The Christie Foundation Trust Annual Report and Accounts 2021-22

Consolidated Accounts of The Christie NHS Foundation Trust 2021-2022

16. Borrowings

All Borrowings of The Christie NHS Foundation Trust Group are by The Christie NHS Foundation Trust. The Christie Charitable Fund does not have any Borrowings.

The Christie Pharmacy Limited has a £2m interest bearing loan from The Christie NHS Foundation Trust which is repayable over 5 years.

16.1 Borrowings

Group

Current

Non-current

2021-2022

2020-2021

2021-2022

2020-2021

£000

£000

£000

£000

Loan from ITFF

932

933

10,063 40,405

10,975 42,916

Loan from ITFF - Proton Beam Therapy Unit

2,846

2,866

Paterson Construction

48,406

0

0

5,953

Total

52,184

3,799

50,468

59,844

Loans from Independent Trust Financing Facility (ITFF)

16.1.1 The Trust had an application for a £21m loan to support its investment in new buildings to improve patient access to services approved by the Foundation Trust Financing Facility.

Repayment of the loan principle commenced from 15 September 2011 on a bi-annual basis. The loan is charged at a fixed interest rate of 4.2% per annum. The final repayment date is 15 March 2034.

16.1.2 The Trust had an application for a £52.5m loan to support its investment in the Proton Beam Therapy Unit approved by the Independent Trust Financing Facility.

The Trust had drawn down £51.401m of the loan as at 31 March 2022. Repayment of the loan commenced in November 2018 and is on a bi-annual basis. The loan is charged at a fixed interest rate of 2.14% per annum.

16.1.3 The Trust has entered into a Development Agreement with the University of Manchester and Cancer Research UK (CRUK) to redevelop the Paterson site and construct a state of the art research building. During the construction period the two partners will provide £85m towards the costs of construction in the form of a loan. The Trust has received £48.4m (2020-21 £5.953m) from the partners as at 31st March 2022. On completion of the new building in December 2022, the loan will be settled by the disposal of the leased space to the University. There is no interest payable on the loan. As at 31 March 2022, expenditure of £97m(2020-21 £45m) has been incurred on the construction of the Paterson building. This expenditure is disclosed as Assets under Construction in note 10.1.

16.2 Reconciliation of liabilities arising from financing activities

Group

DHSC Loans Other Loans

Total

£000

£000 5,953

£000

Carrying value at 1 April 2021

57,690

63,643

Cash movements: Financing cash flows - receipts of principal Financing cash flows - payments of principal Financing cash flows - payments of interest

42,453 (3,423) (1,448)

0

42,453

(3,423) (1,448)

0 0

Non-cash movements: Interest charge arising in year Carrying value at 31 March 2022

1,428

0

1,428

54,247

48,406

102,653

Group

DHSC Loans Other Loans

Total

£000

£000

£000

Carrying value at 1 April 2020

61,125

0

61,125

Cash movements: Financing cash flows - receipts of principal Financing cash flows - payments of principal Financing cash flows - payments of interest

5,953

0

5,953

(3,423) (1,533)

0 0

(3,423) (1,533)

Non-cash movements: Interest charge arising in year Carrying value at 31 March 2021

1,521

0

1,521

57,690

5,953

63,643

1 19 4