Consolidated Statement of Cash Flows
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Enhancing Productivity
| Note | 2009 £m |
2008 £m |
|
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit after tax | 42.6 | 81.1 | |
| Adjustments for: | |||
| Tax | 10 | 11.6 | 25.0 |
| Profit on disposal of businesses | 26 | (0.1) | (0.3) |
| Finance costs | 9 | 20.3 | 15.7 |
| Financial income | 9 | (5.9) | (7.8) |
| Depreciation | 15 | 14.3 | 10.4 |
| Amortisation of intangible assets | 14 | 13.1 | 7.7 |
| (Gain)/loss on sale of property, plant and equipment | 6 | (0.3) | 0.1 |
| Equity-settled share-based payment (credit)/charge | 25 | (0.4) | 1.8 |
| Operating profit before changes in working capital and provisions | 95.2 | 133.7 | |
| Decrease in trade and other receivables | 31.0 | 7.8 | |
| Decrease/(increase) in inventories | 38.1 | (10.1) | |
| Decrease in trade and other payables | (42.9) | (1.4) | |
| Decrease in provisions and retirement benefit obligations | (3.2) | (6.9) | |
| Corporation tax paid | (16.7) | (24.0) | |
| Net cash from operating activities | 101.5 | 99.1 | |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment | (14.2) | (21.9) | |
| Proceeds from sale of property, plant and equipment | 1.5 | 0.9 | |
| Acquisition of businesses, net of cash acquired | 29 | (28.7) | (87.2) |
| Acquisition of an associate undertaking | 29 | – | (0.6) |
| Proceeds from disposal of businesses | 0.1 | 1.5 | |
| Interest received | 0.4 | 1.6 | |
| Net cash flows used in investing activities | (40.9) | (105.7) | |
| Cash flows from financing activities | |||
| Interest paid | (11.2) | (10.1) | |
| Dividends paid | 11 | (27.0) | (25.0) |
| Share options exercised from shares held by Employee Benefit Trust | – | 0.1 | |
| Share options exercised from treasury shares | 0.4 | 0.2 | |
| Purchase of own shares by Employee Benefit Trust | – | (0.2) | |
| Purchase of own shares – treasury shares | – | (9.3) | |
| Proceeds from borrowings | 99.0 | 50.0 | |
| Repayment of borrowings | (142.0) | – | |
| Net cash flows (used in)/generated by financing activities | (80.8) | 5.7 | |
| Net decrease in cash and cash equivalents | (20.2) | (0.9) | |
| Cash and cash equivalents at beginning of year | 54.8 | 47.4 | |
| Effect of foreign exchange rate changes | (0.9) | 8.3 | |
| Cash and cash equivalents at end of year | 18 | 33.7 | 54.8 |
Reconciliation of changes in cash and cash equivalents to movements in net debt
| Note | 2009 £m |
2008 £m |
|
|---|---|---|---|
| Net decrease in cash and cash equivalents | (20.2) | (0.9) | |
| Proceeds from borrowings | (99.0) | (50.0) | |
| Repayment of borrowings | 142.0 | – | |
| Effect of foreign exchange rate changes | 15.4 | (33.9) | |
| Movement in net debt | 38.2 | (84.8) | |
| Net debt at start of year | 19 | (162.1) | (77.3) |
| Net debt at end of year | 19 | (123.9) | (162.1) |
For the year ended 31 December 2009