Net Debt

31 March
2004
£m		  
 
 		  
 
Footnote		  
2004
£m		  
2003
£m
4,866.8 Net debt   4,936.4 4,344.5
  Secured on the assets of the Group      
97.8 6.5055% Secured Notes 2038 1.1 97.8 97.7
59.2 5.920% Secured Notes 2035 1.2 59.2 59.2
19.7 7.743% Secured Notes 2025 1.3 19.7 19.7
1.9 5.66% 135 Bishopsgate Securitisation 2018 1.4 1.9 1.9
7.1 8.49% 135 Bishopsgate Securitisation 2018 1.4 7.1 7.1
246.7 8 7/8% First Mortgage Debenture Bonds 2035   246.7 246.7
197.3 9 3/8% First Mortgage Debenture Stock 2028   197.3 197.2
12.6 10 1/2% First Mortgage Debenture Stock 2019/24   12.6 12.6
20.4 11 3/8% First Mortgage Debenture Stock 2019/24   20.4 20.4
206.0 6 3/4%First Mortgage Debenture Bonds 2020 1.5 205.9  
103.5 6 3/4% First Mortgage Debenture Bonds 2011 1.5 103.2  
45.0 Bank loan 1.6 44.9  
1,017.2     1,016.7 662.5
  Unsecured      
573.4 Class A1 5.260% Unsecured Notes 2035 1.2 573.5 573.5
99.1 Class B 5.793% Unsecured Notes 2035 1.2 99.1 99.1
83.8 Class C Fixed Rate Unsecured Notes 2035 1.2 84.3 83.9
73.4 Class C2 6.4515% Unsecured Notes 2032 1.1 73.5 73.4
220.2 Class B 6.0875% Unsecured Notes 2031 1.1 220.3 220.1
146.8 Class A3 5.7125% Unsecured Notes 2031 1.1 146.8 146.7
283.4 Class A2 5.67% Unsecured Notes 2029 1.1 281.1 285.6
212.3 Class A2 (C) 6.457% Unsecured Notes 2025 1.3 212.3 157.1
205.8 Class B2 6.998% Unsecured Notes 2025 1.3 205.8 205.7
20.5 Class B3 7.243% Unsecured Notes 2025 1.3 20.5 20.5
319.1 Class A1 Fixed Rate Unsecured Notes 2024 1.1 321.5 318.9
22.3 5.66% 135 Bishopsgate Securitisation 2018 1.4 21.7 22.8
88.4 8.49% 135 Bishopsgate Securitisation 2018 1.4 86.7 90.0
84.3 Class A1 6.389% Unsecured Notes 2016 1.3 82.2 59.5
85.9 Class B1 7.017% Unsecured Notes 2016 1.3 82.9 88.8
147.4 Class C1 6.7446% Unsecured Notes 2014 1.1 140.3 154.5
44.6 Class A2 5.555% Unsecured Notes 2013 1.2 42.2 47.0
2,710.7     2,694.7 2,647.1
97.4 6.30% Senior US Dollar Notes 2015 2 97.4  
1.7 10 1/4% Bonds 2012   1.7 1.7
97.8 7.35% Senior US Dollar Notes 2007 2 97.8 97.8
0.7 Guaranteed Floating Rate Unsecured Loan Notes 2005   0.5 0.7
966.0 Bank loans and overdrafts   1,155.9 907.6
3,874.3     4,048.0 3,654.9
  Convertible Bonds      
149.0 6% Subordinated Irredeemable Convertible Bonds 3   146.9
5,040.5 Gross debt   5,064.7 4,464.3
(173.7) Cash and deposits 4 (128.3) (119.8)

  1. These borrowings are obligations of ringfenced, special purpose companies, with no recourse to other companies or assets in the Group.

