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Notes to the consolidated financial statements
Year ended 31 July 2007
22. Cash and cash equivalents
| 2007 £m |
2006 £m |
|
|---|---|---|
| Cash and cash equivalents | 238 | 359 |
| Short-term bank deposits | 6 | 57 |
| Total cash and cash equivalents | 244 | 416 |
The effective interest rate as at 31 July 2007 on cash and cash equivalents was 3.3 per cent (2006: 2.1 per cent). The average maturity of short-term bank deposits was 12 weeks (2006: one week). The fair values of cash and cash equivalents approximate to book value due to their short maturities.
Cash and cash equivalents includes an amount of £24 million held in escrow to settle deferred consideration on acquisitions (2006: £5 million).
| The currency analysis of cash and cash equivalents is as follows: | £m | £m |
|---|---|---|
| Sterling | 7 | 104 |
| US dollar | 164 | 230 |
| Euro | 27 | 56 |
| Other | 46 | 26 |
| Total | 244 | 416 |