Given that the roll out of sites requires significant capital, the impact of this change was to increase the free cash generation of the business and drive a large degearing
of its balance sheet.
Tom Morris-Jones, corporate finance director at brokers Arden Partners, said: "We are still in some very difficult times but there are signs, albeit small ones, that we may be heading in the right direction and the degearing
process for both consumers and companies may well be completed sufficiently enough for final demand to grow at a sensible pace again.
Bob Hale, head of manufacturing at Grant Thornton, said, "We have witnessed a trend of degearing
and increasingly effective asset management within the manufacturing sector in recent years, as UK manufacturers improve their balance sheets and increase international competitiveness through global supply chain development.
At the corporate level, UEM Land has completed its degearing
exercise on 1 June 2007.
The recent cash sale of Japanese and Spanish assets demonstrated that BT was prepared to prioritise degearing
its balance sheet ahead of other plans.
as well as estimated degearing
of 3%) implies a return excluding any
5x, through a mix of free cash flow degearing
balance sheets and non-core asset disposals.
that it permits the temporary degearing
of the fund without exposing SCD