Notes to the consolidated financial statements
18. Obligations under hire purchase contracts and finance leases
| 31.3.2009 £m |
31.3.2008 £m |
|
| Amounts due: | ||
| Not later than one year | 6.9 | 6.1 |
| After one year but not more than five years | 23.2 | 19.2 |
| Later than five years | 160.0 | 123.8 |
| 190.1 | 149.1 | |
| Less finance charges allocated to future periods | (78.4) | (59.3) |
| Present value of minimum lease payments | 111.7 | 89.8 |
| Disclosed as due: | ||
| Not later than one year | 6.9 | 6.1 |
| After more than one year | 104.8 | 83.7 |
| 111.7 | 89.8 | |
Lease commitments
The Group has entered into non-cancellable operating leases in respect of land and buildings, plant, machinery and motor vehicles. The future minimum rentals payable under non-cancellable operating leases are as follows:
| 31.3.2009 £m |
31.3.2008 £m |
|
| Not later than one year | 0.9 | 0.7 |
| After one year but not more than five years | 3.1 | 2.6 |
| After five years | 26.8 | 25.7 |
| 30.8 | 29 |
19. Provisions
| £m | |
| At 1 April 2008 | |
| Current | 0.2 |
| Non-current | 2.8 |
| At 1 April 2008 | 3.0 |
| Utilised | (0.3) |
| At 31 March 2009 | 2.7 |
| Analysed as: | |
| Current | 0.2 |
| Non-current | 2.5 |
| 2.7 | |
The provision represents outstanding discretionary pension liabilities. The discretionary pension liabilities have been calculated by an independent actuary and are expected to be paid over the remaining lives, which is approximately twelve years.
20. Financial instruments
(a) Group strategy
The level of capital expenditure which the Group is obliged to incur is such that it cannot be wholly financed by internally generated sources. As a result, the Group must rely upon raising additional finance on a regular basis, to be principally used to fund the long term assets required in its regulated business. The Group’s strategy is to finance such investment by raising medium to long term debt, to provide a balance sheet match with long term assets and to fix a major proportion of interest rates.