true value for investors
true value for investors
The Randstad share reflects true value for investors. This may sound odd, given that Total Shareholder Return amounted to minus 42% in 2008 and that no dividend will be paid for 2008. However, long-term prospects are positive.

20. Financial assets

  2008  2007
       
Held-to-maturity investments 54.7   5.9
Loans and receivables 6.7   4.3
Investment 12.6   -
       
  74.0   10.2

The held-to-maturity investments, loans and receivables are neither past due nor impaired. These financial assets have counterparties such as (semi-) governmental bodies or insurance companies.
The investment represents solely the 10% shareholding of € 12.6 million in a Japanese staffing company and is valued at cost, since the Group holds a put option to sell back the shares at the original purchase price. The amount paid is included in the cash flow statement under loans and receivables.
The Group does not hold any collateral as security.

Changes in held-to-maturity investments are:

  2008  2007
       
Value at January 1 6.2   5.4
Acquisition of subsidiaries 45.8   -
Additions 4.2   0.5
Redemptions -1.4   -
Interest due to passage of time 1.6   0.3
       
Value at December 31 56.4   6.2
       
Non-current portion 54.7   5.9
Current portion 1.7   0.3
     
Total held-to-maturity investments 56.4   6.2

Held-to-maturity investments relate to interest-free loans with an average remaining term of 13 years (2007: 13 years) and an effective interest rate of 4.8% (2007: 5.5%). The nominal value of held-to-maturity investments amounts to € 100 million (2007: 11 million) and represents best the maximum exposure to credit risk. The book value of held-to-maturity investments approximates the fair value as of January 1 and December 31, 2008.

Changes in loans and receivables are:

  2008  2007
       
Value at January 1 4.3   4.2
       
Acquisitions of subsidiaries 3.1   -
Additions 0.2   0.2
Redemptions -0.8   -
Translation losses -0.1   -0.1
       
Value at December 31 6.7   4.3

The loans and receivables are expected to be non-current in full.

The loans and receivables do not have a fixed maturity date; the average effective interest rate is 4.0% (2007: 4.0%). The book value of the loans and receivables approximates the fair value as of January 1 and December 31, 2008, and represents best the maximum exposure to credit risk.