BT 2005 Annual Report Download - page 95

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20. Debtors 2005
£m
2004
£m
Trade debtors
a
1,927 2,126
Amounts owed by joint ventures (trading) 15
Other debtors 495 327
Accrued income 1,423 1,392
Pension fund prepayment
b
1,118 1,172
Other prepayments 423 167
Total debtors 5,387 5,189
a
Trade debtors are stated after deducting £338 million (2004 – £345 million) for doubtful debts. The amount charged to the group profit and loss account
for doubtful debts for the year ended 31 March 2005 was £150 million (2004 – £136 million net of an exceptional credit of £23 million, 2003 – £264
million).
b
Falling due after more than one year.
21. Current asset investments
2005
£m
2004
£m
Listed investments 1,106 1,247
Other short-term deposits and investments
a
3,491 3,916
Total current asset investments 4,597 5,163
Market value of listed investments 1,106 1,247
a
Included within other short-term deposits and investments in the 2004 financial year is £144 million invested with a swap counterparty. The counterparty
had security over this investment in the event of BT defaulting on the swap.
22. Loans and other borrowings 2005
£m
2004
£m
US dollar 8.875% notes 2030 (minimum 8.625%
a
)1,604 1,686
5.75% bonds 2028 596 596
3.5% indexed linked notes 2025 278 270
8.625% bonds 2020 297 297
7.75% notes 2016 (minimum 7.5%
a
)692 691
Euro 7.125% notes 2011 (minimum 6.875%
a
)755 734
US dollar 8.375% notes 2010 (minimum 8.125%
a
)1,754 1,795
US dollar 8.765% bonds 2009 123 123
Euro 11.875% senior notes 2009 –3
US dollar convertible 2008 (0.75%) 88 97
US dollar 7% notes 2007 573 596
12.25% bonds 2006 229 229
7.375% notes 2006 (minimum 7.125%
a
)399 398
Euro 6.375% notes 2006 (minimum 6.125%
a
)1,923 1,861
US dollar 7.875% notes 2005 (minimum 7.624%
a
)1,861 1,902
US dollar 6.75% bonds 2004 –597
Total listed bonds, debentures and notes 11,172 11,875
Lease finance 993 1,099
Bank loans due 2007-2009 (average effective interest rate 9.7%) 240 480
Floating rate note 2005-2009 (average effective interest rate 3.8%) 90 101
Floating rate loan 2006 (average effective interest rate 5.6%) 92 140
Bank overdrafts and other short-term borrowings 22
Total loans and other borrowings 12,589 13,697
a
The interest rate payable on these notes will be subject to adjustment from time to time if either Moody’s or Standard and Poor’s (S&P) reduces the
rating ascribed to the group’s senior unsecured debt below A3 in the case of Moody’s or below A minus in the case of S&P. In this event, the interest
rate payable on the notes and the spread applicable to the floating notes will be increased by 0.25% for each ratings category adjustment by each ratings
agency. In addition, if Moody’s or S&P subsequently increase the rating ascribed to the group’s senior unsecured debt, then the interest rate then
payable on notes and the spread applicable to the floating notes will be decreased by 0.25% for each rating category upgrade by each rating agency, but
in no event will the interest rate be reduced below the minimum interest rate reflected in the table above.
The interest rates payable on loans and borrowings disclosed above reflect the coupons on the underlying issued loans
and borrowings and not the interest rates achieved through applying associated currency and interest rate swaps.
94 BT Group plc Annual Report and Form 20-F 2005 Notes to the financial statements