Notes to the Financial Statements

For the short period 1 April 2006 to 3 March 2007

21. CASH AND CASH EQUIVALENTS

      2007
£m
  2006
£m
Cash at bank and in hand     283.8   130.0

The effective interest rate during the period ended 3 March 2007 for cash and cash equivalents was 4.8% (2006: 2.7%).

Under the terms of a re-insurance agreement, bank balances totalling £3.5m (2006: £5.8m) are the subject of custodial agreements and may not be withdrawn without the consent of the re-insured.

Home Retail Group has provided letters of credit totalling £22.6m (2006: £28.2m) to AIG Europe (UK) Limited as part of their
re-insurance agreement. These letters are secured by cash deposits.

back to top    close window