Annual Report & Accounts 2005 - Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
22. FINANCIAL INSTRUMENTS
Where permitted by FRS 13, short-term debtors and creditors are excluded from these disclosures.
DEBT INSTRUMENTS
At the present time, the Company is financed with short-term borrowings and equity. All borrowings at the year
end were at floating rates, repayable on demand and denominated in pounds sterling.
CURRENCY RISK
The Group publishes its financial statements in pounds sterling and conducts some of its business in US dollars. As a
result, it is subject to foreign currency exchange risk due to exchange movements, which will affect the Group’s
transaction costs and translation of the results. No financial instruments are utilised to manage risk and currency
gains, and losses are charged to the profit and loss account as incurred. At the year end, the Group had the
following net foreign currency debtors or creditors:
2005 2004
£ £
Euros Debtor – 34,483
US Dollars Creditor 30,323 37,311
INTEREST RISK
The Group has an exposure to interest rate risk. Currently, the directors utilise variable rate borrowings.
LIQUIDITY
An analysis of financial liabilities is set out in note 13.
FAIR VALUES
The directors consider that the carrying value of financial assets and liabilities is not materially different to their
fair values.
FOR THE YEAR ENDED 31 DECEMBER 2005 - CONTINUED
