Financial Position and Resources
Consolidated Balance Sheet
| 2008 £m |
2007 £m |
|
|---|---|---|
| Non-current assets | ||
| Intangible assets | 70,331 | 56,272 |
| Property, plant and equipment | 16,735 | 13,444 |
| Investments in associated undertakings | 22,545 | 20,227 |
| Other non-current assets | 8,935 | 6,861 |
| 118,546 | 96,804 | |
| Current assets | 8,724 | 12,813 |
| Total assets | 127,270 | 109,617 |
| Total equity shareholders funds | 78,043 | 67,067 |
| Total minority interests | (1,572) | 226 |
| Total equity | 76,471 | 67,293 |
| Liabilities | ||
| Borrowings | ||
| Long term | 22,662 | 17,798 |
| Short term | 4,532 | 4,817 |
| Taxation liabilities | ||
| Deferred tax liabilities | 5,109 | 4,626 |
| Current taxation liabilities | 5,123 | 5,088 |
| Other non-current liabilities | 1,055 | 954 |
| Other current liabilities(2) | 12,318 | 9,041 |
| 50,799 | 42,324 | |
| Total equity and liabilities | 127,270 | 109,617 |
Non-current assets
Intangible assets
At 31 March 2008, the Group’s intangible assets were £70.3 billion, with goodwill comprising the largest element at £51.3 billion (2007: £40.6 billion). The increase in intangible assets was primarily as a result of £7.9 billion of favourable exchange rate movements and £7.6 billion arising on the acquisitions of Vodafone Essar and Tele2, partially offset by amortisation of £2.5 billion. Refer to note 28 to the Consolidated Financial Statements for further information on the business acquisitions.
Property, plant and equipment
Property, plant and equipment increased from £13.4 billion at 31 March 2007 to £16.7 billion at 31 March 2008, predominantly as a result of £4.1 billion of additions, a £1.2 billion increase due to acquisitions during the year and £1.6 billion of favourable foreign exchange movements, which more than offset the £3.4 billion of depreciation charges and £0.1 billion reduction due to disposals.
Investments in associated undertakings
The Group’s investments in associated undertakings increased from £20.2 billion at 31 March 2007 to £22.5 billion at 31 March 2008, as a result of a £2.9 billion increase from the Group’s share of the results of its associates, after the deductions of interest, tax and minority interest, mainly arising from the Group’s investment in Verizon Wireless and favourable foreign exchange movements of £0.3 billion, partially offset by £0.9 billion of dividends received.
Other non-current assets
Other non-current assets mainly relates to other investments held by the Group, which totalled £7.4 billion at 31 March 2008 compared to £5.9 billion at 31 March 2007. The movement primarily represents an increase of £1.8 billion in the investment in China Mobile as a result of the increase in the listed share price, partially offset by the disposal of the Group’s 5.60% stake in Bharti Airtel.
Current assets
Current assets decreased to £8.7 billion at 31 March 2008 from £12.8 billion at 31 March 2007, mainly as a result of decreased cash holdings following the completion of the Vodafone Essar acquisition.
Total equity shareholders’ funds
Total equity shareholders’ funds increased from £67.1 billion at 31 March 2007 to £78.0 billion at 31 March 2008. The increase comprises primarily of the profit for the year of £6.8 billion less equity dividends of £3.7 billion, a £5.8 billion benefit from the impact of favourable exchange rate movements and the unrealised holding gains on other investments discussed above.
Borrowings
Long term borrowings and short term borrowings increased to £27.2 billion at 31 March 2008 from £22.6 billion at 31 March 2007, mainly as a result of foreign exchange movements and written put option liabilities assumed on the completion of the Vodafone Essar acquisition.
Taxation liabilities
The deferred tax liability increased from £4.6 billion at 31 March 2007 to £5.1 billion at 31 March 2008, which arose mainly from £0.5 billion in relation to the acquisition of Vodafone Essar.
Other current liabilities
The increase in other current liabilities from £9.0 billion to £12.3 billion is primarily to due foreign exchange differences arising on translation and other current liabilities in the newly acquired Vodafone Essar.
Contractual obligations
A summary of the Group’s principal contractual financial obligations is shown below. Further details on the items included can be found in the notes to the Consolidated Financial Statements.
| Payments due by period £m | |||||
|---|---|---|---|---|---|
| Contractual obligations(1) | Total | <1year | 1-3 years | 3-5 years | >5 years |
| Borrowings(2) | 34,537 | 5,492 | 10,150 | 4,728 | 14,167 |
| Operating lease commitments(3) | 4,441 | 837 | 1,081 | 771 | 1,752 |
| Capital commitments(3)(4) | 1,620 | 1,262 | 213 | 84 | 61 |
| Purchase commitments | 2,347 | 1,548 | 439 | 283 | 77 |
| Total contractual cash obligations (1) | 42,945 | 9,139 | 11,883 | 5,866 | 16,057 |
| Notes: | |
|---|---|
| (1) | The above table of contractual obligations excludes commitments in respect of options over interests in Group businesses held by minority shareholders (see Option agreements and similar arrangements) and obligations to pay dividends to minority shareholders (see “Dividends from associated undertakings and to minority shareholders”). The table excludes current and deferred tax liabilities and obligations under post employment benefit schemes, details of which are provided in notes 6 and 25 to the Consolidated Financial Statements, respectively. |
| (2) | See note 24 to the Consolidated Financial Statements. |
| (3) | See note 31 to the Consolidated Financial Statements. |
| (4) | Primarily related to network infrastructure. |
Contingencies
Details of the Group’s contingent liabilities are included in note 32 to the Consolidated Financial Statements.