PA Group Annual Report 2007
27. Reconciliation of net debt
1 January Other non 31 December
2007 Cash flow cash changes 2007
£000 £000 £000 £000
Cash 339 953 - 1,292
Overdraft - (3,739) - (3,739)
339 (2,786) - (2,447)
Short term deposits 950 (748) - 202
Debt due within 1 year (2,409) 1,156 1,042 (211)
Debt due after 1 year (3,949) - (1,042) (4,991)
Finance lease due within 1 year (301) 301 (315) (315)
Finance lease due after 1 year (881) - 315 (566)
Net debt (6,251) (2,077) - (8,328)
Short-term deposits include all funds that are not immediately available to the group without interest penalty.
28. Pensions

The group operates a defined benefit pension scheme, the Press Association Pension Fund (1992). The funds are
administered by trustees and are independent of the group’s finances. Contributions are paid to the fund in accordance with the
recommendations of an independent actuarial adviser.
The group also operates a defined contribution scheme (a group personal pension plan) for staff not eligible to join the
defined benefit scheme and other defined contribution schemes for a small number of senior executives and directors.
The full actuarial valuation as at 31 December 2005 was updated to the accounting date by an independent qualified actuary
in accordance with FRS 17. As required by FRS 17, the value of the defined benefit liabilities has been measured using the
projected unit method.
The key FRS 17 assumptions used for the scheme are set out below, along with the fair value of assets, a breakdown of
the assets into the main asset classes, the present value of the FRS 17 liabilities and the surplus of assets above the FRS 17
liabilities (which equals the Gross pension asset).
The main assumptions used were: 31 Dec 2007 31 Dec 2006 31 Dec 2005
Price Inflation 3.4% 3.0% pa 2.8% pa
Discount rate 5.6% 5.0% pa 4.7% pa
Pension increases (LPI) 3.4% 2.9% pa 2.8% pa
Salary growth 3.4%+ salary scale 3% pa + salary scale 4.8% pa
On the basis of the assumptions used for life expectancy, a male pensioner currently aged 63 would be expected to live for a
further 24 years (2006: 24 years). Allowance is made for future improvements in life expectancy.
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