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
Notes 11-15
For the year ended 31 December 2010
- 11. Analysis of cash flows
- 12. Intangible assets
- 13. Property, plant and equipment
- 14. Interests in associates, joint ventures and other investments
- 15. Deferred tax
11. Analysis of cash flows
The following tables analyse the items included within the main cash flow headings on Consolidated cash flow statement.
Net cash from operating activities:
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Profit for the year | 661.0 | 506.9 | 513.9 |
| Taxation | 190.3 | 155.7 | 232.9 |
| Revaluation of financial instruments | (18.2) | (48.9) | 25.4 |
| Finance costs | 276.8 | 355.4 | 319.4 |
| Finance income | (81.7) | (150.4) | (169.6) |
| Share of results of associates | (55.2) | (57.0) | (46.0) |
| Operating profit | 973.0 | 761.7 | 876.0 |
| Adjustments for: | |||
| Non-cash share-based incentive plans (including share options) | 70.4 | 54.9 | 62.3 |
| Depreciation of property, plant and equipment | 184.9 | 195.3 | 149.6 |
| Impairment of goodwill | 10.0 | 44.3 | 84.1 |
| Goodwill write-down relating to utilisation of pre‑acquisition tax losses | – | – | 1.5 |
| Amortisation and impairment of acquired intangible assets | 170.5 | 172.6 | 78.4 |
| Amortisation of other intangible assets | 25.4 | 30.5 | 23.4 |
| Investment write-downs | 37.5 | 11.1 | 30.5 |
| Gains on disposal of investments | (4.1) | (31.1) | (3.4) |
| Gains on re-measurement of equity interest on acquisition of controlling interest | (13.7) | – | – |
| Losses on sale of property, plant and equipment | 0.7 | 0.4 | 1.9 |
| Operating cash flow before movements in working capital and provisions | 1,454.6 | 1,239.7 | 1,304.3 |
| (Increase)/decrease in inventories and work in progress | (46.3) | 12.4 | 65.6 |
| (Increase)/decrease in receivables | (850.8) | (90.0) | 492.6 |
| Increase/(decrease) in payables – short term | 1,135.7 | (51.3) | (628.9) |
| Increase/(decrease) in payables – long term | 10.3 | 25.5 | (23.1) |
| (Decrease)/increase in provisions | (23.4) | 1.3 | (15.5) |
| Cash generated by operations | 1,680.1 | 1,137.6 | 1,195.0 |
| Corporation and overseas tax paid | (207.4) | (216.6) | (182.5) |
| Interest and similar charges paid | (219.7) | (248.7) | (269.2) |
| Interest received | 50.7 | 99.6 | 133.0 |
| Investment income | 4.2 | 1.4 | 1.8 |
| Dividends from associates | 53.3 | 45.5 | 44.6 |
| Net cash inflow from operating activities | 1,361.2 | 818.8 | 922.7 |
Acquisitions and disposals:
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Initial cash consideration | (138.6) | (35.4) | (872.2) |
| Cash and cash equivalents acquired (net) | 57.0 | 1.3 | (6.1) |
| Earnout payments | (113.3) | (81.5) | (67.8) |
| Loan note redemptions | (5.1) | – | (2.6) |
| Purchase of other investments (including associates) | (23.8) | (53.3) | (91.7) |
| Proceeds on disposal of investments | 23.7 | 50.5 | 11.0 |
| Acquisitions and disposals | (200.1) | (118.4) | (1,029.4) |
| Cash consideration for non-controlling interests | (15.1) | (26.4) | (19.7) |
| Net cash outflow | (215.2) | (144.8) | (1,049.1) |
Share repurchases and buy-backs:
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Purchase of own shares by ESOP Trust | (46.4) | – | – |
| Share cancellations (excluding brokerage fees) | – | – | (112.2) |
| Shares purchased into treasury | – | (9.5) | – |
| Proceeds on disposal of treasury shares | – | – | 6.9 |
| Net cash outflow | (46.4) | (9.5) | (105.3) |
Net increase/(decrease) in borrowings:
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Increase/(decrease) in drawings on bank loans | 19.8 | (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 |
| Net cash inflow/(outflow) | 19.8 | (426.3) | 810.4 |
Cash and cash equivalents:
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Cash at bank and in hand | 1,877.1 | 1,570.5 | 2,485.9 |
| Short-term bank deposits | 88.1 | 96.2 | 86.6 |
| Overdrafts1 | (255.4) | (720.7) | (1,254.4) |
| Cash and cash equivalents at end of year | 1,709.8 | 946.0 | 1,318.1 |
- 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.