Notes to the consolidated financial statements

Continuing

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Year to 31 March

 

Notes

2010
£m

2009
£m

Finance income

 

 

 

Interest receivable

 

5

10

Total finance income

 

5

10

 

 

 

 

Finance expense

 

 

 

Interest payable on bank borrowings

 

(4)

(15)

Interest payable on other borrowings

 

(49)

(38)

Net finance expense arising on defined benefit retirement schemes:

 

 

 

– interest cost

30

(76)

(79)

– expected return on plan assets

30

57

76

Finance lease charges

 

(2)

(3)

Unwinding of discounts in provisions

31

(1)

Fair value (losses)/gains on interest-related derivative financial instruments:

 

 

 

– interest rate swaps – fair value hedges

 

(2)

30

– derivatives not designated as hedges

 

(1)

1

Fair value adjustment of borrowings attributable to interest rate risk

 

3

(32)

Total finance expense

 

(74)

(61)

Net finance expense

 

(69)

(51)

Finance expense is shown net of borrowing costs capitalised into the cost of assets (Note 16) of £2 million (2009 – £11 million) at a capitalisation rate of 5.0% (2009 – 5.0%).

Interest payable on other borrowings includes £0.2 million (2009 – £0.2 million) of dividends in respect of the Group’s 6.5% cumulative preference shares.

The comparative information has been re-presented as set out in Note 1.

Discontinued

Included within the loss for the year in relation to discontinued operations (Note 12) is net finance expense of £2 million (2009 – £2 million).