- Financial Statements
Notes to the Consolidated Financial Statements
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for the year to 31 December 2007
36. Notes to the cash flow statement
| 2007 £m |
2006 £m |
|
| Profit on ordinary activities before finance costs | 92.6 | 469.8 |
| Adjustments for: | ||
| Amortisation of brands | 33.7 | – |
| Amortisation of software development costs | 2.0 | – |
| Depreciation of plant and equipment | 8.3 | 7.7 |
| Share-based payment charge | 0.6 | 6.1 |
| Gain on disposal of property and plant | (5.7) | (9.1) |
| Share of joint ventures’ operating profit | (23.4) | (22.1) |
| Increase in provisions | 38.6 | 8.5 |
| Operating cash flows before movements in working capital | 146.7 | 460.9 |
| Increase in inventories | (26.3) | (347.5) |
| Decrease/(increase) in receivables | 38.9 | (37.2) |
| (Decrease)/increase in payables | (81.6) | 174.4 |
| Pension contributions in excess of charge | (30.0) | (27.3) |
| Cash generated by operations | 47.7 | 223.3 |
| Income taxes paid | (127.3) | (95.2) |
| Interest paid | (83.7) | (71.1) |
| Net cash (used in)/from operating activities | (163.3) | 57.0 |
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-term highly liquid investments with an original maturity of three months or less.
| 2007 £m |
2006 £m |
|
| Net debt | ||
| Cash and cash equivalents | 130.0 | 236.5 |
| Bank overdrafts and bank loans | (720.7) | (14.7) |
| Debenture loans | (824.7) | (613.1) |
| Net debt | (1,415.4) | (391.3) |