Capital resources

During the period under review we have increased the level of net debt to £9.5 billion at 31 March 2008 compared with £7.9 billion at 31 March 2007 and £7.5 billion at 31 March 2006 (based on our 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 we 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 2008.
     The following table sets out our contractual obligations and commitments as they fall due for payment, as at 31 March 2008.

     
     
     
  Payments due by period  
 
 
      Less           More  
      than 1   1-3   3-5   than 5  
Contractual obligations Total   year   years   years   years  
and commitments £m   £m   £m   £m   £m  
Loans and other borrowingsa  11,019   1,505   2,599   1,527   5,388  
Finance lease obligations 320   19   42   21   238  
Operating lease obligations 8,742   469   885   796   6,592  
Pension deficiency obligations 1,960   –   840   840   280  
Capital commitments 740   586   119   20   15  
 
Total 22,781   2,579   4,485   3,204   12,513  
 
a Excludes fair value adjustments for hedged risks.                    

At 31 March 2008, we had cash, cash equivalents and current asset investments of £1,875 million. At that date, £1,260 million of debt principal (at hedged rates) fell due for repayment in 2009. We had unused short-term bank facilities, amounting to £2,335 million at 31 March 2008. These resources will allow us to settle our obligations as they fall due.

 

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