EasyJet 2010 Annual Report Download - page 25

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Summary consolidated statement
of financial position 30 September
2010
£ million
30 September
2009
£ million Change
£ million
Goodwill 365.4 365.4 –
Property, plant and equipment 1,928.1 1,612.2 315.9
Net working capital (589.8) (503.9) (85.9)
Restricted cash 55.6 72.3 (16.7)
Current and deferred taxation (175.4) (134.0) (41.4)
Net debt (40.1) (45.7) 5.6
Other non-current assets and
liabilities (43.1) (59.0) 15.9
Net assets 1,500.7 1,307.3 193.4
Opening shareholders’ equity 1,307.3 1,278.2 29.1
Prot in year 121.3 71.2 50.1
Change in hedging reserve 58.7 (51.5) 110. 2
Other movements 13.4 9.4 4.0
1,500.7 1,307.3 193.4
Net assets increased by £193.4 million over the year, driven by the prot
for the year and an increase of £58.7 million in the hedging reserve as
high cost jet swaps matured, offset in part by the US dollar strengthening
against sterling.
The net book value of property, plant and equipment increased by
£315.9 million, driven principally by the addition of a net 21 owned A320
family aircraft.
Net working capital improved by £85.9 million to a net negative
£589.8million. As easyJet’s passengers pay for their ights at the time
ofbooking, the key component of this balance is unearned revenue of
£356.5 million; an increase of £32.2 million during the year driven by
increased bookings and improvements in yield. A further benet was
derived from renegotiating contract terms with key card acquirers,
contributing to a reduction in trade receivables of £81.9 million.
Restricted cash principally relates to operating lease deposits and
customer payments for holidays and decreased by £16.7 million to
£55.6million. This reduction was driven by the implementation of
insurance arrangements to meet our obligations under the Package
Holiday Regulations and reductions in operating lease deposits as we
continued to return the Boeing 737 eet to lessors.
Current and deferred taxation liabilities increased by £41.4 million to
£175.4 million, driven by higher protability and deferred taxation on the
gains recognised on derivatives accounted for as cash ow hedges.
30 September
2010
£ million
30 September
2009
£ million Change
£ million
Cash and cash equivalents 911.9 788.6 123.3
Money market deposits 260.0 286.3 (26.3)
1,171.9 1,074.9 97.0
Bank loans (1,057.0) (1,010.7) (46.3)
Finance lease obligations (155.0) (109.9) (45.1)
(1,212.0) (1,120.6) (91.4)
Net debt (40.1) (45.7) 5.6
easyJet ends the period with £1,171.9 million in cash and money market
deposits; an increase of £97.0 million compared with 30 September
2009. Net borrowings increased by £91.4 million in the period.
Themajority of mortgage and nance lease debt and all money market
deposits are denominated in US dollars and the sterling value of this net
liability increased by £9.1 million during the year as a consequence of the
strengthening of the US dollar against sterling.
Net debt at 30 September 2010 was £40.1 million compared with
£45.7million at 30 September 2009. Strong operating cash ow and the
increase in net assets delivered a reduction in gearing of six percentage
points to 32% at 30 September 2010.
Going concern
In adopting the going concern basis for preparing the accounts, the
Directors have considered the business activities as set out on pages
8to13 as well as easyJet’s principal risks and uncertainties as set out on
pages 25 to 27. Based on easyJet’s cash ow forecasts and projections,
theBoard is satised that easyJet will be able to operate within the
levelof its facilities and available cash for the foreseeable future. For this
reason, easyJet continues to adopt the going concern basis in preparing
its accounts.
Committed financing facilities
We had $754 million of financing committed as at 30September 2010.
$754m
Overview Business review Governance Accounts Other information
23
easyJet plc
Annual report and accounts 2010