NATS-Annual-Report-2015

Annual Report and Accounts 2015 | NATS Holdings Limited
Financial Statements 137
Notes forming part of the
consolidated accounts
(continued)
26. Financial commitments
2015 2014
£m £m
Amounts contracted but not provided for in the accounts 69.4 44.8
Minimum lease payments under operating leases recognised in the income statement 23.3 23.5
At the balance sheet date the group had outstanding commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
2015 2014
£m £m
Within one year 23.4 23.6
In the second to fifth years inclusive 49.7 61.5
After five years 25.7 31.6
98.8 116.7
Operating lease payments represent rentals payable by the group for certain of its properties, equipment used for air navigation and
vehicles. Leases are negotiated on varying terms depending on the type of asset leased.
NERL entered into a finance lease agreement in March 2015. The leased asset and lease obligations will be recognised during the
financial year ending 31 March 2016 on transfer of the asset to NERL. The fair value of the asset at transfer is expected to be £2.0m and
future minimum lease payments are expected to fall due as follows:
2015 2014
£m £m
Within one year 0.2 -
In the second to fifth years inclusive 0.7 -
After five years 1.1 -
2.0 -
Guarantees
NATS Holdings Limited has given guarantees to the Ministry of Defence (MOD) in relation to NERL’s performance under its contract
with the MOD.
As part of the tendering process for new contracts, the NATS group may be required to put in place a tender or bid guarantee which
expires once the contract is awarded. Where tenders are successful, contractual terms may also require performance or advance
payment guarantees. These guarantees vary in length depending on the life of the contract and may run until the expiry of the contract.
The total guarantees provided in these respects at 31 March 2015 was £4.9m (2014: £4.6m).
Financial
Statements