The percentage that borrowings represent to shareholders funds (less intangibles) at the end of the latest and preceding financial period is shown for all companies except investment trusts, banks and insurance companies.
For the purpose of gross gearing, debt is taken to be total borrowings, including finance leases and convertible debt, and without any deduction in respect of cash assets. Where the difference is substantial (i.e. the greater of 10 percentage points or 10% of the gross, whichever is the larger amount) gearing net of cash is also shown.
Shareholders funds are defined as follows:
Ordinary share capital+ Preference share capital + Reserves= Shareholders funds
The expression “neg. equity” indicates that there are actual borrowings but a negative equity base.
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