Notes to the accounts
20 Borrowings and net debt
This note sets out the calculation of net debt, a measure considered important in explaining our financing position. The net debt figure includes accrued interest and the fair value adjustments relating to hedge accounting.
|
2008 |
2007 |
|
|
Cash and cash equivalents |
||
|
Net cash and deposits including assets of disposal group (note 17) |
132.5 |
189.3 |
|
Short-term borrowings |
||
|
Bank overdrafts including impact of cash pooling gross up: £100.6m (2007: £123.2m) |
(172.5) |
(186.2) |
|
Bank loans |
(0.3) |
(0.2) |
|
Other loans |
(3.5) |
(3.1) |
|
B shares (note 26) |
(1.7) |
(18.1) |
|
Interest accrual |
(4.4) |
(4.5) |
(182.4) |
(212.1) |
|
|
Long-term borrowings |
||
|
7.875% Sterling Eurobond 2010 |
(149.6) |
(149.5) |
|
7.25% Sterling Eurobond 2016 |
(148.8) |
(148.7) |
|
5.45% US $ Private Placement 2013 |
(127.4) |
(120.0) |
|
Floating Rate Revolving Credit Facility 2012 (multi-currency) |
(210.2) |
(67.2) |
|
EIB Sterling R. & D. Loan 2010 |
(70.0) |
(70.0) |
|
Bank and other loans |
(14.7) |
(11.7) |
(720.7) |
(567.1) |
|
|
Borrowings |
(903.1) |
(779.2) |
|
Net debt |
(770.6) |
(589.9) |
Borrowings are accounted for at amortised cost and are categorised as other financial liabilities.
See note 21 for a maturity analysis of borrowings. The repayment dates on borrowings repayable after five years range from 2014 to 2022.
Interest of £22.5m (2007: £22.5m) was charged to the consolidated income statement in this period in respect of public bonds.
Secured loans
Loans amounting to £13.2m (2007: £11.5m) were secured by charges on freehold properties with a book value of £11.0m (2007: £9.8m).