BTPLC Annual Report 2006 - Financial Review

During the period under review the group has reduced its level of borrowings so that its net debt was £7.5 billion at 31 March 2006 compared with £7.9 billion at 31 March 2005 (based on BT’s definition of net debt as set out in note 10).
     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 2006.
     The following table sets out the group’s contractual obligations and commitments as they fall due for payment, as at 31 March 2006.


	Payments due by period

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		9,078	1,622	1,225	2,814	3,417
Finance lease obligations		845	318	294	22	211
Operating lease obligations		9,782	474	888	843	7,577
Capital commitments		754	684	70	–	–

Total		20,459	3,098	2,477	3,679	11,205

At 31 March 2006, the group had cash, cash equivalents and current asset investments of £2,330 million. At that date, £1,750 million of debt fell due for repayment in the 2007 financial year. The group had unused short-term bank facilities, amounting to approximately £1,535 million at 31 March 2006. These resources will allow the group to settle its obligations as they fall due.

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