NOTES TO THE FINANCIAL STATEMENTS

Group Company


14. Debtors 1996
m
1995
m
1996
m
1995
m


Trade debtors 1,548 1,171 1,349 1,045
Amounts owed by subsidiary undertakings - - 414 536
Amounts owed by associated undertakings 29 17 - 4
Other debtors 217 236 118 147
Advance corporation tax recoverable (a) - - - 55
Accrued income 1,135 1,141 1,095 1,109
Prepayments 153 155 122 135



Total debtors 3,082 2,720 3,098 3,031



Total debtors included amounts receivable after more than one year:
Amounts owed by subsidiary undertakings - - 32 147
Advance corporation tax recoverable (a) - - - 55
Accrued income 65 51 65 51
Prepayments 22 34 22 34



Total 87 85 119 287




(a) Advance corporation tax recoverable
Advance corporation tax on proposed final dividend 179 168 179 168
Amount offset against deferred tax provision (note 18) (179) (168) (179) (113)



Balance included within debtors - - - 55





Group Company


15. Current asset investments 1996
m
1995
m
1996
m
1995
m


Listed investments 179 360 65 98
Other short-term deposits and investments 2,389 900 1,918 422



Total current asset investments 2,568 1,260 1,983 520



Market value of listed investments 179 372 65 106



Average
effective
interest
rates (a)
%
Group Company


16. Loans and other borrowings 1996
m
1995
m
1996
m
1995
m



US dollar 7 5/8 % guaranteed bonds 1996 6.4 164 154 - -
US dollar 6 1/2 % guaranteed notes 1997 7.7 246 230 - -
US dollar 9 3/8 % guaranteed bonds 1998 6.5 164 154 - -
US dollar 8 3/4 % guaranteed bonds 1999 8.8 131 123 - -
US dollar 9 3/8 % guaranteed notes 1999 9.6 196 184 - -
Zero coupon bonds 2000
(less unamortised discount 71m (1995 - 85m)) 6.5 129 115 129 115
12 1/4 % bonds 2003 12.3 180 180 180 180
7 1/8 % bonds 2003
(less unamortised discount 5m (1995 - 5m)) 7.3 495 495 495 495
12 1/4 % bonds 2006 12.3 229 229 229 229
US dollar 9 5/8 % guaranteed debentures 2019 9.8 130 122 - -
8 5/8 % bonds 2020 (less unamortised discount 5m (1995 - 5m)) 8.8 295 295 295 295




Total listed bonds, debentures and notes 2,359 2,281 1,328 1,314
Bonds held by HM Government
(less unamortised increase in face value 42m
(1995 - 52m)) (b)
11.9 496 616 496 616
Lease finance 4 7 3 6
Bank loans due 1999-2009 9.2 765 590 - -
Bank overdrafts and other short-term borrowings 6.4 13 42 144 176
Commercial paper 6.0 - 15 - 15
Loans from subsidiary undertakings - - 2,512 1,959




Total loans and other borrowings 3,637 3,551 4,483 4,086




Apart from the lease finance, all borrowings are unsecured. Lease finance is repayable by instalments.

GroupCompany


1996
m
1995
m
1996
m
1995
m


Repayments fall due as follows:
Within one year, or on demand 315 190 607 710

Between one and two years
248 288
359 231
410 338
165 388
2,140 2,116
241 301
342 241
410 330
742 388
2,141 2,116
Between two and three years
Between three and four years
Between four and five years
After five years
Total due for repayment after more than one year 3,322 3,361 3,876 3,376



Total loans and other borrowings 3,637 3,551 4,483 4,086



(a) The average effective interest rates in the table above take into account the effect of interest rate swaps.

(b) The bonds held by HM Government were formerly a series of unsecured loan stock which was issued to the Secretary of State in 1984, each series of which was modified in 1992 to form a corresponding series of bonds, repayable at par. In July 1994, the six series maturing on or after 31 March 1997 then outstanding, with original face values of 960m, were converted into series of bonds with new face values of 1,078m and lower interest rates attaching to them. In August 1994, three bonds in the series with a total new face value of 540m were repurchased by the company from HM Government and cancelled. The premium of 75m to the original face values paid on the repurchase was charged against the profit for the year ended 31 March 1995 (note 4). The increase in the face value of 58m on the three series of bonds that were converted but not repurchased is being amortised over the lives of those bonds; at 31 March 1996, 42m (1995 52m) remained to be amortised.

The repayment dates, unamortised increase in face value, and the current and former interest rates attaching to the bonds held by HM Government at 31 March 1996 are as follows:


Current
interest rate
%
Former
interest rate
%
Repayment
date
31 March
Unamortised increase
in face value
m
Balance sheet
carrying value
m





8 1/4 12 1/2 1997 4 136
9 1/8 12 1/4 2001 14 165
9 1/8 12 1/4 2004 24 195


Total bonds held by HM Government 496


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