Year ended 31 July 2006
25. Obligations under finance leases
| Gross
2006 £m |
Gross
2005 £m |
Net
2006 £m |
Net
2005 £m |
|
|---|---|---|---|---|
| Due within one year | 24 | 6 | 18 | 4 |
| Due in one to five years | 50 | 30 | 37 | 23 |
| Due in over five years | 28 | 42 | 20 | 35 |
| 102 | 78 | 75 | 62 | |
| Less: future finance charges | (27) | (16) | ||
| Present value of finance lease obligations | 75 | 62 | ||
| Current | 18 | 4 | ||
| Non current | 57 | 58 | ||
| Total obligations under finance leases | 75 | 62 |
It is the Group’s policy to lease certain of its property, plant and equipment under finance leases. The average lease term is 7 years (2005: 7 years). For the year ended 31 July 2006, the average effective borrowing rate was 4.7% (2005: 4.9%). Finance lease obligations included above are secured against the assets concerned.
The currency analysis of the present value of finance lease obligations is as follows:
| Net
2006 £m |
Net
2005 £m |
|
|---|---|---|
| Sterling | 5 | 4 |
| US dollar | 26 | 16 |
| Euro | 37 | 34 |
| Other | 7 | 8 |
| Total | 75 | 62 |
