Notes to the Accounts
For the year ended 31 December 2008
21. Cash and cash equivalents
| Group | Company | |||
|---|---|---|---|---|
| 2008 £’000 |
2007 £’000 |
2008 £’000 |
2007 £’000 |
|
| Cash at bank and in hand | 133,467 | 75,647 | – | – |
| Short-term deposits | 23,513 | 7,343 | – | – |
| Cash and cash equivalents | 156,980 | 82,990 | – | – |
| Bank overdrafts | (62,697) | (47,433) | (62,697) | (47,433) |
| Cash and cash equivalents in the statement of cash flows | 94,283 | 35,557 | (62,697) | (47,433) |
| Bank loans | – | (25,300) | – | (25,300) |
| Net funds/(debt) | 94,283 | 10,257 | (62,697) | (72,733) |
The Group operates a multi-currency notional cash pool. Currently the main Eurozone subsidiaries and the UK-based Group Treasury subsidiary participate in this cash pool, although it is the Group’s intention to extend the scope of the participation to other Group companies going forward. The structure facilitates interest and balance compensation of cash and bank overdrafts. This notional pooling does not meet the strict set-off rules under IFRS and as a result the cash and bank overdraft balances have been reported ‘gross’ on the balance sheet. On a ‘netted’ pro forma basis, cash and cash equivalents and overdraft balances would have been £62.7m lower, resulting in £94.3m cash and cash equivalents and £nil bank overdraft balances.