Year ended 31 July 2006
13. Property, plant and equipment
| Land and buildings | |||||
|---|---|---|---|---|---|
| Freehold
£m |
Finance
lease £m |
Operating
leasehold improvements £m |
Plant
machinery equipment £m |
Total
£m |
|
| Cost | |||||
| At 1 August 2005 | 619 | 56 | 146 | 717 | 1,538 |
| Exchange rate adjustment | (17) | (1) | (10) | (29) | (57) |
| New businesses | 46 | 1 | 6 | 46 | 99 |
| Additions | 104 | 8 | 48 | 205 | 365 |
| Disposals and transfers | (25) | – | (2) | (53) | (80) |
| Property reclassified as held for sale | (7) | – | – | – | (7) |
| At 31 July 2006 | 720 | 64 | 188 | 886 | 1,858 |
| Accumulated depreciation | |||||
| At 1 August 2005 | 131 | 11 | 81 | 432 | 655 |
| Exchange rate adjustment | (3) | (1) | (3) | (15) | (22) |
| Charge for the year | |||||
| – owned assets | 22 | – | 12 | 85 | 119 |
| – leased assets | – | 1 | – | 14 | 15 |
| Disposals and transfers | (6) | – | (2) | (44) | (52) |
| Property reclassified as held for sale | (1) | – | – | – | (1) |
| At 31 July 2006 | 143 | 11 | 88 | 472 | 714 |
| Owned assets | 577 | – | 100 | 375 | 1,052 |
| Assets under finance leases | – | 53 | – | 39 | 92 |
| Net book amount at 31 July 2006 | 577 | 53 | 100 | 414 | 1,144 |
| Net book amount at 1 August 2005 | 488 | 45 | 65 | 285 | 883 |
| Cost | |||||
| At 1 August 2004 | 507 | 50 | 121 | 630 | 1,308 |
| Exchange rate adjustment | 19 | 2 | 3 | 20 | 44 |
| New businesses | 67 | – | 1 | 12 | 80 |
| Additions | 86 | 6 | 24 | 122 | 238 |
| Disposals and transfers | (54) | (2) | (3) | (67) | (126) |
| Property reclassified as held for sale | (6) | – | – | – | (6) |
| At 31 July 2005 | 619 | 56 | 146 | 717 | 1,538 |
| Accumulated depreciation | |||||
| At 1 August 2004 | 117 | 11 | 66 | 395 | 589 |
| Exchange rate adjustment | 3 | – | 2 | 10 | 15 |
| Charge for the year | |||||
| – owned assets | 16 | – | 15 | 72 | 103 |
| – leased assets | – | 1 | – | 10 | 11 |
| Disposals and transfers | (3) | (1) | (2) | (55) | (61) |
| Property reclassified as held for sale | (2) | – | – | – | (2) |
| At 31 July 2005 | 131 | 11 | 81 | 432 | 655 |
| Owned assets | 488 | – | 65 | 253 | 806 |
| Assets under finance leases | – | 45 | – | 32 | 77 |
| Net book amount at 31 July 2005 | 488 | 45 | 65 | 285 | 883 |
| Net book amount at 1 August 2004 | 390 | 39 | 55 | 235 | 719 |
Included in the amounts above are £89 million (2005: £48 million) relating to assets under construction. At 31 July 2006 £92 million of property, plant and equipment had been pledged as security for liabilities (2005: £77 million).
