Notes to the financial statements
28 Analysis of net debt
| 25 March 2007 £m |
Cash flow £m |
Disposals £m |
Other non-cash movements £m |
22 March 2008 £m |
|
|---|---|---|---|---|---|
| Current assets | |||||
| Cash and cash equivalents | 1,128 | (409) | – | – | 719 |
| Derivative financial instruments | – | – | – | 4 | 4 |
| 1,128 | (409) | – | 4 | 723 | |
| Current liabilities | |||||
| Bank overdrafts | (363) | 245 | – | – | (118) |
| Borrowings | (10) | 10 | – | – | - |
| Derivative financial instruments | (2) | – | – | (4) | (6) |
| (375) | 255 | – | (4) | (124) | |
| Non-current liabilities | |||||
| Borrowings | (2,039) | 29 | – | (25) | (2,035) |
| Finance leases | (51) | – | – | 2 | (49) |
| Derivative financial instruments | (43) | – | 7 | 18 | (18) |
| (2,133) | 29 | 7 | (5) | (2,102) | |
| (2,508) | 284 | 7 | (9) | (2,226) | |
| Total net debt | (1,380) | (125) | 7 | (5) | (1,503) |
Net debt incorporates the Group’s borrowings (including accrued interest), bank overdrafts, fair value of derivatives and obligations under finance leases, less cash and cash equivalents.
Reconciliation of net cash flow to movement in net debt
| 2008 £m |
2007 £m |
|
|---|---|---|
| Decrease in cash and cash equivalents | (164) | (77) |
| Decrease in debt | 39 | 79 |
| Loan disposed of with part disposal of Sainsbury’s Bank | - | 45 |
| Disposal of derivative financial instruments | 7 | – |
| Other non-cash movements | (5) | (12) |
| (Increase)/decrease in net debt in the year | (123) | 35 |
| Opening net debt at the beginning of the year | (1,380) | (1,415) |
| Closing net debt at the end of the year | (1,503) | (1,380) |