National Grid 2008 Annual Report Download - page 588

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 35059
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 66
Description: EXHIBIT 15.1
0/5262.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/262/5*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 35059
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 66 Description: EXHIBIT 15.1
0/5262.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/262/5*
Table of Contents
74
Financial
p
osition and financial mana
g
ement
National Grid plc
Financial position and financial management
£37.8bn £5.4bn £17.6bn 3.2
Total assets Net assets Net debt Interest cover
Going concern
Having made enquiries, the Directors consider that the
Company and its subsidiary undertakings have adequate
resources to continue in business for the foreseeable future
and that it is therefore appropriate to adopt the going
concern basis in preparing the consolidated and individual
financial statements of the Company.
Financial position
Balance sheet
Our balance sheet at 31 March 2008 can be summarised as
follows:
The increase in net assets from £4,136 million at 31
March 2007 to £5,380 million at 31 March 2008 resulted from
the profit from continuing operations of £1,581 million, the
profit for the year from discontinued operations of
£1,618 million, net income recognised directly in equity of
£280 million and other changes in equity of £67 million,
partially offset by repurchases of shares of £1,522 million
and dividends paid of £780 million.
Net debt
Net debt increased by £5,853 million from £11,788 million at
31 March 2007 to £17,641 million at 31 March 2008 as a
result of cash flows from operations of £3,165 million,
disposal proceeds of £3,119 million exceeded by the
combination of exchange gains and net increases in the
values of derivatives of £133 million, capital expenditure of
£2,877 million, cash paid for acquisitions of £3,762 million,
net debt acquired (including cash) on acquisitions of
£2,186 million, cash outflow on repurchases of shares of
£1,498 million, dividends paid of £780 million and interest
charge of £901 million.
Net
Assets Liabilities assets
£m £m £m
Property, plant & equipment and non-
current intangible assets 24,605 – 24,605
Goodwill and non-current
investments 4,089
–
4,089
Current assets and liabilities 2,724
(
3,126
)
(
402
)
Other non-current assets and
liabilities 255
(
2,664
)
(
2,409
)
Post-retirement obli
g
ations 846
(
1,746
)
(
900
)
Deferred tax
–
(
3,407
)
(
3,407
)
Assets and liabilities held for sale 1,508 (63) 1,445
Total before net debt 34,027
(
11,006
)
23,021
Net debt 3,795
(
21,436
)
(
17,641
)
Total as at 31 March 2008 37,822
(
32,442
)
5,380
Total as at 31 March 2007 28,389 (24,253) 4,136
At 31 March 2008, net debt comprised borrowings of
£21,003 million (2007: £15,717 million) including bank
overdrafts of £10 million (2007: £6 million), less cash and
cash equivalents of £174 million (2007: £1,593 million),
financial investments of £2,095 million (2007: £2,098 million)
and derivative financial instruments with a net carrying value
of £1,093 million (2007: £238 million).
The maturity of borrowings is provided in note 21 to the
consolidated financial statements. At 31 March 2008 it can
be summarised as follows:
Gearing and interest cover
Gearing at 31 March 2008 and 31 March 2007, calculated as
net debt at that date expressed as a percentage of net debt
plus net assets shown in the balance sheet, amounted to
77% and 74% respectively. We do not consider that this
standard gearing ratio is an appropriate measure of our
balance sheet efficiency as it does not reflect the economic
value of the assets of our UK and US regulated businesses.