Annual Report and Accounts 2009

Notes to the Consolidated Financial Statements for the year to 31 December 2009

7. Finance costs

Finance costs from continuing operations are analysed as follows: 2009
£m
2008
£m
Interest on bank loans and overdrafts 46.5 72.5
Interest on debenture loans 62.6 55.4
Movement on interest rate derivatives (11.8) 10.8
  97.3 138.7
Unwinding of discount on land creditors and other payables 18.4 26.7
Notional net interest on pension liability (Note 22) 34.3 11.7
  150.0 177.1
Exceptional finance costs:
Bank loans and debenture fees and interest 23.1 10.5
  173.1 187.6

The 2009 exceptional finance costs include £5.5m in relation to the fair value of 57.8m warrants issued to the Group's lenders as part of the debt refinancing and £15.5m of one-off interest payments payable to the Group's lenders as a consequence of early repayment of a portion of the Group's debt, following the equity raise. The exceptional finance costs in the prior year relate to the write off of the remaining unamortised bank loan and debenture fees relating to the Group's financing arrangements which were in place throughout 2008. The amortisation of these fees was accelerated due to the refinancing of the Group's debt arrangements on 7 April 2009.