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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.