Cash flows

Net cash inflow for the year was £550 million, reducing net borrowings, including the Convertible Bond, to £56 million at 31 March 2006 (2005: £545 million).

During the year, capital was returned to shareholders through the payment of £245 million by way of a special dividend of 40.7p per share and a further £222 million of on-market share buy-backs, as approved by shareholders at an Extraordinary General Meeting following the 2005 Annual General Meeting.