Richemont Annual Report and Accounts 2008
45
Business review:
Financial review
At 31 March 2008, the Group's interest in BAT's ordinary
shares amounted to 19.3 per cent and BAT's market
capitalisation, based on 2 016 million ordinary shares
in issue, amounted to £ 38 126 million (
47 815 million).
The fair value of the Group's investment in BAT therefore
amounted to £ 7 376 million (
9 250 million). The carrying
value of the investment amounted to £ 2 391 million
(
2 998 million) on that date. Details of movements in the
Group's effective interest in BAT ordinary shares during the
year are given in the commentary on page 42. The carrying
value of investments in other associated undertakings at
31 March 2008 was
10 million.
Net current assets increased by
272 million compared
to March 2007. The value of inventories increased
by 20 per cent to
2 076 million. The inventory increase
largely reflects the purchase of raw materials and an
increase in the work in progress inventories. Consequently,
the inventory rotation rate has slowed by 1.3 months to
16.4 months. The increases in inventories were partly
offset by increases in current liabilities.
At 31 March 2008, net cash amounted to
1 246 million.
Cash balances were primarily denominated in euros, whereas
borrowings were spread across the principal currencies
of the countries in which the Group has significant
operations, namely, euros, yen, US dollars, Hong Kong
dollars and Swiss francs. Borrowings reflect the financing
of net operating assets in the countries concerned.
Unitholders' equity amounted to
7 648 million, net of the
cost of repurchased treasury units and related instruments.
These treasury units are held as a hedge against the exercise
of executive unit options. At 31 March 2008, the Group
held 13.1 million treasury units, representing 2.5 per cent
of the total number of the `A' bearer units in issue.
SUMMARISED BALANCE SHEET
in
millions
31 March 2008
31 March 2007
Non-current assets
Fixed assets
1 207
922
Investment in associated undertakings
3 008
3 506
Other non-current assets
493
546
4 708
4 974
Net current assets
1 866
1 594
Net operating assets
6 574
6 568
Net cash
1 246
1 141
Cash and cash equivalents
1 771
1 623
Borrowings
(525)
(482)
Other non-current liabilities
(168)
(196)
7 652
7 513
Equity
Unitholders' equity
7 648
7 511
Minority interests
4
2
7 652
7 513