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Notes to the Financial Statements
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45 23.3 Interest rate risk The Group earns interest from bank deposits. During the year, the Group held cash on deposits with a range of maturities of less than three months. The Group had no committed borrowing facilities as at 31 December 2008. Management do not consider the impact of possible interest rate movements based on current market conditions to be material to the net result for the year or the equity position at the year end for either the year ended 31 December 2007 or 31 December 2008. 23.4 Credit risk The Group has no significant concentrations of credit risk with exposure spread over a large number of customers. The Group does not grant credit facilities to any of its customers and the maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. The Group has material exposure to credit risk through amounts owed by Webdollar (a third party collection agency owned by Boss Media, the Group’s principal software provider) of c2.04m (2007: c2.07m) and cash balances held with Barclays Bank plc of c17.2 million (2007: c14.1 million). The Group considers the credit risk associated with these balances to be low, having assessed the credit ratings and financial strength of the counter-parties involved. The Group is seeking to diversify its banking deposits to further reduce credit risk. No provision for impairment has been made at 31 December 2008 (2007: nil). No receivable amounts were past due date at 31 December 2008 (2007: nil). 23.5 Liquidity risk At 31 December 2008, the Group had cash and cash equivalents of c18.8 million (2007: c15.9 million) and considers liquidity risk to be low for the business. All liabilities at the year end are due within one year. 23.6 Fair Values The carrying amounts of the financial assets and liabilities in the balance sheet at 31 December 2008 and 2007 for the Group and Company are a reasonable approximation of their fair values. All trade and other receivables and payables have a maturity of less than one year. 23.7 Summary of financial assets and liabilities by category The carrying amounts of the group’s financial assets and liabilities recognised at the balance sheet date are categorised as follows: 31 Dec 31 Dec 2008 2007 d000’s c000’s Current assets Loans and receivables 6,077 3,561 Cash and cash equivalents 18,834 15,859 Current liabilities Financial liabilities measured at amortised cost: trade and other payables 5,477 4,404