Notes to the consolidated financial statements
22. Reconciliation of movements in equity
| Equity share capital £m |
Share premium reserve £m |
Cash flow hedge reserve £m |
Treasury shares £m |
Currency translation £m |
Retained earnings £m |
Total equity £m |
Minority
interests £m |
Total £m |
|
| At 1 April 2007 | 51.9 | 446.5 | 1.0 | (1.3) | (0.2) | (126.5) | 371.4 | 1.7 | 373.1 |
| Total recognised income and | |||||||||
| expense for the year | – | – | – | – | 0.3 | 177.6 | 177.9 | 0.2 | 178.1 |
| Share-based payment | – | – | – | – | – | 0.5 | 0.5 | – | 0.5 |
| Exercise of LTIP awards | – | – | – | 0.5 | – | (0.5) | – | – | – |
| Equity dividends paid | – | – | – | – | – | (59.7) | (59.7) | (0.2) | (59.9) |
| At 1 April 2008 | 51.9 | 446.5 | 1.0 | (0.8) | 0.1 | (8.6) | 490.1 | 1.7 | 491.8 |
| Shares purchased | – | – | – | (1.7) | – | – | (1.7) | – | (1.7) |
| Total recognised income and | |||||||||
| expense for the year | – | – | (8.6) | – | 0.9 | (162.2) | (169.9) | 0.8 | (169.1) |
| Share-based payment | – | – | – | – | – | 0.5 | 0.5 | – | 0.5 |
| Exercise of LTIP awards | – | – | – | 0.2 | – | (0.2) | – | – | – |
| Equity dividends paid | – | – | – | – | – | (64.0) | (64.0) | (0.1) | (64.1) |
| At 31 March 2009 | 51.9 | 446.5 | (7.6) | (2.3) | 1.0 | (234.5) | 255.0 | 2.4 | 257.4 |
Nature and purpose of other reserves
Cash flow hedge reserve
This reserve is used to reflect the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge.
Treasury shares
The Northumbrian Water Group plc Employee Trust, through Northumbrian Water Share Scheme Trustees Limited, acquires shares to be used in the future to satisfy the vesting and exercise of awards under the Company’s LTIP.
23. Additional cash flow information
Analysis of net debt as at 31 March 2009
| As at 1.4.2008 £m |
Cash flow £m |
Other non-cash movements £m |
As at 31.3.2009 £m |
|
| Cash and cash equivalents | 266.4 | (174.1) | – | 92.3 |
| Short term cash deposits | – | 160.6 | – | 160.6 |
| Loans (principal of £2,331.8 million, 2008: £2,282.8 million) | (2,327.0) | (26.4) | (17.5) | (2,370.9) |
| Finance leases (principal of £111.6 million, 2008: £89.7 million) | (89.8) | (13.8) | (8.1) | (111.7) |
| (2,150.4) | (53.7) | (25.6) | (2,229.7) |
The difference between the principal value of £2,443.4 million (2008: £2,372.5 million) and the carrying value of £2,482.6 million (2008: £2,416.8 million) are unamortised issue costs of £15.4 million (2008: £15.9 million) and a credit of £54.6 million (2008: £60.2 million) in excess of the original loan proceeds to reflect the fair value of loans owed by subsidiaries acquired in 2003.
Non-cash movements on loans relate to the principal uplift on index linked borrowings and amortisation of loan issue costs offset by the amortisation of debt fair value for the year. Non-cash movements on finance leases relate to the inception of new finance leases on the acquisition of plant and machinery during the year.