Notes	2005 £m		2004 £m		2003 £m
Net cash inflow from operating activities before exceptional items	27(a)	3,103		3,058		3,154
Expenditure relating to exceptional items		(194)		(248)		(328)
Net cash inflow from operating activities		2,909		2,810		2,826
Dividends from joint ventures		5		8		11
Returns on investments and servicing of finance
Interest received and similar income		75		137		56
Interest paid and similar charges		(830)		(823)		(957)
Dividends paid to minority interests		(3)		(6)		(11)
Net cash outflow for returns on investments and servicing of finance		(758)		(692)		(912)
Taxation
Net corporate tax paid		(150)		(18)		(112)
Capital expenditure and financial investment
Net payments to acquire intangible and tangible fixed assets		(1,354)		(1,400)		(1,518)
Receipts from disposals of tangible fixed assets		92		146		111
Net cash outflow for capital expenditure and financial investment		(1,262)		(1,254)		(1,407)
Acquisitions and disposals
Payments to acquire Group undertakings		(1,151)		–		–
Less: Cash acquired with Group undertaking		29		–		–
	27(c)	(1,122)		–		–
Payments to acquire investments		(16)		(26)		(165)
Receipts from disposals of investments	27(b)	8		33		328
Net cash (outflow)/inflow for acquisitions and disposals		(1,130)		7		163
Equity dividends paid		(628)		(560)		(571)
Net cash (outflow)/inflow before the management of liquid resources and  financing		(1,014)		301		(2)
Management of liquid resources
Increase in short-term deposits		(54)		(48)		(138)
Net cash outflow from the management of liquid resources	27(d),(e)	(54)		(48)		(138)
Financing
Issue of ordinary shares		13		38		4
Payments to repurchase ordinary shares		–		–		(97)
Termination of cross currency swaps	27(d)	–		148		–
Increase/(decrease) in borrowings	27(d),(e)	1,068		(426)		267
Net cash inflow/(outflow) from financing		1,081		(240)		174
Movement in cash and overdrafts	27(d),(e)	13		13		34

Included in the cash flows above are cash flows for discontinued operations as set out below:

	2005 £m	2004 £m	2003 £m
Net cash inflow/(outflow) from operating activities	–	5	(70)
Net cash outflow for returns on investments and servicing of finance	–	(2)	(14)
Net cash (outflow)/inflow for taxation	–	–	(1)
Net cash outflow for capital expenditure and financial investment	–	(1)	(123)
Net cash outflow for acquisitions and disposals	–	–	(3)
Net cash inflow/(outflow) before the management of liquid resources and financing	–	2	(211)

Liquid resources comprise money market deposits, equities and gilts.

The notes form part of the Accounts.

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