Notes to the consolidated financial statements
20. Financial instruments continued
(j) Interest rate risk table
In relation to financial liabilities, the following table shows the impact on profit and equity of an increase in the variable cost of borrowing. The 2009 analysis below reflects a larger possible change in interest rates than in 2008, due to the increased volatility in the financial markets. The range is considered a reasonable basis and highlights this is not material to the Group:
| Increase in basis points | Effect on profit/equity £m |
| 2009 | |
| +50 | 0.8 |
| +100 | 1.5 |
| +150 | 2.3 |
| 2008 | |
| +35 | 0.5 |
| +25 | 0.4 |
| +10 | 0.2 |
(k) Contractual maturity of financial liabilities (principal and future interest payments)
The table below summarises the maturity profile of the Group’s financial liabilities at 31 March based on contractual undiscounted payments:
Year ended 31 March 2009
| On demand £m |
Less than 3 months £m |
3–12 months £m |
1–5 years £m |
More than 5 years £m |
Total £m |
|
| Interest bearing loans and borrowings | 16.5 | 40.7 | 113.9 | 671.6 | 4,632.9 | 5,475.6 |
| Trade and other payables | – | 63.0 | 27.6 | 0.2 | – | 90.8 |
| 16.5 | 103.7 | 141.5 | 671.8 | 4,632.9 | 5,566.4 |
Year ended 31 March 2008
| On demand £m |
Less than 3 months £m |
3–12 months £m |
1–5 years £m |
More than 5 years £m |
Total £m |
|
| Interest bearing loans and borrowings | 27.8 | 42.7 | 208.0 | 797.2 | 4,531.3 | 5,607.0 |
| Trade and other payables | – | 65.5 | 28.3 | – | – | 93.8 |
| 27.8 | 108.2 | 236.3 | 797.2 | 4,531.3 | 5,700.8 |