Consolidated cash flow statement

for the year ended 31 December 2007

Note		Year ended 31 December 2007 £m	Year ended 31 December 2006 £m
	Cash flows from operating activities
	Profit for the year	529	477
	Adjustments for:
9	Tax expense	(46)	147
4/5	Net finance costs	324	274
15	Share of profit of joint ventures and associates	(198)	(214)
13/14	Depreciation of property, plant and equipment and amortisation of intangible assets	320	273
3	(Profit)/loss on sale of property, plant and equipment	(2)	5
8	Exceptional gains and losses before tax	(233)	(55)
8	Specific IAS 39 mark to market movements	342	(64)
	Other non-cash movements	(5)	(42)
	Decrease in provisions	(38)	(9)
	Decrease in finance lease receivables	35	14
	Proceeds from sale of property, plant and equipment	7	–
	Other cash movements	9	(7)
	Dividends received from joint ventures and associates	145	113
	Purchase of property, plant and equipment – maintenance	(71)	(128)
	Net purchase of intangible assets	(48)	–
	Operating cash flows before movements in working capital	1,070	784
	Increase in inventories	(2)	(18)
	(Increase)/decrease in trade and other receivables	(88)	22
	Increase/(decrease) in trade and other payables	42	(28)
	Decrease in assets held for trading	44	9
	Cash generated from operations	1,066	769
	Taxes paid	(101)	(57)
	Interest paid	(374)	(293)
	Interest received	62	37
	Free cash flow	653	456
	Cash flows relating to exceptional items:
	Receipt from TXU administrators – exceptional	–	14
	Receipt of compensation for breach of contract – exceptional	–	5
	Net cash inflow from operating activities	653	475
	Cash flows from investing activities
	Purchase of property, plant and equipment – growth	(160)	(142)
	Government grants received	1	–
31	Acquisitions (net of cash acquired), and increase in stake, of subsidiaries	(778)	(650)
31	Acquisitions of joint ventures, associates and investments	(13)	(64)
	Investments in (net of returns from) joint ventures, associates and investments	(1)	24
	Proceeds from partial disposal of UK subsidiaries	168	–
	Proceeds from disposal of investments	250	1
	Net cash outflow from investing activities	(533)	(831)
	Cash flows from financing activities
10	Dividends paid	(160)	(67)
	Proceeds from share issue	13	15
	Proceeds from new loans and bonds	616	1,340
	Repayment of loans and bonds	(423)	(495)
	Funding from minority interests	63	7
	Funding repaid to minority interests	(29)	(4)
	Distributions paid to minority interests	(35)	(54)
	Net cash inflow from financing activities	45	742
	Net increase in cash and cash equivalents	165	386
	Cash and cash equivalents at beginning of the year	980	620
	Effect of foreign exchange rate changes thereon	16	(26)
23	Cash and cash equivalents at end of the year	1,161	980

[ Back to top ]