Notes 6-10
- 6. Finance income and finance costs
- 7. Taxation
- 8. Ordinary dividends
- 9. Earnings per share
- 10. Sources of finance
6. Finance income and finance costs
Finance income includes:
| 2007 £m |
2006 £m |
2005 £m |
|
|---|---|---|---|
| Expected return on pension scheme assets | 28.1 | 25.2 | 24.2 |
| Income from available for sale investments | 9.2 | 5.7 | 5.6 |
| Interest income | 102.1 | 80.1 | 57.8 |
| 139.4 | 111.0 | 87.6 |
Finance costs include:
| 2007 £m |
2006 £m |
2005 £m |
|
|---|---|---|---|
| Interest on pension scheme liabilities | 33.8 | 32.4 | 32.0 |
| Interest payable and similar charges1 | 216.3 | 171.3 | 141.4 |
| Finance charges (excluding revaluation of financial instruments) |
250.1 | 203.7 | 173.4 |
| Revaluation of financial instruments accounted at fair value through profit or loss |
16.0 | 8.0 | 8.9 |
| 266.1 | 211.7 | 182.3 |
The following are included in the revaluation of financial instruments accounted at fair value through profit and loss shown above:
| 2007 £m |
2006 £m |
2005 £m |
|
|---|---|---|---|
| Movements in fair value of treasury instruments | 6.7 | 3.3 | 3.0 |
| Revaluation of put options over minority interests (notes 20 and 21) |
9.3 | 4.7 | 5.8 |
| Other | – | – | 0.1 |
| 16.0 | 8.0 | 8.9 |
Note
1 Interest payable and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost.
Interest payable on the Group's drawings on its committed revolving credit facilities is payable at a margin of 0.25% over relevant LIBOR.
The majority of the Group's long-term debt is represented by $750 million of US dollar bonds at a weighted average interest rate of 6.01% (prior to any interest rate swaps or cross-currency swaps), 11,750 million of Eurobonds at 5.23% (prior to any interest rate or currency swaps), £600 million of sterling bonds at 6.13% and $150 million of convertible bonds at 5.0%.
Average borrowings under the Syndicated Revolving Credit Facilities (note 10) amounted to $377 million at an average interest rate of 5.95% inclusive of margin. Average borrowings under the US$ Commercial Paper Program (note 10) amounted to $476 million at an average interest rate of 5.40% inclusive of margin.