Laing O'Rourke Annual Review 2009 Financial statements 74- 75 14 Property, plant and equipment ( continued) Finance leases: Included in ' plant, equipment and vehicles' are assets held under finance leases at the following amounts: 2009 2008 £ m £ m Cost at 1 April 230.7 176.1 Accumulated depreciation at 1 April ( 73.1) ( 55.1) Net book value at 1 April 157.6 121.0 Additions/ acquisitions 41.1 70.1 Cost of disposals/ transfers out ( 25.6) ( 15.8) Depreciation on disposals/ transfers out 25.4 10.9 Depreciation charge for the year ( 33.7) ( 28.9) Exchange differences 0.5 0.3 Net book value at 31 March 165.3 157.6 15 Investment property Freehold Freehold 2009 2008 £ m £ m Net book value at 1 April 9.5 9.9 Additions/ transfers in 10.5 - Disposals/ transfers out - ( 0.3) Exchange differences ( 0.2) - Fair value adjustments ( 1.8) ( 0.1) Net book value at 31 March 18.0 9.5 The investment property income earned by the Group, all of which was received under operating leases, amounted to £ 0.6m ( 2008: £ 0.5m) and is shown as revenue in the income statement. Direct operating expenses arising on the investment properties in the year amounted to £ 0.1m ( 2008: £ 0.1m). 16 Available- for- sale financial assets 2009 2008 £ m £ m At 1 April 10.5 3.2 Additions 1.3 8.5 Exchange differences 1.7 0.5 Net losses transferred to equity ( 4.5) ( 1.7) At 31 March 9.0 10.5 Available- for- sale financial assets include the following: Listed securities 8.3 8.5Unlisted securities 0.7 2.0 9.0 10.5 The fair value of available- for- sale financial assets are recognised at quoted prices in active markets.
Notes to financial statements for the year ended 31 March 2009 17 Derivative financial instruments 2009 2008 £ m £ m Current portion: Foreign exchange fair value hedges 1.9 - Forward foreign exchange contracts - 0.6 1.9 0.6 Non- current portion: Foreign exchange fair value hedges 3.0 - Total derivative financial instruments 4.9 0.6 Foreign exchange fair value hedges The Group borrows funds in foreign currency to hedge any material foreign currency exposure of future income. The highly probable forecast income is expected to be received at various dates over the next 27 months. No gains or losses were recognised in the period to 31 March 2009 ( 2008: £ nil). There were no ineffective portions to be recognised in the income statement arising from fair value hedges ( 2008: £ nil). The full fair value of a hedging derivative is classified as a non- current asset or liability if the remaining maturity of the hedged item is more than 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. Forward exchange contracts The Group enters into forward contracts to hedge its foreign currency exposure arising on a number of contracts where costs have been agreed to be paid in foreign currencies. The highly probable forecast transactions denominated in foreign currencies are expected to occur at various dates during the next 12 months. 18 Restricted financial assets Restricted cash deposits 4.4 3.4 £ 4.0m relates to a cash deposit held in relation to rectification works at a former site, the remaining £ 0.4m relates to short- term bank deposits held as collateral in relation to specific construction projects. In all cases it is a contractual requirement that permission from third parties is obtained to withdraw these monies. The Directors consider the carrying amount of the restricted cash deposits to be at fair value. The restricted cash deposit at 31 March 2008 related to cash collateral deposits held in the Group's name with surety companies in relation to specific construction projects. 19 Inventories Development land and work in progress 217.6 228.5 Raw materials and consumables 27.9 22.3 Finished goods and goods for resale 5.1 2.4 250.6 253.2 Development land and work in progress at 31 March 2009 includes assets to a value of £ 170.4m ( 2008: £ 170.8m) expected to be consumed after more than one year. Development land and work in progress at 31 March 2009 includes capitalised specific borrowing costs attributable to qualifying assets of £ 5.8m ( 2008: £ 0.9m). Inventories carried at fair value less costs to sell at 31 March 2009 had a carrying value of £ 17.5m ( 2008: £ nil).