Notes to the consolidated financial statements
27. Consolidated cash flow statement
(a) Cash flow from operating activities – discontinued operations
| 2009 £m |
2008 £m |
2007 £m |
|
|---|---|---|---|
| Operating profit | 13 | 35 | 62 |
| Adjustments for: | |||
| Exceptional items | – | – | 55 |
| Depreciation and amortisation | – | – | 72 |
| Changes in working capital, provisions and pensions | (21) | (25) | (8) |
| Cash flow relating to discontinued operations | (8) | 10 | 181 |
(b) Cash flow from investing activities – discontinued operations
| 2009 £m |
2008 £m |
2007 £m |
|
|---|---|---|---|
| Disposal proceeds (i) | 1,617 | 3,064 | 27 |
| Tax arising on disposal | (564) | – | – |
| Acquisition of subsidiaries, net of cash acquired | – | – | (85) |
| Other investing activities | (4) | (14) | (47) |
| Cash flow relating to discontinued operations | 1,049 | 3,050 | (105) |
- (i)
- Disposal proceeds are in respect of the sale of assets and liabilities classified as held for sale.
(c) Reconciliation of net cash flow to movement in net debt
| 2009 £m |
2008 £m |
2007 £m |
|
|---|---|---|---|
| Movement in cash and cash equivalents | 538 | (1,450) | 175 |
| (Decrease)/increase in financial investments | (99) | (45) | 1,725 |
| Increase in borrowings and derivatives | (1,641) | (1,589) | (3,045) |
| Cash paid to shareholders under B share scheme | – | 26 | 26 |
| Net interest paid | 956 | 694 | 597 |
| Change in net debt resulting from cash flows | (246) | (2,364) | (522) |
| Changes in fair value of financial assets and liabilities and exchange movements | (3,625) | (133) | 331 |
| Net interest charge on the components of net debt | (1,161) | (901) | (655) |
| Borrowings of subsidiary undertaking acquired | – | (2,446) | (48) |
| Amounts reclassified to businesses held for sale | – | 17 | (42) |
| Other non-cash movements | – | (26) | (2) |
| Movement in net debt (net of related derivative financial instruments) in the year | (5,032) | (5,853) | (938) |
| Net debt at start of year | (17,641) | (11,788) | (10,850) |
| Net debt (net of related derivative financial instruments) at end of year | (22,673) | (17,641) | (11,788) |
(d) Analysis of changes in net debt
| Cash and cash equivalents £m |
Bank overdrafts £m |
Net cash and cash equivalents £m |
Financial investments(i) £m |
Borrowings(i) £m |
Derivatives(i) £m |
Total £m |
|
|---|---|---|---|---|---|---|---|
| At 31 March 2006 | 1,452 | (3) | 1,449 | 384 | (13,126) | 443 | (10,850) |
| Cash flow | 178 | (3) | 175 | 1,509 | (2,233) | 27 | (522) |
| Fair value gains and losses and exchange movements | (14) | – | (14) | (9) | 511 | (157) | 331 |
| Interest charges | – | – | – | 215 | (833) | (37) | (655) |
| Other non-cash movements | (23) | – | (23) | (1) | (30) | (38) | (92) |
| At 31 March 2007 | 1,593 | (6) | 1,587 | 2,098 | (15,711) | 238 | (11,788) |
| Cash flow | (1,446) | (4) | (1,450) | (251) | (729) | 66 | (2,364) |
| Fair value gains and losses and exchange movements | 4 | – | 4 | 4 | (990) | 849 | (133) |
| Interest charges | – | – | – | 211 | (1,066) | (46) | (901) |
| Acquisition of subsidiary undertaking | – | – | – | 33 | (2,479) | – | (2,446) |
| Other non-cash movements | 23 | – | 23 | – | (18) | (14) | (9) |
| At 31 March 2008 | 174 | (10) | 164 | 2,095 | (20,993) | 1,093 | (17,641) |
| Cash flow | 545 | (7) | 538 | (184) | (1,316) | 716 | (246) |
| Fair value gains and losses and exchange movements | 18 | – | 18 | 207 | (3,222) | (628) | (3,625) |
| Interest charges | – | – | – | 79 | (1,245) | 5 | (1,161) |
| At 31 March 2009 | 737 | (17) | 720 | 2,197 | (26,776) | 1,186 | (22,673) |
- (i)
- Includes interest. Accrued interest at 31 March 2009 was £258m (2008: £225m).