NOTES TO
THE FINANCIAL STATEMENTS CONTINUED |
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| 32. FINANCIAL INSTRUMENTS | |||||||||||||
| The section headed Treasury Policy and Borrowings within the Financial Review details the Group's
policy for the holding and issuing of financial instruments. FRS 13 'Derivatives and other Financial Instruments:
disclosures', which was published during the year, also requires numerical disclosures in respect of financial assets and
liabilities and these are set out below. The Group has taken advantage of the exemption available under the FRS and
details in respect of short term debtors and creditors are accordingly excluded.
(a) Fair values of financial assets and financial liabilities
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| Book value £m |
Fair value £m |
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| Debtors due in more than one year | 537.5 | 537.5 | |||||||||||
| Current asset investments | 32.7 | 33.2 | |||||||||||
| Bank balances and cash | 253.6 | 253.6 | |||||||||||
| Financial assets | 823.8 | 824.3 | |||||||||||
| Long term borrowings | (512.7) | (512.7) | |||||||||||
| 311.1 | 311.6 | ||||||||||||
| Derivative financial instruments held to manage the interest rate and currency profile: | |||||||||||||
| Interest rate swaps | (5.4) | ||||||||||||
| Tax equalisation swap in respect of currency exposure on long term borrowings |
(8.1) | (8.1) | |||||||||||
| Forward foreign currency contracts | 2.3 | ||||||||||||
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| (B)Interest rate risk profile: | |||||||||||||
| The interest rate risk profile of the Group's long term debtors by currency at 31 March 1999 is as follows: | |||||||||||||
| Total £m |
Floating rate debtors £m |
Fixed rate debtors £m |
Debtors on which no interest is earned £m |
|
| Finance Division - Sterling | 376.7 | 14.1 | 362.6 | |
| South African retailing - Rand | 24.2 | 24.2 | ||
| European Home Shopping - Euro | 117.8 | 87.8 | 30.0 | |
| Other | 18.8 | 12.7 | 6.1 | |
| Total | 537.5 | 101.9 | 429.5 | 6.1 |
| Fixed rate debtors | ||||
| Weighted average interest rate % |
Weighted average period for which rate is fixed Years |
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| Finance Division - Sterling | 11 | 3 | ||
| South African retailing - Rand | 35 | 2 | ||
| European Home Shopping - Euro | 18 | 3 | ||
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| The floating rate debtors earn interest at rates generally determined by local regulation. | ||||