Net debt comprises borrowings, net of cash and short-term deposits and derivatives. As such, movements in net debt during the year are impacted by changes in liabilities from financing activities as detailed in the tables overleaf. The tables overleaf, along with the chart reconciling opening to closing net debt, should be read in conjunction with the consolidated statement of cash flows.

BorrowingsDerivatives
Bonds
£m
Bank and other term borrowings
£m
Lease liabilities
£m
in a fair value hedge
£m
at fair value through profit or loss
£m
Total liabilities from financing activities
£m
Derivatives in a cash flow hedge
£m
Cash and cash equivalents
£m
Net
debt
£m
At 31 March 2019(5,256.5)(2,544.6)327.182.6(7,391.4)(0.5)324.6(7,067.3)
Adjustment on initial application
of IFRS 16
(54.4)(54.4)(54.4)
At 1 April 2019(5,256.5)(2,544.6)(54.4)327.182.6(7,445.8)(0.5)324.6(7,121.7)
Non-cash movements:  
Inflation uplift on index-linked debt(58.2)(42.6)(100.8)(100.8)
Fair value movements(93.4)(2.0)57.8(4.7)(42.3)(1.7)(44.0)
Foreign exchange(9.5)(5.3)(14.8)(14.8)
Other(1.5)(6.5)(8.0)(8.0)
Cash flows used in financing activities:  
Receipts in respect of borrowing
and derivatives(1)
(651.1)(157.1)(808.2)808.2
Payments in respect of borrowings and derivatives(1)421.7109.51.710.82.2545.9(545.9)
Dividends paid(284.5)(284.5)
Exercise of share options –
purchase of shares
(2.8)(2.8)
Other(2.8)(2.8)
Changes arising from financing activities(392.0)(97.5)(4.8)68.6(2.5)(428.2)(1.7)(27.8)(457.7)
Cash flows used in investing activities(593.9)(593.9)
Cash flows generated from
operating activities
1.61.6810.3811.9
At 31 March 2020(5,648.5)(2,642.1)(57.6)395.780.1(7,872.4)(2.2)513.2(7,361.4)

Note:

(1)Where derivatives are in an economic hedge of borrowings, derivative cash flows are shown netted with the net payment or receipt being reported against the underlying borrowing cash flow to provide a more faithful representation of the substance of the transaction.

Summary of net debt movement

BorrowingsDerivatives
Bonds
£m
Bank and other term borrowings
£m
Lease liabilities
£m
in a fair value hedge
£m
at fair value through profit or loss
£m
Total liabilities from financing activities
£m
Derivatives in a cash flow hedge
£m
Cash and cash equivalents
£m
Net debt
£m
At 31 March 2018(5,306.6)(2,593.1)431.5103.0(7,365.2)497.4(6,867.8)
Adjustment on initial application of IFRS 90.90.9(0.9)
At 1 April 2018(5,306.6)(2,593.1)431.5103.9(7,364.3)(0.9)497.4(6,867.8)
Non-cash movements:
Inflation uplift on index-linked debt(58.5)(39.8)(98.3)(98.3)
Fair value movements(33.9)(2.1)35.510.49.80.410.2
Foreign exchange(35.2)(2.4)(37.6)(37.6)
Other(1.3)(1.3)(1.3)
Cash flows used in financing
activities:
Receipts in respect of borrowing
and derivatives
(428.1)(107.5)(1.1)(31.7)(568.4)568.4
Payments in respect of borrowings and derivatives(1)(2)607.1200.3(138.8)668.6(668.6)
Dividends paid(274.4)(274.4)
Exercise of share options –
purchase of shares
(2.8)(2.8)
Changes arising from financing activities50.148.5(104.4)(21.3)(27.1)0.4(377.4)(404.1)
Cash flows used in investing activities(627.7)(627.7)
Cash flows generated from
operating activities
832.3832.3
At 31 March 2019(5,256.5)(2,544.6)327.182.6(7,391.4)(0.5)324.6(7,067.3)

Notes:

(1)Where derivatives are in an economic hedge of borrowings, derivative cash flows are shown netted with the net payment or receipt being reported against the underlying borrowing cash flow to provide a more faithful representation of the substance of the transaction.

(2)During the year ended 31 March 2019, a series of cross-currency interest rate derivatives in a fair value hedge relationship settled enabling repayment of foreign currency denominated bonds. The net sterling value received in respect of these derivatives £(138.8) million is shown as a negative payment reducing the overall value of 'payments in respect of borrowings and derivatives' to better reflect the net sterling cost to the company of redeeming the bonds.