Notes 6-10

6. Finance income and finance costs

Finance income includes:


2008
£m
2007
£m
2006
£m
Expected return on pension scheme assets (note 23) 31.3 28.1 25.2
Income from available for sale investments 9.7 9.2 5.7
Interest income 128.6 102.1 80.1
  169.6 139.4 111.0

Finance costs include:


2008
£m
2007
£m
2006
£m
Interest on pension scheme liabilities (note 23) 38.9 33.8 32.4
Interest on other long-term employee benefits 1.6 1.5 0.4
Interest payable and similar charges1 278.9 214.8 170.9
Finance charges
(excluding revaluation of financial instruments)
319.4 250.1 203.7
Revaluation of financial instruments accounted at fair
value through profit or loss
25.4 16.0 8.0
  344.8 266.1 211.7

The following are included in the revaluation of financial instruments accounted at fair value through profit and loss shown above:


 
2008
£m
2007
£m
2006
£m
Movements in fair value of treasury instruments 13.9 6.7 3.3
Revaluation of put options over minority interests 11.5 9.3 4.7
  25.4 16.0 8.0

Note

1
Interest payable and similar charges are payable on bank overdrafts, bonds and bank loans held at amortised cost.

The majority of the Group’s long-term debt is represented by $650 million of US dollar bonds at an interest rate of 5.875% (prior to any interest rate swaps or cross-currency swaps), €1,850 million of Eurobonds at an average of 5.52% (prior to any interest rate or currency swaps) and £600 million of sterling bonds at 6.13%.

Average borrowings under the Revolving Credit Facilities (note 10) amounted to $774million at an average interest rate of 5.28% inclusive of margin.

Average borrowings under the US Commercial Paper Program (note 10) amounted to $10million at an average interest rate of 2.83% inclusive of margin.

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