QinetiQ Annual Report 2017

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128
Financial
Financial statements
statements QinetiQ
QinetiQ Group
Group
plc
plc
Annual
Annual
Report
Report
and
and
Accounts
Accounts
2017
2017
www.qinetiq.com
Notes to the financial statements continued
24. Net cash
As at 31 March
2017 2016
all figures in £ million Assets Liabilities Net Assets Liabilities Net
Current financial assets/(liabilities)
Deferred financing costs 0.3 – 0.3 0.3 – 0.3
Borrowings 0.3 – 0.3 0.3 – 0.3
Available-for-sale investment 10.4 – 10.4 9.9 – 9.9
Derivative financial instruments – (0.8) (0.8) 0.6 (0.2) 0.4
Total current financial assets/(liabilities) 10.7 (0.8) 9.9 10.8 (0.2) 10.6
Non-current assets/(liabilities)
Deferred financing costs 0.2 – 0.2 0.5 – 0.5
Borrowings 0.2 – 0.2 0.5 – 0.5
Derivative financial instruments 0.3 (0.3) – 0.1 (0.2) (0.1)
Total non-current financial assets/(liabilities) 0.5 (0.3) 0.2 0.6 (0.2) 0.4
Cash 88.9 – 88.9 68.4 – 68.4
Cash equivalents 122.9 – 122.9 195.1 – 195.1
Total cash and cash equivalents 211.8 – 211.8 263.5 – 263.5
Total net cash as defined by the Group 221.9 274.5
At 31 March 2017, the Group held £1.5m (2016: £0.1m) of cash which is restricted in its use. The available-for-sale investment is a ‘Libor-plus’ investment fund
investing in a portfolio of AAA and AA-rated asset backed securities and corporate floating rate notes.
Reconciliation of net cash flow to movement in net cash
all figures in £ million 2017 2016
(Decrease)/increase in cash and cash equivalents in the year (56.5) 78.4
Capital element of finance lease payments – 1.4
Capital element of finance lease receipts – (1.5)
Change in net cash as defined by the Group resulting from cash flows (56.5) 78.3
Amortisation of deferred financing costs (0.3) (0.3)
Foreign exchange and other non-cash movements 4.2 1.0
Movement in net cash as defined by the Group (52.6) 79.0
Net cash as defined by Group at the beginning of the year 274.5 195.5
Net cash as defined by Group at the end of the year 221.9 274.5
Less: other financial assets and liabilities (10.1) (11.0)
Total cash and cash equivalents 211.8 263.5
25. Operating leases
Group as a lessor
The Group receives rental income on certain properties. Primarily these are properties partially occupied by Group companies, with vacant space sub-let to thirdparty
tenants. The Group had contracted with tenants for the following future minimum lease payments:
all figures in £ million 2017 2016
Within one year 5.3 6.5
In the second to fifth years inclusive 8.8 13.6
Greater than five years 6.1 7.2
20.2 27.3
Group as a lessee
all figures in £ million 2017 2016
Lease and sub-lease income statement expense for the year 6.7 5.3
The Group had the following total future minimum lease payment commitments:
all figures in £ million 2017 2016
Within one year 8.2 9.4
In the second to fifth years inclusive 17.5 8.1
Greater than five years 6.1 1.5
31.8 19.0
Operating lease payments represent rentals payable by the Group on certain property, plant and equipment. Principal operating leases are negotiated for a term of
approximately ten years.