Financial risk management (Tables)

12 Months Ended

Dec. 31, 2018

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Summary of Net Debt Position

The Group’s net debt position is set out below:

All figures in £ millions	2018			2017
Cash and cash equivalents		568			645
Marketable securities		—			8
Derivative financial instruments		9			—
Bank loans and overdrafts		(43	)		(15	)
Bonds		(672	)		(1,062	)
Finance lease liabilities		(5	)		(8	)
Net debt		(143	)		(432	)

Summary of Sensitivity of The Carrying Value of Financial Instruments to Fluctuations in Interest Rates and Exchange Rates

As at 31 December 2018, the sensitivity of the carrying value of the Group’s financial instruments to fluctuations in interest rates and exchange rates is as follows:

All figures in £ millions	Carrying value			Impact of 1% increase in interest rates			Impact of 1% decrease in interest rates			Impact of 10% strengthening in sterling			Impact of 10% weakening in sterling
Investments in unlisted securities		93			—			—			(7	)		9
Cash and cash equivalents		568			—			—			(36	)		45
Derivative financial instruments		9			(3	)		3			1			(1	)
Bonds		(672	)		17			(17	)		61			(74	)
Other borrowings		(48	)		—			—			2			(3	)
Other net financial assets		620			—			—			(51	)		62
Total financial instruments		570			14			(14	)		(30	)		38

Schedule of Contractual Undiscounted Cash Flows Analysed by Maturity and Currency

The following table analyses the Group’s bonds and derivative assets and liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Short dated derivative instruments have not been included in this table. The amounts disclosed in the table are the contractual undiscounted cash flows (including interest) and as such may differ from the amounts disclosed on the balance sheet.

	Analysed by maturity												Analysed by currency
All figures in £ millions	Greater than one month and less than one year			Later than one year but less than five years			Five years or more			Total			USD			GBP			Other			Total
At 31 December 2018
Bonds		14			431			277			722			189			—			533			722
Rate derivatives – inflows		(20	)		(288	)		(343	)		(651	)		(40	)		(167	)		(444	)		(651	)
Rate derivatives – outflows		23			289			341			653			254			390			9			653
FX forwards – inflows		(251	)		(35	)		—			(286	)		—			(286	)		—			(286	)
FX forwards – outflows		275			37			—			312			312			—			—			312
Total		41			434			275			750			715			(63	)		98			750
At 31 December 2017
Bonds		20			601			533			1,154			184			—			970			1,154
Rate derivatives – inflows		(38	)		(975	)		(684	)		(1,697	)		(53	)		(751	)		(893	)		(1,697	)
Rate derivatives – outflows		48			1,060			667			1,775			1,003			751			21			1,775
FX forwards – inflows		—			—			—			—			—			—			—			—
FX forwards – outflows		—			—			—			—			—			—			—			—
Total		30			686			516			1,232			1,134			—			98			1,232