Financial position and resources
Consolidated balance sheet
2009 £m |
2008 £m |
|
---|---|---|
Non-current assets | ||
Intangible assets | 74,938 | 70,331 |
Property, plant and equipment | 19,250 | 16,735 |
Investments in associated undertakings | 34,715 | 22,545 |
Other non-current assets | 10,767 | 8,935 |
139,670 | 118,546 | |
Current assets | 13,029 | 8,724 |
Total assets | 152,699 | 127,270 |
Total equity shareholders’ funds | 86,162 | 78,043 |
Total minority interests | (1,385) | (1,572) |
Total equity | 84,777 | 76,471 |
Liabilities | ||
Borrowings | ||
Long term | 31,749 | 22,662 |
Short term | 9,624 | 4,532 |
Taxation liabilities | ||
Deferred tax liabilities | 6,642 | 5,109 |
Current taxation liabilities | 4,552 | 5,123 |
Other non-current liabilities | 1,584 | 1,055 |
Other current liabilities | 13,771 | 12,318 |
Total liabilities | 67,922 | 50,799 |
Total equity and liabilities | 152,699 | 127,270 |
Non-current assets
Intangible assets
At 31 March 2009, the Group’s intangible assets were £74.9 billion, with goodwill comprising the largest element at £54.0 billion (2008: £51.3 billion). The increase in intangible assets was primarily as a result of £10.0 billion of favourable exchange rate movements and £2.3 billion of additions, partially offset by amortisation of £2.8 billion and an impairment charge of £5.9 billion. Refer to note 10 to the consolidated financial statements for further information on the impairment charge.
Property, plant and equipment
Property, plant and equipment increased from £16.7 billion at 31 March 2008 to £19.3 billion at 31 March 2009, predominantly as a result of £4.8 billion of additions and £2.1 billion of favourable foreign exchange movements, which more than offset the £4.1 billion of depreciation charges and a £0.3 billion reduction due to disposals.
Investments in associated undertakings
The Group’s investments in associated undertakings increased from £22.5 billion at 31 March 2008 to £34.7 billion at 31 March 2009, mainly as a result of favourable foreign exchange movements of £8.7 billion. The Group’s share of the results of its associated undertakings, after deductions of interest, tax and minority interest, contributed a further £4.1 billion to the increase, mainly arising from the Group’s investment in Verizon Wireless, and was partially offset by £0.8 billion of dividends received.
Other non-current assets
Other non-current assets mainly relate to other investments held by the Group, which totalled £7.1 billion at 31 March 2009 compared to £7.4 billion at 31 March 2008, primarily as a result of a decrease in the listed share price of China Mobile, which was largely offset by foreign exchange rate movements. The movement in other non-current assets primarily represents a £1.6 billion increase in the revaluation of financial instruments.
Current assets
Current assets increased to £13.0 billion at 31 March 2009 from £8.7 billion at 31 March 2008, mainly as a result of the increased holdings due to funding requirements in relation to the completion of the Vodacom transaction and in anticipation of bond redemptions occurring in May 2009.
Total equity shareholders’ funds
Total equity shareholders’ funds increased from £78.0 billion at 31 March 2008 to £86.2 billion at 31 March 2009. The increase comprises primarily the profit for the year of £3.1 billion and a £12.6 billion benefit from the impact of favourable exchange rate movements less equity dividends of £4.0 billion.
Borrowings
Long term borrowings and short term borrowings increased to £41.4 billion at 31 March 2009 from £27.2 billion at 31 March 2008, mainly as a result of foreign exchange movements and new bond issues.
Taxation liabilities
The deferred tax liability increased from £5.1 billion at 31 March 2008 to £6.6 billion at 31 March 2009, which arose mainly from the impact of foreign exchange movements.
Other current liabilities
The increase in other current liabilities from £12.3 billion at 31 March 2008 to £13.8 billion at 31 March 2009 was primarily to due foreign exchange differences arising on translation of liabilities in foreign subsidiaries and joint ventures. Group trade payables at 31 March 2009 were equivalent to 38 days (2008: 37 days) outstanding, calculated by reference to the amount owed to suppliers as a proportion of the amounts invoiced by suppliers during the year.
Contractual obligations and contingencies
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. Details of the Group’s contingent liabilities are included in note 33 to the consolidated financial statements.
Payments due by period £m | |||||
---|---|---|---|---|---|
Contractual obligations(1) |
Total | <1 year | 1-3 years |
3-5 years |
>5 years |
Borrowings(2) | 49,130 | 10,809 | 12,509 | 7,594 | 18,218 |
Operating lease commitments(3) | 5,616 | 1,041 | 1,451 | 989 | 2,135 |
Capital commitments(3)(4) | 2,107 | 1,874 | 153 | 69 | 11 |
Purchase commitments | 2,518 | 1,616 | 524 | 283 | 95 |
Total contractual cash obligations(1) | 59,371 | 15,340 | 14,637 | 8,935 | 20,459 |
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 26 to the consolidated financial statements, respectively.
- (2)
- See note 25 to the consolidated financial statements.
- (3)
- See note 32 to the consolidated financial statements.
- (4)
- Primarily related to network infrastructure.