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Note 19: Investments

a  Group

Investment in associates

  Group
£ million 2010 2009
Balance at 1 April 209 227
Exchange movements (14) 27
Share of attributable results (32) 4
Share of movements on other reserves 34 (32)
Dividends received   (17)
At 31 March 197 209

Market value of listed associates

  Group
£ million 2010 2009
At 31 March 287 184

Details of the investments that the Group accounts for as associates using the equity method are set out below:

  Percentage of equity owned Principal activities Holding Country of incorporation and principal operations
Iberia Lineas Aéreas de España S.A. (‘Iberia’)* 13.15 Airline operations Ordinary shares Spain

*Held by a subsidiary company.

The Group accounts for its investment in Iberia as an associate although the Group holds less than 20 per cent of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the Group’s voting power (both through its equity holding and its representation on key decision-making committees) and the nature of its commercial relationships with Iberia.

The following summarised financial information of the Group’s investment in associates is shown based on the Group’s share of results and net assets:

  Group
£ million 2010 2009
Non-current assets 276 300
Current assets 315 392
Current liabilities (207) (284)
Non-current liabilities (203) (216)
Share of net assets 181 192
Goodwill attributable to investments in associates* 16 17
Revenues 528 574
Net (loss)/profit after tax (32) 4

*Goodwill has reduced by £1 million (2009: £nil) as a result of foreign currency exchange movements.

b  Company

A summary of the Company’s investments is set out below:

Company
£ million Cost Provisions Total
2010
Total
2009
Balance at 1 April 3,386 (1,030) 2,356 2,207
Exchange movements (8) (8) 23
Additions 9 9 144
Provision   11 11 (18)
At 31 March 3,387 (1,019) 2,368 2,356

The Company accounts for its investments in subsidiaries and associates using the cost method.

The Group’s and Company’s principal investments in subsidiaries, associates and other investments are listed in principal investments.

During the year, the Company invested £9 million (2009: £40 million) in the subsidiary BA European Limited in order to fund the contingent purchase consideration of french airline, L’Avion. In the prior year, the Company invested £104 million in the subsidiary CityFlyer in order to fund operations.

The £11 million reversal of impairment provision relates to the write-up of the Company’s investment in The Plimsoll Line Limited (2009: impairment of £13 million) which holds the Group’s investment in Flybe (note 20). The prior year provisions of £18 million also includes a £5 million impairment of the Company’s investment in OpenSkies, associated with the goodwill resulting from the acquisition of L’Avion.

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