Debt Investors

We recognise that debt investors are key stakeholders in our business and are committed to keeping all investors informed of developments affecting the Group.

In this section you will find details about our financial policy and credit ratings, outstanding bonds, liquidity management and bank facilities.

Net debt at 31 July 2022

Borrowings 1,206
Less liquid cash resources (1,056)
Net debt 150
Long term
credit rating
BBB+ (stable)/ Baa2 (stable)
Net debt/
Headline EBITDA
0.3 times

Treasury and financing policy

Group Treasury operates as a centralised service managing debt financing, liquidity, interest rate and foreign exchange risks. The Board reviews and mandates policies for financial risk management.

The funding policy of the Group is to maintain a broad portfolio of rated public debt, diversified by source and maturity and to maintain committed bank facilities sufficient to ensure that at all times £200m of undrawn committed facilities are available.

Our balance sheet can be affected by currency translation movements. Our policy is to match foreign currency assets and cash-flows with foreign currency debt to provide a natural hedge for a significant part of the translation exposure.

The amount of risk to any one counterparty is restricted according to credit rating. We continually monitor our exposure to counterparties and their credit ratings.

Exposures to interest rate fluctuations on borrowings are managed by using interest rate financial instruments. It is our policy to keep 40-60% of gross debt at fixed rates of interest over the medium-term.

Key financial policy metrics

Key financial policy metrics
  Financial policy Actual (31.7.22) Actual (31.7.21)
Net debt / Headline EBITDA < 2x 0.3x 1.6x
Undrawn committed facilities > £200m £657m £575m
Fixed rate as % of gross debt 40-60% 50% 54%
Public debt as % of gross debt > 50% 100% 100%
Average debt maturity profile > 3 years 2.7 years 3.2 years

Committed bank facilities

The main committed bank facility available to the Group is a US$800m committed bank facility which expires in November 2024. At 31 July 2022 it was undrawn.

Additionally, the company has other bank facilities available to it for working capital, cash management and bonding purposes.

Outstanding Bonds

The Group's strategy is to finance its balance sheet primarily from the rated long-term public US, UK and European capital markets to maintain a diversified investor profile and a balanced long-term maturity profile and pro-actively refinance maturities as they fall due.

Debt instruments at 31 July 2022

  £ millions
€600m 1.25% eurobonds 2023 502
€650m 2.0% eurobonds 2027 538
Debt instruments 1,040
Lease liabilities 119
Interest accrual 6
Other indebtedness 41
Gross debt 1,206
Treasury contacts
4th Floor, 11-12 St James’s Square
London, SW1Y 4LB, UK
T: +44 (0) 207 004 1625 M: +44 (0) 7917 214 976 Email