BTPLC Annual Report 2005 - Financial review

During the period under review the group has reduced its level of borrowings so that its net debt was £7.8 billion at 31 March 2005 compared with £8.4 billion at 31 March 2004 and £9.6 billion at 31 March 2003. This is at a level with which we are comfortable and we are no longer targeting net debt of around £7 billion in the 2007 financial year.
     The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and therefore they continue to adopt the going concern basis in preparing the financial statements.
     There has been no significant change in the financial or trading position of the group since 31 March 2005.
     The following table sets out the group’s contractual obligations and commitments as they fall due for payment, as at 31 March 2005.



Contractual obligations and commitments	Total £m	Less than 1 year £m	1-3 years £m	3-5 years £m	More than 5 years £m

Loans and other borrowings	11,596	4,197	1,071	352	5,976
Finance lease obligations	993	301	566	21	105
Operating lease obligations	10,457	375	752	743	8,587
Capital commitments	735	532	105	44	54

Total	23,781	5,405	2,494	1,160	14,722

At 31 March 2005, the group had cash and short-term investments of £4,803 million. At that date, £4,498 million of debt fell due for repayment in the 2006 financial year. The group had unused short-term bank facilities, amounting to approximately £145 million at 31 March 2005. These resources will allow the group to settle its obligations as they fall due.
At 31 March 2004, the group had cash and short-term investments of £5,272 million and unused short-term bank facilities amounting to approximately £145 million.

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