse to
GGF. Neither GGF nor any other member of the Group is obliged, or intends, to support any losses in respect of the
securitised receivables. GGF may offer further hire purchase receivables for purchase by ALF1.
Receipts of interest and principal from GGF's customers in respect of the securitised receivables are used to repay ALF1's obligations on its issued debt and to pay its administrative expenses. Any excess income is payable to GGF and this amounted to £0.6m in the current year. ALF1 is a quasi-subsidiary of the Group. The key elements of its balance sheet at 31 March 1999, which form the basis of the linked presentation in the consolidated balance sheet, are: |
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| Securitied receivables: | ||
| Due within one year | 189.6 | |
| Due in more than one year | 224.3 | |
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| 413.9 | ||
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| Non-recourse borrowings: | ||
| Due in more than one year | 400.0 | |
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| ALF1 also has £21m of subordinated debt which is eliminated in the Group accounts. ALF1's gross financial income and expenses and cash inflows from operating activities were not material in the current year. | ||
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| 21. CURRENT ASSET INVESTMENTS | ||
| The Group |
1999 £m |
1998 £m |
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| Cost: | ||
| Listed investments | ||
| Overseas | 12.3 | 14.0 |
| Great Britain | 0.4 | 0.2 |
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| 12.7 | 14.2 | |
| Certificates of deposit | 20.0 | 15.0 |
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| Total at cost | 32.7 | 29.2 |
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| Market and redemption value: | ||
| Listed investments | ||
| Overseas | 12.8 | 19.1 |
| Great Britain | 0.4 | 0.2 |
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| 13.2 | 19.3 | |
| Certificates of deposit | 20.0 | 15.0 |
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| Market and redemption value | 33.2 | 34.3 |
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