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Annual Report & Accounts 2007
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12 Trade and other payables 31 December 31 December In thousands of euro 2007 2006 Other trade payables 1,538 1,317 Accrued expenses 2,910 1,101 Withholding tax on dividends ^ 1,203 4,448 3,621 13 Financial instruments and risk management The Group’s principal ˘nancial instruments as at 31 December 2007 comprise cash and cash equivalents. The main purpose of these ˘nancial instruments is to ˘nance the Group’s operations. The Group has other ˘nancial instruments which mainly comprise receivables and payables which arise directly from its operations. Cash and cash equivalents and trade and other receivables have been classi˘ed as loans and receivables and trade and other payables as ˘nancial liabilities measured at amortised cost. During the year the Group did not use derivative ˘nancial instruments to hedge its exposure to foreign exchange or interest rate risks arsing from operational, ˘nancing and investment activities. The Group does not hold or issue derivative ˘nancial instruments for trading purposes. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income or value of its holdings of ˘nancial instruments. Exposure to market risk (which includes currency and interest rate risk) and credit risk arises in the normal course of the Group’s business. Foreign exchange risk Foreign exchange risk arises from transactions, recognised assets and liabilities and net investments in foreign operations. The Group does not use foreign exchange contracts to hedge its currency risk. The Group dividend is declared in Euros (EUR) as a Luxembourg company, it is then paid in Pounds Sterling (GBP) at the exchange rate ruling when the dividend is declared. The Group considers its net exposure to currency risk to be low and that the potential savings from managing this exposure to be minimal. The Group has investments in foreign operations which are all denominated in Euros minimising the Group’s exposure to currency translation risk. Financial assets and ˘nancial liabilities by currency Trade and other Receivables 31 December 31 December In thousands of euro 2007 2006 Euro 4,125 2,146 Sterling 70 12 USD 100 147 Other ^ 4 4,295 2,309 26