23. Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. In the consolidated balance sheet bank overdrafts are shown within borrowings in current liabilities.
|
In millions of Euro |
31 December 2023 |
31 December 2022 |
|---|---|---|
|
Total cash and cash equivalents and bank overdrafts |
90.2 |
- |
|
Cash at bank and on hand |
327.8 |
- |
|
Short-term bank deposits |
28.2 |
- |
|
Cash and cash equivalents |
356.0 |
- |
|
Bank overdrafts used for cash management purposes - not offset with cash at bank |
(265.8) |
- |
The carrying value of the cash and cash equivalents approximate the fair value.
TMF Group manages a cash pool at HSBC which contains many currencies. The majority of these currencies are denominated in Euro, US Dollar, GBP, HKD and SGD. In this cash pool, the account balances are notionally offset for interest purposes without the central movement of funds. Interest is earned on the net balance of the pool. The total net balances in the cash pool as at 31 December 2023 was €7.8 million.
Short-term bank deposits contain short-term investment in money market fund with HSBC US Dollar Liquidity Fund, Low Volatility NAV Money Market Fund under the European Union Money Market Fund Regulations with primary exposure in USD. It is short-term, highly liquid investment readily convertible to known amount of cash and subject to an insignificant risk of changes in value, hence it is classified as cash equivalent with outstanding balance of €19.6 million as at 31 December 2023.
Significant restrictions
Exchange control restrictions or other restrictions regarding the repatriation of funds from certain countries in which TMF Group operates (including regulatory capital restrictions) could hinder our ability to make foreign investments and procure foreign denominated financing.
TMF Group regularly repatriates cash to avoid high cash balances accumulating in local offices. TMF Group currently does not face any restrictions to repatriate cash from local offices, albeit that certain countries only permit a delayed repatriation via dividends. The Group is required to maintain a specified level of local liquidity in certain of the jurisdictions in which it is regulated, which amounted to €2.8 million across all jurisdictions as at 31 December 2023.