    1,288.1 1.1 Broadgate (Funding) PLC 1,281.3 1,296.9
    860.1 1.2 MSC (Funding) PLC 858.3 862.7
    628.5 1.3 BLSSP(Funding) PLC 623.4 551.3
    119.7 1.4 135 Bishopsgate Financing Ltd 117.4 121.8
    309.5 1.5 BLUniversal PLC 309.1  
    45.0 1.6 BLU Nybil Ltd 44.9  
  2. These borrowings have been hedged into Sterling from the date of issue.
  3. All the outstanding 6% Subordinated Irredeemable Convertible Bonds were converted into ordinary shares on or before 30 July 2004.
  4. Cash and deposits not subject to a security interest amount to £42.3 million (31 March 2004: £82.5 million; 30 September 2003: £29.4 million).

Maturity analysis of net debt

31 March
2004
£m		  
 
 		  
 
 		  
2004
£m		  
2003
£m
4,866.8 Net debt   4,936.4 4,344.5
485.2 Repayable: within one year and on demand 152.8 220.8
345.1 between: one and two years 382.3 480.2
488.6   two and five years 1,032.9 526.1
572.6   five and ten years 539.1 404.2
556.6   ten and fifteen years 558.6 442.9
710.5   fifteen and twenty years 753.1 484.7
791.2   twenty and twenty five years 756.1 780.7
635.0   twenty five and thirty years 583.1 671.1
306.7   thirty and thirty five years 306.7 306.7
149.0 Irredeemable     146.9
5,040.5 Gross debt   5,064.7 4,464.3
(96.2) Cash   (61.7) (33.1)
(77.5) Term deposits   (66.6) (86.7)
(173.7) Cash and deposits   (128.3) (119.8)

Maturity of committed undrawn borrowing facilities

31 March
2004
£m		  
 
 		  
 
 		  
2004
£m		  
2003
£m
964.9 Total   1,035.8 751.7
45.0 Expiring: within one year 32.3 56.7
150.0 between: one and two years 20.4 20.0
165.0   two and three years 25.0 170.0
    three and four years 286.0 150.0
604.9   four and five years 672.1 355.0

Balance Sheet adjustments

In accordance with Financial Reporting Standard 4 'Capital Instruments', debt issue costs, less premiums received, have been deducted from the principal amount of debt in arriving at Balance Sheet values, as detailed below:

31 March
2004
£m		  
 
 		  
2004
£m		  
2003
£m
49.1   44.1 54.4
37.8 Securitised debt 34.0 45.2
9.8 Debentures 9.6 6.1
0.5 US Dollar Notes 0.5  
1.0 Convertible Bonds   3.1

In accordance with Financial Reporting Standard 7 'Fair Values in Acquisition Accounting', on a corporate acquisition, debt is recorded in the Balance Sheet at fair value. At 30 September 2004, the balance of the fair value adjustment arising on the Group's acquisition of the remaining 50% interest in BL Universal PLC was £12.7 million (31 March 2004: £13.3 million; 30 September 2003: £nil). This has the effect of increasing the carrying value of the Group's secured debt in the Balance Sheet.

Interest rate profile - including effect of derivatives

31 March
2004
£m		  
 
 		  
2004
£m		  
2003
£m
4,866.8 Net debt 4,936.4 4,344.5
3,985.7 Fixed rate 4,043.9 3,497.3
100.0 Capped rate 100.0 100.0
781.1 Variable rate (net of cash) 792.5 747.2

Comparison of market values and book values at 30 September 2004

 
 
 		 Market
Value
£m		 Book
Value
£m		  
Difference
£m
Total 5,363.9 4,936.4 427.5
Fixed rate debt:      
Securitised debt 3,073.5 2,880.4 193.1
Debentures and unsecured bonds 1,177.2 983.0 194.2
Bank and other floating rate debt 1,201.3 1,201.3  
Cash and deposits (128.3) (128.3)  
  5,323.7 4,936.4 387.3
Derivatives:      
unrecognised gains (8.7)   (8.7)
unrecognised losses 48.9   48.9
  40.2   40.2

The differences are shown before any tax relief.