Section image

Cherries
oil on canvas
22 x 20 in
1981

Penny Machines
oil on canvas
23¾ x 29¾ in
1961

Stack of Books
oil on canvas
30 x 24 in
n.d.

Seven Suckers
oil on canvas
19 x 23 in
1970

Twin Jackpots
oil on canvas
30 x 46 in
1962

Ties
oil on canvas
20 x 26 in
1980

Cake Slices
oil on canvas
20 x 16 in
n.d.

Notes 11 - 15

11. Analysis of cash flows

The following tables analyse the items included within the main cash flow headings in the Consolidated cash flow statement.

Net cash from operating activities:      
  2009
£m
2008
£m
2007
£m
Profit for the year 506.9 513.9 515.1
Taxation 155.7 232.9 204.3
Revaluation of financial instruments (48.9) 25.4 16.0
Finance costs 355.4 319.4 250.1
Finance income (150.4) (169.6) (139.4)
Share of results of associates (57.0) (46.0) (41.4)
Operating profit 761.7 876.0 804.7
Adjustments for:      
Non-cash share-based incentive plans (including share options) 54.9 62.3 62.4
Depreciation of property, plant and equipment 195.3 149.6 126.3
Impairment of goodwill 44.3 84.1 44.1
Goodwill write-down relating to utilisation of pre‑acquisition tax losses 1.5 1.7
Amortisation and impairment of acquired intangible assets 172.6 78.4 40.3
Amortisation of other intangible assets 30.5 23.4 18.1
Investment write-downs 11.1 30.5
Gains on disposal of investments (31.1) (3.4) (3.4)
Losses on sale of property, plant and equipment 0.4 1.9 1.0
Operating cash flow before movements in working capital and provisions 1,239.7 1,304.3 1,095.2
Decrease in inventories and work in progress 12.4 65.6 29.4
(Increase)/decrease in receivables (90.0) 492.6 (886.7)
(Decrease)/increase in payables – short term (51.3) (628.9) 897.6
Increase/(decrease) in payables – long term 25.5 (23.1) 7.6
Increase/(decrease) in provisions 1.3 (15.5) (22.5)
Cash generated by operations 1,137.6 1,195.0 1,120.6
Corporation and overseas tax paid (216.6) (182.5) (151.0)
Interest and similar charges paid (248.7) (269.2) (212.0)
Interest received 99.6 133.0 102.6
Investment income 1.4 1.8 3.1
Dividends from associates 45.5 44.6 28.0
Net cash inflow from operating activities 818.8 922.7 891.3
Acquisitions and disposals:      
  2009
£m
2008
£m
2007
£m
Initial cash consideration (61.8) (891.9) (520.4)
Cash and cash equivalents acquired (net) 1.3 (6.1) 60.5
Earnout payments (81.5) (67.8) (93.9)
Loan note redemptions (2.6) (2.1)
Purchase of other investments (including associates) (53.3) (91.7) (128.0)
Proceeds on disposal of investments 50.5 11.0 9.1
Net cash outflow (144.8) (1,049.1) (674.8)
Share repurchases and buy-backs:      
  2009
£m
2008
£m
2007
£m
Share cancellations (excluding brokerage fees) (112.2) (402.7)
Shares purchased into treasury (9.5) (12.7)
Proceeds on disposal of treasury shares 6.9
Net cash outflow (9.5) (105.3) (415.4)
Net (decrease)/increase in borrowings:      
  2009
£m
2008
£m
2007
£m
(Decrease)/increase in drawings on bank loans (1,068.0) 1,273.3
Proceeds from issue of £450 million convertible bonds 450.0
Proceeds from issue of $600 million bonds 367.4
Repayment of TNS debt (175.7) (395.7)
Repayment of €650 million bonds (515.1)
Repayment of $100 million bonds (50.5)
Repayment of $150 million convertible debt (96.2)
Proceeds from issue of €750 million bonds 594.6
Repayment of £450 million bonds (450.0)
Proceeds from issue of £400 million bonds 400.0
Proceeds from issue of £200 million bonds 200.0
Proceeds from issue of €500 million bonds 348.9
Net cash (outflow)/inflow (426.3) 810.4 498.9
Cash and cash equivalents:      
  2009
£m
2008
£m
2007
£m
Cash at bank and in hand 1,570.5 2,485.9 1,957.4
Short-term bank deposits 96.2 86.6 82.8
Overdrafts1 (720.7) (1,254.4) (977.9)
Cash and cash equivalents at end of year 946.0 1,318.1 1,062.3
Note
1
Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.

The Group considers that the carrying amount of cash and cash equivalents approximates their fair value.

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