20 Borrowings
| Current | Effective interest rate | Earlier of repricing date or maturity date |
2007 £m |
2006 £m |
||||||||
| Bank loans – secured | see below | see below | 0.4 | 0.2 | ||||||||
| Bank overdrafts | 3.30% | on demand | 4.0 | 4.0 | ||||||||
| Finance lease liabilities | – | see below | – | 0.1 | ||||||||
| 4.4 | 4.3 | |||||||||||
| Non-Current | Effective interest rate | Earlier of repricing date or maturity date |
2007 £m |
2006 £m |
||||||||
| Bank loans – secured | see below | see below | 2.1 | 2.5 | ||||||||
| Unsecured loan notes – 2000 $75m | 8.23% | 13 September 2010 | 37.6 | 38.2 | ||||||||
| Unsecured loan notes – 2003 $100m | 6.08% | 15 October 2013 | 50.2 | 51.1 | ||||||||
| Unsecured loan notes – 2003 €25m | 5.56% | 15 October 2013 | 18.2 | 16.8 | ||||||||
| Total unsecured loan notes | 106.0 | 106.1 | ||||||||||
| Total non-current borrowings | 108.1 | 108.6 | ||||||||||
At 31 December 2007, the group had available £65.8m (2006: £55.4m) of undrawn committed borrowing facilities in respect of which all conditions precedent had been met.
Secured bank loans
Bank loans are secured by fixed charges over property at three of the group’s subsidiaries. Of these £1.5m is denominated in Chinese renminbi and is repayable by instalments until December 2012 with a fixed interest rate of 7.5%, £0.6m is denominated in US dollars and is repayable by instalments until December 2014 with a variable interest rate of LIBOR plus a small margin, and £0.4m is denominated in euros and is repayable by instalments until December 2012 with a variable interest rate of LIBOR plus a small margin.
Unsecured loan notes
The interest rates on the unsecured loan notes are those contracted on the underlying borrowings before taking into account any cross-currency interest rate swaps, and remain fixed until redemption. On issue of the US$100m loan notes in October 2003, the group entered into a cross-currency interest rate swap which has the effect of converting this US$ borrowing into fixed interest euro-denominated debt. The combined effect of the borrowing and swap arrangement results in euro debt of €90.5m with a fixed interest rate of 5.64%. This interest rate remains fixed until redemption.
Under adopted IFRS, where cross-currency interest rate swaps are used, the value of the underlying US$ borrowing is presented in this borrowings note and the value of the related cross-currency interest rate swaps is presented separately within derivative financial instruments in Note 21. For management purposes, the value attributed to the portion of the swap arrangements that converts US$ borrowings into euro borrowings is viewed as part of the group’s net debt, as analysed below.
| Analysis of net debt | 2007 £m |
2006 £m |
||||||||||
| Bank overdrafts | 4.0 | 4.0 | ||||||||||
| Bank loans – secured | 2.5 | 2.7 | ||||||||||
| Unsecured loan notes | 106.0 | 106.1 | ||||||||||
| Cross-currency interest rate swaps – currency portion (see Note 21) | 16.2 | 9.8 | ||||||||||
| Finance lease liabilities | – | 0.1 | ||||||||||
| Total borrowings | 128.7 | 122.7 | ||||||||||
| Cash balances (see Note 19) | (51.4) | (51.0) | ||||||||||
| Net debt | 77.3 | 71.7 | ||||||||||
| 2007 | 2006 | |||||||||||
| Finance lease liabilities | Minimum lease payments £m |
Interest £m |
Principal £m |
Minimum lease payments £m |
Interest £m |
Principal £m |
||||||
| Less than one year | – | – | – | 0.1 | – | 0.1 | ||||||
| – | – | – | 0.1 | – | 0.1 | |||||||