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 2025 |
31 December 2024 |
|---|---|---|
|
Cash at bank and on hand |
572.1 |
460.3 |
|
Short-term bank deposits |
14.3 |
1.6 |
|
Cash and cash equivalents |
586.4 |
461.9 |
|
Bank overdrafts used for cash management purposes - not offset with cash at bank |
(494.8) |
(384.4) |
|
Total cash and cash equivalents and bank overdrafts |
91.6 |
77.5 |
The carrying value of the cash and cash equivalents approximate the fair value.
TMF Group manages a cash pool at HSBC that includes balances in multiple currencies. The majority of these balances are denominated in EUR, USD, GBP, NOK, SGD and DKK. 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 2025 was negative €2.7 million (2024: positive €9.8 million).
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 does not currently face any restrictions on repatriating cash from local offices, although certain countries only permit delayed repatriation via dividends. The Group is required to maintain a specified level of local liquidity in certain jurisdictions in which it is regulated, which amounted to €5.3 million across all jurisdictions as at 31 December 2025 (2024: €4.1 million).