28. Additional cash flow information

Reconciliation of net cash flow to movement in net funds/(debt)

	Net debt at 1 January 2008 £m	Acquisitions in 2008 (exc. cash) £m	Cash flow movements £m	Non cash-flow movements £m	Net debt at 31 December 2008 £m
Cash and cash equivalents	0.8	–	85.9	–	86.7
Overdrafts	(46.1)	–	46.1	–	–
Cash	(45.3)	–	132.0	–	86.7
Loan notes	(1.7)	–	3.3	(5.3)	(3.7)
Bonds_†	(461.1)	–	(199.5)	(292.5)	(953.1)
Currency swaps in relation to US$ denominated bonds_†	(18.1)	–	–	287.7	269.6
Interest rate swaps in relation to GBP denominated bonds_†	0.1	–	–	4.6	4.7
Finance leases	(0.2)	–	0.2	–	–
Sub-total net debt	(526.3)	–	(64.0)	(5.5)	(595.8)
Asset based securitised finance*	(9.7)	–	(0.7)	–	(10.4)
Callable swaps	–	–	–	(32.0)	(32.0)
	(536.0)	–	(64.7)	(37.5)	(638.2)

The aggregate bond fair value above of £953.1m (disclosed in note 21 – Financial liabilities) includes the GBP value of the US$ denominated bonds at 31 December 2008. To remove the Group’s exposure to currency fluctuations it has entered into currency swaps which effectively hedge the movement in the underlying bond fair value. The interest rate swap is being used to hedge the exposure to changes in the fair value of GBP denominated bonds. The combined fair value of the swaps, of £274.3m, is disclosed in note 15 – Financial assets.

†The sum of these items held at fair value equates to the underlying value of the Group’s bond debt of £678.8m.

*The asset based securitised finance movement represents the net movement on the underlying balances with customers.

	Notes	Net debt at 1 January 2007 £m	Acquisitions in 2007 (exc. cash) £m	Cash flow movements £m	Non cash-flow movements £m	Net debt at 31 December 2007 £m
Cash and cash equivalents		9.7	–	(8.9)	–	0.8
Overdrafts		(0.5)	–	(45.6)	–	(46.1)
Cash		9.2	–	(54.5)	–	(45.3)
Loan notes		(22.2)	–	26.4	(5.9)	(1.7)
Long term debt		–	(8.2)	8.2	–	–
Bonds		(372.0)	–	(100.6)	11.5	(461.1)
Currency swaps in relation to US$ denominated bonds		(6.4)	–	–	(11.7)	(18.1)
Interest rate swaps in relation to GBP denominated bonds		–	–	–	0.1	0.1
Finance leases		(0.5)	(0.1)	0.4	–	(0.2)
Sub-total net debt		(391.9)	(8.3)	(120.1)	(6.0)	(526.3)
Asset based securitised finance	21	(27.5)	–	17.8	–	(9.7)
		(419.4)	(8.3)	(102.3)	(6.0)	(536.0)