25. Analysis of changes in net funds

25. Analysis of changes in net funds

The table below presents an analysis of the movements in the Group’s net funds for the year ended 31 March 2026, showing the opening position, cash flow movements, other non-cash movements, and the closing position for each component of net funds.

During the period, the Group’s net funds position improved from a net debt of €63 million at 1 April 2025 to a net funds balance of €35 million at 31 March 2026. This reflects a total improvement of €98 million, primarily driven by positive net cash inflows of €115 million, partially offset by €17 million of non-cash movements.

The table separately presents movements in cash and cash equivalents, borrowings, and lease liabilities. Cash and cash equivalents decreased by €153 million over the period, while total debt (excluding bank overdrafts) reduced significantly due to net repayments of borrowings amounting to €245 million and cash reductions in lease liabilities of €23 million. Other non-cash movements, amounting to €17 million (2025: €52 million), relate to lease liabilities and reflect accounting adjustments such as remeasurements.

This analysis provides a clear and transparent breakdown of the factors contributing to the change in the Group’s net funding position over the period.