Notes to the consolidated financial statements

Continuing

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Year to 31 March

Notes

2011
£m

2010
£m

Finance income

 

 

 

Interest receivable

 

3

2

Total finance income

 

3

2

 

 

 

 

Finance expense

 

 

 

Interest payable on bank and other borrowings

 

(45)

(54)

Net finance expense arising on defined benefit retirement schemes:

 

 

 

– interest cost

30

(76)

(76)

– expected return on plan assets

30

72

57

Finance lease charges

 

(1)

(1)

Unwinding of discounts in provisions

31

(2)

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

 

 

 

– interest rate swaps – fair value hedges

 

7

(2)

– derivatives not designated as hedges

 

(3)

(1)

Fair value adjustment of borrowings attributable to interest rate risk

 

(7)

3

Recycle of cash flow hedge reserve in respect of borrowings repaid

 

(6)

Total finance expense

 

(61)

(74)

Net finance expense

 

(58)

(72)

Finance expense is shown net of borrowing costs capitalised into the cost of assets (Note 16) of £nil (2010 – £2 million at a capitalisation rate of 5.0%).

Interest payable on other borrowings includes £0.2 million (2010 – £0.2 million) of dividends in respect of the Group’s 6.5% cumulative preference shares.

Discontinued

Included within the loss for the year in relation to discontinued operations (Note 12) is net finance income of £nil (2010 – £1 million).