|
During the 2004 and 2003 financial
years the group has reduced its level of borrowings so that its net debt was
£8.4 billion at 31 March 2004 compared with £9.6 billion at 31 March 2003 and
£13.7 billion at 31 March 2002. The debt reduction in the 2003 financial year
was principally achieved by the disposal of our stake in Cegetel.
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 2004.
The following table sets out the
group’s contractual obligations and commitments as they fall due for payment,
as at 31 March 2004.
| |
Payments due
by period |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Less |
|
|
|
|
|
More |
|
| |
|
|
than 1 |
|
1-3 |
|
3-5 |
|
than 5 |
|
| |
Total |
|
year |
|
years |
|
years |
|
years |
|
|
Contractual obligations
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans and other borrowings |
12,598 |
|
989 |
|
4,582 |
|
693 |
|
6,334 |
|
| Finance lease obligations |
1,099 |
|
282 |
|
556 |
|
261 |
|
– |
|
| Operating lease obligations |
10,914 |
|
367 |
|
723 |
|
736 |
|
9,088 |
|
| Capital commitments |
879 |
|
640 |
|
113 |
|
50 |
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
25,490 |
|
2,278 |
|
5,974 |
|
1,740
|
|
15,498 |
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2004, the group had cash
and short-term investments of £5,272 million. At that date, £1,271 million of
debt fell due for repayment in the 2005 financial year. The group had unused
short-term bank facilities, amounting to approximately £145 million at 31 March
2004. These resources will allow the group to settle its obligations as they
fall due.
At 31 March 2003, the group had cash
and short-term investments of £6,431 million. The group had unused short-term
bank facilities, amounting to approximately £575 million at 31 March 2003.
|
