Skip to content

Chief Financial Officer’s report

Liquidity

In addition to our cash, cash equivalents and other current interest-bearing deposits, we had undrawn long-term committed aircraft financing facilities totalling $3,248 million, further committed general facilities of $269 million and ¥68 billion, undrawn uncommitted overdraft lines totalling £20 million and €4 million, and undrawn, uncommitted money market lines of £25 million.

Net debt/total capital ratio

Net debt at March 31, 2009, amounted to £2,382 million, an increase of £1,072 million compared with March 31, 2008. This is net of cash, cash equivalents and other current interest-bearing deposits totalling £1,381 million. The year on year increase in net debt included £554 million due to the retranslation of foreign debt.

As a result of this increase in net debt, our net debt/total capital ratio at March 31, 2009, was 56.3 per cent, 27.6 points higher than the previous year. Including operating leases, our net debt/total capital ratio was 63.7 per cent, an increase of 25.4 points on last year.

Financial risk management

We are exposed to a variety of financial risks, including market risk, credit risk, capital risk and liquidity risk. Our overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on our financial performance. This is covered in more detail in note 31 to the financial statements.

Going concern

Our business activities, performance, strategy and risks are set out in this report. The financial position of the Group, including cash flows, liquidity position and available committed facilities are discussed in this section, and further information is provided in notes 25 to 32 of the financial statements.

After making enquiries, our directors have a reasonable expectation that our Company has adequate resources to continue operating for the foreseeable future. For this reason, the going concern basis has been adopted in preparing the accounts.

Keith Williams, Chief Financial Officer

Capital expenditure of

£712m

down £22m on last year.

back to top