Notes to the consolidated financial statements
23. Additional cash flow information continued
Analysis of net debt as at 31 March 2008
| As at 1.4.2007 £m |
Cash flow £m |
Other non-cash movements £m |
As at 31.3.2008 £m |
|
| Cash and cash equivalents | 315.8 | (49.4) | – | 266.4 |
| Loans (principal of £2,282.8 million, 2007: £2,284.0 million) | (2,334.1) | 18.0 | (10.9) | (2,327.0) |
| Finance leases (principal of £89.7 million, 2007: £61.2 million) | (61.3) | (22.7) | (5.8) | (89.8) |
| (2,079.6) | (54.1) | (16.7) | (2,150.4) |
The difference between the principal value of £2,372.5 million (2007: £2,345.2 million) and the carrying value of £2,416.8 million (2007: £2,395.4 million) are unamortised issue costs of £15.9 million (2007: £16.1 million) and a credit of £60.2 million (2007: £66.3 million) in excess of the original loan proceeds to reflect the fair value of loans owed by subsidiaries acquired in 2003.
24. Financial commitments
Capital expenditure
| 31.3.2009 £m |
31.3.2008 £m |
|
| Expenditure contracted for | 168.8 | 166.8 |
In addition to these commitments, the Group has longer term expenditure plans, which include investment to meet shortfalls in performance and condition, and to provide for new demand and growth within the water and sewerage business.
25. Pensions and other post-retirement benefits
The Group operates a defined benefit pension scheme, Northumbrian Water Pension Scheme (NWPS or the scheme), providing benefits based on final pensionable remuneration to 2,169 active members at 31 March 2009 (2008: 2,391).
The assets of the NWPS are held separately from those of the Group in independently administered funds.
The most recent actuarial valuation of the scheme was at 31 December 2007. At that date the value of assets amounted to £732.3 million and the funding level was 106.1%.
The future service contribution rate jointly payable by members and the employers from 31 December 2007 was 22.6% of pensionable salaries. Members’ contributions are 7.3% on average with the employers paying 15.3%.
The employer contribution rate was assessed using the projected unit method and the following actuarial assumptions:
| % | |
| Pre-retirement | 6.1 |
| Post-retirement | 5.2 |
| Pay increases | 3.65 |
| Pension increases | 3.4 |
| Price inflation | 3.4 |
Following the 2004 actuarial valuation the employers had prepaid contributions to the scheme up to 31 December 2010. The scheme actuary recommended that regular contributions should recommence from 1 January 2011.
The scheme also has a defined contribution section which had 310 active members at 31 March 2009 (2008: 219). Members can choose to contribute either, 3%, 4% or 5% of salary, with employers contributing at either, 6%, 7% or 8% depending on the member contribution rate. The contributions paid to the defined contribution section by the Group in the year totalled £0.4 million (2008: £0.1 million).