EasyJet 2009 Annual Report Download - page 28

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26 easyJet plc Annual report and accounts 2009
q
FINANCIAL REVIEW CONTINUED
Net (debt) / funds (excluding restricted cash)
2009
£ million
2008
£ million
Change
£ million
Cash and cash equivalents 788.6 632.2 156 .4
Money market deposits 286.3 230.3 56.0
1,074.9 862.5 212 .4
Bank loans (1,010.7) (524.9) (485.8)
Finance lease obligations (109.9) (102.0) ( 7.9)
(1,120.6) (626.9) (493.7)
Net (debt) / funds (excluding
restricted cash) (45.7) 235.6 (281.3)
The net of cash and cash equivalents, money market deposits and borrowings
(excluding restricted cash) at 30 September 2009 was a net debt position of
£45.7 million (30 September 2008: net funds of £235.6 million) following the
funding of capital expenditure through additional borrowings in the year.
Gearing increased in the year from 28.7% to 37.6%. The increase is a result of
additional borrowings relating to new owned aircraft and the movement in
the US dollar exchange rate. Gearing is consistent with that reported at the
half year. Additional debt drawdown in the second half of the year has been
offset by improved shareholders’ funds as a result of prots earned in the
summer and the reversal of fair value fuel hedge losses deferred in equity
at 31 March 2009.
Summary cash flow
2009
£ million
2008
£ million
Change
£ million
Cash generated from operations 134.5 296.2 (161.7 )
Acquisition of GB Airways –(118 . 0 ) 118 . 0
Net capital expenditure (430.3) (299.9) (130 .4)
Net increase/(decrease) in loan
nance 470.1 (5.5) 475.6
Net increase in money market
deposits (29.0) (8.7) (20.3)
Other including the effect of
exchange rates 11.1 49.0 (37.9)
Net increase/(decrease) in cash and
cash equivalents 156.4 (86.9) 243.3
Cash and cash equivalents at
beginning of year 632.2 719.1 (86.9)
Cash and cash equivalents at
end of year 788.6 632.2 156.4
Despite reduced prot levels in 2009, easyJet generated a positive operating
cashow in 2009 of £134.5 million as a result of a strong improvement in
working capital.
Capital expenditure in the year was funded from further borrowings and is
shown net of the proceeds from the sale of the three A321 aircraft and other
assets in the year.
The value of cash holdings beneted from foreign exchange movements
following the strengthening of both the US dollar and the euro against sterling.
Undrawn committed financing facilities
2009
US$ million
2008
US$ million
Change
US$ million
December 2007 facility 278 885 (607)
Revolving credit facility 250 250 –
Facilities at 30 September 528 1,135 (607)
Sale and leasebacknance secured
after the balance sheet date 222 –222
Undrawn committed
nancing facilities 750 1,135 (385)
Of the $937 million aircraft nancing facility agreed in December 2007,
$52 million was drawn in the year ended 30 September 2008, an additional
$607 million was drawn in the current year, leaving $278 million for future
deliveries. Seven A320 deliveries in the year were funded from additional
mortgage nance secured in September 2009.
In addition to the undrawn December 2007 facilities of $278 million, easyJet
has an undrawn revolving credit facility in place for $250 million, giving total
undrawn facilities at 30 September 2009 of $528 million.
Subsequent to the year end in November 2009, easyJet secured $222 million
of additional sale and leaseback nance bringing total undrawn facilities to
$750 million. Future aircraft deliveries will be funded through a combination
of undrawn committed facilities and surplus cash.
Improved cash position
£1,075*
£863*
£60
£60
£61 (£10)
Cash at
30 September 2008*
Operating prot
Depreciation and
amortisation
Net working capital
Tax, net interest, foreign
exchange and other
£471
Financing
(£508)
Capital expenditure
£78
Aircraft sales
Cash at
30 September 2009*
High level cash flow bridge
*Includes money market deposits but excludes restricted cash.
£ million