2000
£m

Restated
1999
£m

Net cash inflow from operating activities

A

479

359

Dividends received from joint ventures

13

6

Returns on investments and servicing of finance

B

(76)

(32)

Taxation paid

(25)

(38)

Capital expenditure and financial investment

(253)

(199)

Acquisitions and disposals

D

(53)

(666)

Equity dividends paid

(74)

(88)

Cash inflow/(outflow) before use of liquid resources and financing

11

(658)

Management of liquid resources

E

324

261

Financing

F

(360)

622

(Decrease)/increase in cash

(25)

225

Reconciliation of net cash flow to movement in net funds

(Decrease)/increase in cash

(25)

225

Cash (inflow) from (decrease) in liquid resources

(324)

(261)

Cash outflow/(inflow) from decrease/(increase) in borrowings

370

(618)

Change in net funds resulting from cash flows

21

(654)

Borrowings of businesses acquired

—

(332)

Zero-coupon bonds 2005/2007 (9.0% interest accretion)

(3)

(3 )

Exchange adjustments

(14)

(7)

Movement in net funds

4

(996)

Net (debt)/funds at January 1

(694)

302

Net debt at December 31

(690)

(694)

At
January 1,
2000
£m

Cash
flow
£m

Exchange
adjustments
£m

Other
non-cash
changes
£m

At
December 31,
2000
£m

Cash at bank and in hand

521

(24)

1

—

498

Overdrafts

(100)

(1)

(2)

—

(103)

Short-term deposits and investments

464

(324)

2

—

142

Other borrowings due within one year

(301)

147

(6)

—

(160)

Borrowings due after one year

(1,174)

215

(3)

(3)

(965)

Finance leases

(104)

8

(6)

—

(102)

(694)

21

(14)

(3)

(690)

2000
£m

Restated
1999
£m

Reconciliation of operating profit to operating cash flows

Operating profit

290

376

Amortisation of intangible assets (note 9)

60

19

Depreciation of tangible fixed assets (note 3)

178

105

(Profit)/loss on disposals of tangible fixed assets and investments

(3)

4

Increase/(decrease) in provisions for liabilities and charges

49

(34)

Decrease in stocks

62

39

Increase in debtors

(374)

(127)

Increase/(decrease) in creditors

217

(23)

A Net cash inflow from operating activities

479

359

Returns on investments and servicing of finance

Interest received

26

26

Interest paid

(96)

(51)

Interest element of finance lease payments

(6)

(7)

B Net cash outflow for returns on investments and servicing of finance

(76)

(32)

Capital expenditure and financial investment

Additions to unlisted investments

(2)

—

Additions to certification costs

(10)

—

Purchases of tangible fixed assets

(292)

(381)

Disposals of tangible fixed assets

51

187

Acquisition of own shares by trust

—

(5)

C Net cash outflow for capital expenditure and financial investment

(253)

(199)

Acquisitions and disposals

Acquisitions of businesses (note 30)

(45)

(653)

Disposals of businesses (note 31)

(5)

14

Investments in joint ventures

(13)

(27)

Loan repayments from joint ventures

10

—

D  Net cash outflow for acquisitions and disposals

(53)

(666)

Management of liquid resources

Decrease in short-term deposits

327

262

Increase in government securities and corporate bonds

(3)

(1 )

E Net cash inflow from management of liquid resources

324

261

Financing

Borrowings due within one year 
– repayment of loans

(147)

—

– increase in loans

—

88

Borrowings due after one year   
– repayment of loans

(725)

(196)

– increase in loans

510

734

Capital element of finance lease payments

(8)

(8)

Net cash (outflow)/inflow from (decrease)/increase in borrowings

(370)

618

Issue of ordinary shares

10

4

F Net cash (outflow)/inflow from financing

(360)

622