Full Annual Report - Inchcape

Financial statements
Notes to the accounts continued
22 Borrowings continued
The table below sets out the maturity profile of the Group’s borrowings that are exposed to interest rate risk. This analysis is presented
after taking account of the cross currency fixed to floating interest rate swap on US$436m of the Private Placement.
2009
Fixed rate
Less than
one year
£m
Between one
and two years
£m
Between two
and three years
£m
Between three
and four years
£m
Between four
and five years
£m
Greater than
five years
£m
Total interest
bearing
£m
Bank loans 4.4 – – – – – 4.4
Other loans 0.1 – – – – – 0.1
Finance leases 0.3 0.1 0.1 – – 2.3 2.8
Floating rate
Bank overdrafts 122.4 – – – – – 122.4
Bank loans 35.0 – – – – – 35.0
Other loans 1.2 – – – – – 1.2
Private Placement – – – – – 294.8 294.8
Finance leases 0.9 0.6 0.4 – – – 1.9
2008
Fixed rate
Less than
one year
£m
Between one
and two years
£m
Between two
and three years
£m
Between three
and four years
£m
Between four
and five years
£m
Greater than
five years
£m
Total interest
bearing
£m
Bank loans 3.5 0.2 0.3 0.1 – – 4.1
Other loans 7.4 – – – – – 7.4
Private Placement – – – – – 52.1 52.1
Finance leases 0.3 0.1 0.1 0.1 0.1 2.3 3.0
Floating rate
Bank overdrafts 144.9 – – – – – 144.9
Bank loans 3.0 35.0 – – 370.0 – 408.0
Other loans 1.8 – – – – – 1.8
Private Placement – – – – – 391.8 391.8
Finance leases 4.1 0.9 1.0 – – – 6.0
23 Financial instruments
The Group’s financial liabilities, other than derivatives, comprise bank loans and overdrafts, loan notes, finances leases and trade
and other payables. The main purpose of these instruments is to raise finance for the Group’s operations. The Group also has various
financial assets such as trade and other receivables, cash and short-term deposits which arise from its trading operations.
The Group’s primary derivative transactions are forward and swap currency contracts, and cross currency interest rate swaps.
The purpose is to manage the currency and interest rate risks arising from the Group’s trading operations and its sources of finance.
The main risks arising from the Group’s financial instruments are interest rate risk, currency risk, credit risk and liquidity risk.
a. Classes of financial instruments
2009
Loans and
receivables
£m
Available for
sale
£m
Held at fair
value
£m
Amortised
cost
£m
Financial assets
Available for sale financial assets – 18.5 – – 18.5
Trade and other receivables 245.0 – – – 245.0
Derivative financial instruments – – 91.0 – 91.0
Cash and cash equivalents – – – 381.3 381.3
Total financial assets 245.0 18.5 91.0 381.3 735.8
Financial liabilities
Trade and other payables – – – (891.0) (891.0)
Derivative financial instruments – – (21.8) – (21.8)
Borrowings – – – (465.2) (465.2)
Total financial liabilities – – (21.8) (1,356.2) (1,378.0)
245.0 18.5 69.2 (974.9) (642.2)
Total
£m
120
Inchcape plc ¦ Annual Report and Accounts 2009