Annual report and accounts - Cattles Limited

64 Cattles plc Annual Report and Financial Statements 2004
Notes to the Accounts
19 Financial instruments continued
Fair values
The table set out below details the book and fair values for some of the group’s financial instruments. This analysis excludes
those financial assets which are not listed or publicly traded, and for which no liquid and active market exists. It, therefore,
excludes customers’ accounts receivable.
2004 2003
The estimated fair value of financial assets and Book value Fair value Book value Fair value
financial liabilities at 31 December 2004 was: £’000 £’000 £’000 £’000
Hedging contracts:
Interest rate caps 354 113 721 386
Interest rate collars 20 (121) 55 (735)
Interest rate swaps – (2,965) – (3,744)
Cash (net of overdraft) 8,229 8,229 33,052 33,052
Current asset investments (note 17) 74,986 74,986 61,192 61,192
Bank borrowings (note 18) (584,000) (583,866) (390,300) (390,979)
Debenture loans and other borrowings (note 18) (625,048) (626,882) (618,967) (622,318)
Deferred consideration due after more than one year (594) (594) (2,803) (2,803)
The fair values of cash at bank, bank overdrafts and current asset investments approximate to book value due to their
relatively short maturity.
The book value of deferred consideration is discounted, in accordance with FRS 7 ‘Fair values in acquisition accounting’, and
therefore equates to fair value.
The fair values of longer term bank borrowings, debenture loans and other borrowings and related financial hedging
instruments are estimated by discounting the associated future cash flows to net present values using appropriate market
rates prevailing at 31 December 2004.
20 Equity share capital
Number £’000
Authorised Ordinary shares of 10p each 500,000,000 50,000
Allotted, called up and fully paid Ordinary shares of 10p each
At 1 January 2004 327,964,507 32,796
Exercise of options 714,811 72
At 31 December 2004 328,679,318 32,868