2005 - The Weir Group

27. Additional cash flow information (continued)
2005 2004
£'000
£'000
Disposals of subsidiaries & joint ventures
Current year disposals
– discontinued operations 13,983 -
– other 257 -
Prior year disposals deferred proceeds and costs - 57
Proceeds from disposal of joint venture - 4,545
14,240 4,602
Reconciliation of net increase (decrease) in cash & cash equivalents to movement in net (debt) funds
Net increase (decrease) in cash & cash equivalents 2,426 (20,566)
Net (increase) decrease in debt (85,492) 32,298
Change in net funds resulting from cash flows (83,066) 11,732
Lease acquired (259) -
Lease disposed 35 -
Lease inception (147) (216)
Foreign currency translation differences (5,591) 580
Change in net funds during the period (89,028) 12,096
Net funds at beginning of period 12,600 504
Net (debt) funds at end of period (76,428) 12,600
Net (debt) funds comprises the following:
Cash & short-term deposits (note 22) 109,628 97,622
Current interest-bearing loans & borrowings (note 23) (10,928) (3,028)
Non current interest-bearing loans & borrowings (note 23) (175,128) (81,994)
(76,428) 12,600
28. Commitments & contingencies
The Group has entered into commercial leases for land and buildings, motor vehicles and plant and equipment. Land and building leases have an average
term of between three and ten years, motor vehicle leases have an average term of between three and four years and plant and equipment leases have an
average term of between five and six years. Certain leases have terms of renewal, at the option of the lessee, but there are no purchase options or
escalation clauses. Future minimum rentals payable under non-cancellable operating leases are as follows:
2005 2004
£'000
£'000
Within one year 7,480 6,703
After one year but not more than five years 13,717 7,219
More than five years 1,921 1,368
23,118 15,290
Finance lease commitments
The Group has finance leases for various items of plant and equipment and purchased software. Future minimum lease payments under finance leases
together with the present value of the net minimum lease payments are as follows :
2005 2005 2004 2004
Minimum Present value Minimum Present value
payments of payments payments of payments
£'000 £'000 £'000 £'000
Within one year 466 407 579 475
After one year but not more than five years 743 657 836 706
More than five years 176 168 228 225
Total minimum lease payments 1,385 1,643
Less amounts representing finance charges (153) (237)
Present value of minimum lease payments 1,232 1,232 1,406 1,406
It is the Group's policy to lease certain of its assets under finance leases. The weighted average outstanding lease term is 4.93 years (2004: 5.53 years).
For the 52 weeks ended 30 December 2005, the weighted average effective borrowing rate was 5.69% (2004: 5.88%). All leases are on a fixed repayment
basis and no arrangements have been entered into for contingent rental payments.
The Weir Group PLC Annual Report 2005 79