Annual Report and Accounts 2008
17 Financial assets
| 2008 £m |
2007 £m |
|
|---|---|---|
| Available for sale investments – Unlisted ordinary shares | 9.2 | 7.2 |
| Derivative financial instruments – Interest rate swaps | 1.5 | 1.7 |
| Derivative financial instruments – Fuel price swaps | – | 3.6 |
| Financial assets included in non-current assets | 10.7 | 12.5 |
| Derivative financial instruments – Interest rate swaps | 1.5 | 1.5 |
| Derivative financial instruments – Fuel price swaps | 1.0 | 8.5 |
| Financial assets included in current assets | 2.5 | 10.0 |
Further information on the Group’s use of fuel price swaps, interest rate swaps and foreign exchange forward contracts is included in note 31.
Available for sale investments
| 2008 £m |
2007 £m |
|
|---|---|---|
| Cost or valuation: | ||
| At 1 January | 8.0 | 19.3 |
| Disposals | (0.1) | (12.0) |
| Foreign exchange | 2.1 | 0.7 |
| At 31 December | 10.0 | 8.0 |
| Accumulated impairment: | ||
| At 1 January | (0.8) | (5.8) |
| Disposals | – | 5.0 |
| At 31 December | (0.8) | (0.8) |
| Net carrying amount: | ||
| At 31 December | 9.2 | 7.2 |
| At 1 January | 7.2 | 13.5 |
The principal available for sale investments are as follows:
| Name | Country of registration | Class of share | Proportion held% |
|---|---|---|---|
| London & Continental Railways (LCR) | England and Wales | Ordinary shares | 21 |
| Prepayment Cards Limited (PCL) | England and Wales | Ordinary shares | 23.5 |
| Metros Ligeros de Madrid, S.A. (MLM) | Spain | Ordinary shares | 15 |
| Various investments within Alsa and Continental Auto | Spain | Ordinary shares | 4–16 |
Disposals during the year relate to investments held by Alsa and Continental Auto.
Disposals during 2007 reflect the receipt of the final preference share dividend from Union Railways (South) Limited, and the subsequent redemption of these preference shares.
Although the Group holds more than 20% of the ordinary shares of PCL, it does not have a presence on the Board and is not in a position to exert significant influence over this investment. Although the Group holds more than 20% of the ordinary shares of LCR, it is not in a position to exert significant influence, as the company’s debt holders are effectively in control of the company. The investment is held at nil value and the Group has no obligation to make further investments.