Notes to the Accounts For the year ended 31 December 2007

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21. Cash and cash equivalents

Group Company
  2007
£'000
2006
£'000
2007
£'000
2006
£'000
Cash at bank and in hand 75,647 23,355
Short-term deposits 7,343 12,232
Cash and cash equivalents 82,990 35,587
Bank overdrafts (47,433) (43) (47,433)
Cash and cash equivalents in the statement of cash flows 35,557 35,544 (47,433)
Bank loans (25,300) (39,150) (25,300) (39,150)
Net funds/(debt) 10,257 (3,606) (72,733) (39,150)

The Group has set up a multi-currency notional cash pool in 2007. 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 must be reported ‘gross' on the balance sheet. On a ‘netted' pro forma basis, cash and cash equivalents and overdraft balances would have been £29.5m lower, resulting in £53.5m cash and cash equivalents and £18.0m bank overdraft balances.

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