20 Financial instruments

Short-term debtors and creditors have been excluded from all the following disclosures, other than the currency risk disclosures. Policies in respect of financial investments are contained within the Treasury section of the financial review.

(a) Cash at bank and in hand

	Group
	2000 £million	1999 £million
Sterling cash deposits	32.0	56.3
US dollar cash deposits	5.0	5.4
Cash at bank	14.2	18.2
	51.2	79.9

Sterling and US dollar cash deposits are placed on the UK money markets at floating bank deposit interest rates for periods of up to three months. Cash at bank is primarily held in sterling and US dollars.

(b) Borrowings

	Group		Company
	2000	1999	2000	1999
	£million	£million	£million	£million
Borrowings repayable within one year	7.3	11.2	6.5	7.7
Borrowings repayable after one year	85.6	114.2	-	-
	92.9	125.4	6.5	7.7
Bank borrowings - repayable
In one year or less, or on demand	0.8	1.6	-	-
In more than two and less than five years	85.6	114.2	-	-
	86.4	115.8	-	-
Borrowings other than bank borrowings
Loan notes	6.5	7.7	6.5	7.7
Other unsecured	-	1.9	-	-
	6.5	9.6	6.5	7.7

Bank borrowings are unsecured.

Borrowings other than bank borrowings are repayable in one year or less or on demand. Loan notes bear interest at six monthly intervals at one per cent below sterling LIBOR; these are redeemable at par at the option of holders on any interest payment date, and in any event on 30 April 2005.

The Group had undrawn committed facilities available to it at 31 December 2000 of £164.0 million (1999: £135.1 million); these expire in more than two years, and less than five years.

Currency and interest rate profile of the Group at 31 December was:

	Weighted average fixed interest rate	Weighted average period for which rate is fixed	Fixed rate	Floating rate	2000 Total
Currency	%	years	£million	£million	£million
Sterling	-	-	-	6.9	6.9
US dollar	6.8	0.4	40.3	26.4	66.7
Euro bloc	-	-	-	19.2	19.2
Other	-	-	-	0.1	0.1
		0.4	40.3	52.6	92.9

	Weighted average fixed interest rate	Weighted average period for which rate is fixed	Fixed rate	Floating rate	1999 Total
Currency	%	years	£million	£million	£million
Sterling	11.0	0.8	1.9	7.7	9.6
US dollar	6.8	1.4	37.3	59.3	96.6
Euro bloc	-	-	-	18.9	18.9
Other	-	-	-	0.3	0.3
		1.4	39.2	86.2	125.4

The profile takes into account interest rate swaps. The majority of floating rate borrowings are for periods of up to six months and bear interest at the relevant inter bank rates plus a margin.

(c) Fair values and hedges
The fair value of cash at bank and in hand and borrowings for the Group and the Company at 31 December 2000 was approximately equal to the book value at that date. The fair value of interest rate swaps held by the Group for hedging purposes was £nil at 31 December 2000 (1999: £0.1 million adverse). Movements in unrecognised gains/(losses) on hedges during the year were:

	£million
Unrecognised losses on hedges at 1 January 2000	(0.1)
Gains arising during the year	0.1
Unrecognised gains/(losses) on hedges at 31 December 2000	-

(d) Monetary assets and liabilities
The value of monetary assets and liabilities of the Group not held in functional currencies and not hedged at 31 December was as follows:

	Sterling	US dollar	Euro bloc	Other	2000 Total
	£million	£million	£million	£million	£million
Functional currency
Sterling	-	2.2	7.2	0.2	9.6
US dollar	-	-	-	-	-
Euro bloc	-	-	-	-	-
Other	-	2.4	-	-	2.4
	-	4.6	7.2	0.2	12.0

	Sterling	US dollar	Euro bloc	Other	1999 Total
	£million	£million	£million	£million	£million
Functional currency
Sterling	-	3.8	3.5	0.3	7.6
US dollar	-	-	-	0.2	0.2
Euro bloc	-	-	-	-	-
Other	(0.4)	0.1	-	0.3	-
	(0.4)	3.9	3.5	0.8	7.8

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