Travelex Holdings Limited Annual report & consolidated financial ...

Notes to the financial statements continued
for the year ended 31 December 2001
17 Creditors – amounts falling due within one year
45
Travelex Holdings Limited
Group Company
2001 2000 2001 2000
£’000 £’000 £’000 £’000
Bank and other borrowings (note 19) 27,849 9,023 71 –
Obligations under finance leases (note 20) 2,921 1,465 – –
Trade creditors 119,931 18,127 – –
Travellers cheques awaiting redemption (1) 1,476,733 – – –
Forward exchange contracts 387,636 144,011 – –
Corporation tax 1,146 2,736 3,432 –
Other taxes and social security costs 1,376 814 – –
Other creditors 15,772 7,834 – –
Accruals and deferred income 114,855 14,869 347 –
Interest received in advance (2) 42,011 – – –
2,190,230 198,879 3,850 –
(1) Travellers cheques awaiting redemption represents the value of all travellers cheques issued but not encashed. This is then
adjusted to take account of the value of those cheques, which it is anticipated will never be presented for payment.
(2) An amount of the travellers cheque funds have been placed on a series of structured deposits with a bank for a term of 23
years (refer to note 16). The net present value of interest receivable on the deposits has been paid in advance.
18 Creditors – amounts falling due after more than one year
Group Company
2001 2000 2001 2000
£’000 £’000 £’000 £’000
Loans and other borrowings (note 19) 72,151 71,819 – –
Hire purchase and finance lease obligations (note 20) 959 790 – –
Deferred consideration for acquisitions (1) 43,025 6,000 37,025 –
Amounts due to Group undertakings – – 23,783 –
Forward exchange contracts 1,656 – – –
Interest received in advance (2) 197,098 – – –
314,889 78,609 60,808 –
(1) Deferred consideration of £43,025,000 represents: (1) £6,000,000 relating to the acquisition of Transpay in September
1999, and is based on the directors’ best estimate of the balance due on the acquisition. This business is conducted by
the 80% owned subsidiary Travelex Currency Services Limited; (2) £37,025,000 relating to the acquisition of Thomas Cook
Global and Financial Services Group during the current year. The amount is based on the fixed principal payable in 2006
of £47,500,000 discounted to its current net present value.
(2) Refer to notes 16 and 17 for explanation of interest received in advance.