Preliminary results for the year ended 31 January 2009
Notes to the consolidated financial information
For the financial year ended 31 January 2009
12. Net debt
Net debt comprises borrowings and financing derivatives (excluding accrued interest), less cash and cash equivalents and current other investments. Financing derivatives are those that relate to underlying items of a financing nature.
| £ millions | 2008/09 | 2007/08 |
|---|---|---|
| Cash and cash equivalents | 1,157 | 218 |
| Bank overdrafts | (163) | (23) |
| Cash and cash equivalents and bank overdrafts | 994 | 195 |
| Current other investments | - | 11 |
| Bank loans | (307) | (283) |
| Medium Term Notes and other fixed term debt | (1,757) | (1,436) |
| Financing derivatives | 135 | 23 |
| Finance leases | (69) | (69) |
| Net debt | (1,004) | (1,559) |
| £ millions | 2008/09 | 2007/08 |
|---|---|---|
| Net debt at beginning of year | (1,559) | (1,294) |
| Net increase/(decrease) in cash and cash equivalents and bank overdrafts | 743 | (56) |
| Disposal of current other investments | (12) | (21) |
| Net payment/(receipt) on forward foreign exchange contracts | 5 | (6) |
| Net payment/(receipt) of bank loans | 37 | (136) |
| Capital element of finance lease rental payments | 12 | 11 |
| Cash flow movement in net debt | 785 | (208) |
| Exchange differences and other non-cash movements | (230) | (57) |
| Net debt at end of year | (1,004) | (1,559) |
