The group’s policy on funding capacity is to ensure that we always have sufficient long term funding and committed bank facilities in place to meet foreseeable peak borrowing requirements. At 31st March 2010 the group had cash and deposits of £179.1 million and £230.0 million of undrawn committed bank facilities available to meet future funding requirements. The group also has a number of uncommitted facilities, including metal leases, and overdraft lines at its disposal.
Gross borrowings (net of related swaps) of £652.5 million at 31st March 2010 included £570.3 million of debt arranged under long term bond issues and long term funding from the European Investment Bank (EIB). Of this, £84.4 million falls due to be repaid in the 15 months to 30th June 2011 (the going concern period). This has been refinanced by a new ten year €100 million (£89.2 million) loan arranged since 31st March 2010. £200.0 million of the committed bank facilities have expiry dates after 30th June 2011. The maturity dates of the group’s debt and borrowing facilities are illustrated in the table and chart above.
The directors have assessed the future funding requirements of the group and the company and compared it to the level of long term debt and committed bank facilities for the 15 months from the balance sheet date. The assessment included a sensitivity analysis on the key factors which could affect future cash flow and funding requirements. Having undertaken this work the directors are of the opinion that the group has adequate resources to fund its operations for the foreseeable future and so determine that it is appropriate to prepare the accounts on a going concern basis.