< Previous

Next >

4 Financial liabilities - borrowings

4 Financial liabilities - borrowings

All figures in £ millions	2005	2004	2003
Non-current
6.125% Euro Bonds 2007 (nominal amount €591m)	436	390	343
10.5% Sterling Bonds 2008 (nominal amount £100m)	107	100	100
7% Global Dollar Bonds 2011 (nominal amount $500m)	307	260	278
7% Sterling Bonds 2014 (nominal amount £250m)	250	226	235
4.625% US Dollar notes 2018 (nominal amount $300m)	161	156	167
Total	1,261	1,132	1,123
Current
Due within one year or on demand:
Bank loans and overdrafts	366	433	565
4.625% Euro Bonds 2004	-	-	348
Total	366	433	913
Total borrowings	1,627	1,565	2,036

The 2004 and 2003 figures for the 2007 Euro Bonds and 2014 Sterling Bonds (together with the 2004 Euro Bond which has now been redeemed) include the effect of accounting for the foreign exchange element of the related derivatives.

As at 31 December 2005 the exposure of the borrowings of the Company to interest rate changes when the borrowings re-price is as follows:

Maturity of non-current borrowings:

All figures in £ millions		2005	2004	2003
Between one and two years		436	-	-
Between two and five years		107	490	443
Over five years		718	642	680
Total		1,261	1,132	1,123
All figures in £ millions	Total	One year	One to five years	More than five years
Carrying value of borrowings	1,627	366	543	718
Effect of interest rate swaps	-	1,160	(471)	(689)
Total	1,627	1,526	72	29

The carrying amounts and fair values of non-current borrowings are as follows:

All figures in £ millions	Effective interest rate	Carrying amount 2005	Fair value 2005	Carrying amount 2004	Fair value 2004	Carrying amount 2003	Fair value 2003
6.125% Euro Bonds 2007	6.18%	436	419	390	409	343	448
10.5% Sterling Bonds 2008	10.53%	107	113	100	116	100	120
7% Global Dollar Bonds 2011	7.16%	307	310	260	293	278	317
7% Sterling Bonds 2014	7.20%	250	282	226	255	235	275
4.625% US Dollar notes 2018	4.69%	161	155	156	142	167	151
Total		1,261	1,279	1,132	1,215	1,123	1,311

The fair values are based on clean market prices at the year end or, where these are not available, on the quoted market prices of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments. The carrying amounts of current borrowings approximate their fair value.

The carrying amounts of the Company's borrowings are denominated in the following currencies:

All figures in £ millions	2005	2004	2003
US dollar	834	761	1,083
Sterling	357	510	649
Euro	436	294	304
Total	1,627	1,565	2,036

back to top