Notes to the accounts

year ended 30 June 2001

15 Financial 

The Group's financial instruments at 30 June 2001 comprised cash,

Instruments

investments in managed funds and various items such as trade debtors and

trade creditors, that arise directly from its operations. The main purpose of

these financial instruments is to finance the Group's acquisitions and

expansion and to enable the settlement of ongoing debts.

Short term debtors and creditors have been omitted from all disclosures

other than the currency profile.

The main risks arising from the Group's financial instruments are interest

rate risk, foreign currency risk and liquidity risk.

Interest rate risk

The Group finances its operations through shareholder equity and working

capital. Throughout the year the Group's only exposure to interest rate

fluctuations was on its cash deposits, investments and finance leases.

Interest rate profile

Floating

rate

financial

Finance

Total

assets

leases

Group

 '000

 '000

 '000

At 30 June 2001

Sterling

911

1,344

(433)

US dollar

11

11

French franc

40

40

Gross assets

962

1,395

(433)

At 30 June 2000

Sterling

6,248

6,248

US dollar

(3)

(3)

French franc

55

55

Gross assets

6,300

6,300

Company

At 30 June 2001

Sterling

1,292

1,292

US dollar

(9)

(9)

French franc

Gross assets

1,283

1,283

At 30 June 2000

Sterling

5,730

5,730

US dollar

French franc

Gross assets

5,730

5,730

Interest on finance leases is charged at base rate plus 1.6 per cent.

33