Notes to the interim financial information continued
unaudited for the six months ended 30th June 2007
7. CASH AND FINANCIAL LIABILITIES
a) Cash balances shown on the Balance sheet at 30th June 2007 include £39.1 million of cash received in respect of a specific property development funding which cannot be utilised for other purposes.
b) At 30th June 2007, an external valuation, undertaken by J C Rathbone Associates Limited, appraised the market value of the Group’s fixed rate debt on a replacement basis, taking into account the difference between fixed interest rates for the Group’s borrowings and the market value and prevailing interest rates of appropriate debt instruments, resulting in an excess of fair value over book value of £8.1 million before tax (30th June 2006: £12.4 million, 31st December 2006: £11.9 million) at that date. The valuation, which is subject to daily fluctuations in line with money market movements, is only an indication of the notional effect on the net asset value of the Group at 30th June 2007 and is not recognised in the Balance sheet.
c) During the period, additional net borrowings of £44.7 million were drawn down (30th June 2006: nil, 31st December 2006: £12.0 million) and £0.1 million loans repaid (30th June 2006: £13.2 million, 31st December 2006: £18.7 million).