Notes to the consolidated financial statements - analysis of items in the primary statements
27. Consolidated cash flow statement
(a) Cash flow from operating activities – discontinued operations
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Operating profit | – | 13 | 35 |
| Adjustments for: | |||
| Changes in working capital, provisions and pensions | – | (21) | (25) |
| Cash flow relating to discontinued operations | – | (8) | 10 |
(b) Cash flow from investing activities – discontinued operations
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| Disposal proceeds (i) | – | 1,617 | 3,064 |
| Tax arising on disposal | – | (564) | – |
| Other investing activities | – | (4) | (14) |
| Cash flow relating to discontinued operations | – | 1,049 | 3,050 |
- (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
| 2010 £m | 2009 £m | 2008 £m |
|
|---|---|---|---|
| (Decrease)/increase in cash and cash equivalents | (28) | 538 | (1,450) |
| Decrease in financial investments | (805) | (99) | (45) |
| Decrease/(increase) in borrowings and related derivatives | 499 | (1,641) | (1,589) |
| Cash paid to shareholders under B share scheme | – | – | 26 |
| Net interest paid on the components of net debt | 999 | 956 | 694 |
| Change in net debt resulting from cash flows | 665 | (246) | (2,364) |
| Changes in fair value of financial assets and liabilities and exchange movements | 865 | (3,625) | (133) |
| Net interest charge on the components of net debt | (996) | (1,161) | (901) |
| Borrowings of subsidiary undertaking acquired | – | – | (2,446) |
| Other non-cash movements | – | – | (9) |
| Movement in net debt (net of related derivative financial instruments) in the year | 534 | (5,032) | (5,853) |
| Net debt (net of related derivative financial instruments) at start of year | (22,673) | (17,641) | (11,788) |
| Net debt (net of related derivative financial instruments) at end of year | (22,139) | (22,673) | (17,641) |
(d) Analysis of changes in net debt
| Cash and cash equivalents £m | Bank overdrafts £m | Net cash and cash equivalents £m | Financial investments £m | Borrowings £m | Derivatives £m | Total(i) £m |
|||
|---|---|---|---|---|---|---|---|---|---|
| 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) | ||
| Cash flow | (16) | (12) | (28) | (826) | 2,079 | (560) | 665 | ||
| Fair value gains and losses and exchange movements | (1) | – | (1) | 2 | 644 | 220 | 865 | ||
| Interest charges | – | – | – | 24 | (1,042) | 22 | (996) | ||
| At 31 March 2010 | 720 | (29) | 691 | 1,397 | (25,095) | 868 | (22,139) | ||
| Balances at 31 March 2010 comprise: | |||||||||
| Non-current assets | – | – | – | – | – | 1,494 | 1,494 | ||
| Current assets | 720 | – | 720 | 1,397 | – | 248 | 2,365 | ||
| Current liabilities | – | (29) | (29) | – | (2,777) | (212) | (3,018) | ||
| Non-current liabilities | – | – | – | – | (22,318) | (662) | (22,980) | ||
| 720 | (29) | 691 | 1,397 | (25,095) | 868 | (22,139) |
- (i)
- Includes accrued interest at 31 March 2010 of £232m (2009: £258m).