Notes to the financial statements

25 BORROWINGS

Group and Company	2008 £m	2007 £m
Non-current borrowings
Finance lease liabilities	0.1	0.1
Non–current borrowings	0.1	0.1
Current
Unsecured bank and other loans	20.1	24.2
Finance lease liabilities	0.2	0.7
Current borrowings	20.3	24.9
Total borrowings	20.4	25.0

Maturity of borrowings is as follows:

Group and Company	2008 £m	2007 £m
Within one year	20.3	24.9
Between one and two years	0.1	0.1
	20.4	25.0

The fair values of non–current borrowings are not materially different from the carrying values stated above.

The Group’s borrowings are all denominated in sterling.

Unsecured bank and other loans

Group and Company	2008 £m	2007 £m
Syndicated bank debt – revolving credit facility	18.4	22.2
Capitalised loan arrangement fees	(0.3)	–
Non-bank debt	2.0	2.0
	20.1	24.2

Syndicated debt
At 31 March 2008 the Company had a £42.0 million loan facility agreement with Lloyds TSB Bank plc and Bank of Scotland plc. A £5.0 million bonding facility is also provided by the same banks. The facility is denominated in sterling and bears interest at LIBOR plus 1.5%. The agreement contains financial covenants in relation to the ratio of net borrowings to PBITDA and the ratio of PBITDA to net interest payable.

This new facility agreement, entered into in November 2007 for a period of three years, replaced the existing £42.0 million multi–currency revolving credit facility agreement with Lloyds TSB Bank plc and the Governor and Company of the Bank of Scotland. The facility in place as at 31 March 2007 bore interest at LIBOR plus 2%.

At 31 March the following amounts were outstanding under the facility and were included within current borrowings:

	2008			2007
	Available	Utilised	Unutilised	Available	Utilised	Unutilised
Group and Company	£m	£m	£m	£m	£m	£m
Bank debt
Allocated to the Company	42.0	18.4	23.6	42.0	22.2	19.8
Total bank debt	42.0	18.4	23.6	42.0	22.2	19.8

Non–bank debt
Non–bank debt is a cash advance from the Company’s available for sale investment. This is repayable on demand and bears no interest.

Obligations under finance leases – gross

	Minimum lease
	payments
	2008 £m	2007 £m
Amounts payable under finance leases:
Within one year	0.2	0.8
In the second to fifth years inclusive	0.1	0.1
	0.3	0.9
Less: future finance charges	–	(0.1)
Present value of lease obligations	0.3	0.8

Obligations under finance leases – present value

	Present value
	of minimum
	lease payments
	2008 £m	2007 £m
Amounts payable under finance leases:
Within one year	0.2	0.7
In the second to fifth years inclusive	0.1	0.1
	0.3	0.8
Less: amount due for settlement within 12 months (shown under current borrowings)	(0.2)	(0.7)
Amount due for settlement after 12 months	0.1	0.1

It is the Group’s policy to lease certain of its fixtures and equipment under finance leases. The average lease term is three years. Interest rates are fixed at the contract date. Leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The fair value of the Group’s lease obligations approximates to their carrying amount.

The Group’s obligations under finance leases are secured by the lessors’ rights over the leased assets.

Currency and interest rate analysis
The Group’s borrowings are denominated in sterling. The interest rate analysis of the Group’s borrowings is as follows:

					Fixed
		Interest	Floating	Fixed	interest	Time
	Total	free	rate	rate	rate	fixed
	£m	£m	£m	£m	%	Years
At 31 March 2008	20.4	2.0	18.1	0.3	4% to 7%	0-3 years
At 31 March 2007	25.0	2.0	22.2	0.8	4% to 7%	1-3 years

Exposures to variable interest rates on £10.0 million (2007: £5.0 million) of floating rate borrowings are hedged through use of interest rate swaps. See note 26.

The movement in the Group’s total net debt is as follows:

	Group
	1 April	Debt	Debt	31 March
	2007	decrease	increase	2008
	£m	£m	£m	£m
Cash in hand and at bank	3.6	–	(2.6)	1.0
Current borrowings	(24.9)	24.6	(20.0)	(20.3)
Non–current borrowings	(0.1)	–	–	(0.1)
	(21.4)	24.6	(22.6)	(19.4)

	Group
	1 April	Debt	Debt	31 March
	2007	decrease	increase	2008
	£m	£m	£m	£m
Cash in hand and at bank	8.4	–	(4.8)	3.6
Current borrowings	(36.8)	71.9	(60.0)	(24.9
Non–current borrowings	(0.9)	0.8	–	(0.1)
	(29.3)	72.7	(64.8)	(21.4)