Notes to the Consolidated Financial Statements: Note 36
For the Year Ended 31 December 2007
36. Notes to the Cash Flow Statement
| Notes | 2007 £'000 |
2006 £'000 |
|
|---|---|---|---|
| Operating profit | 153,970 | 128,296 | |
| Adjustments for: | |||
| Depreciation of property and equipment | 18 | 9,066 | 9,113 |
| Amortisation of intangible assets | 17 | 104,957 | 86,656 |
| Impairment of goodwill | - | 515 | |
| Impairment of available for sale investments | 21 | 755 | - |
| Loss on disposal of property and equipment | 228 | 23 | |
| Operating cash flows before movements in working capital | 268,976 | 224,603 | |
| Decrease in inventories | 2,694 | 211 | |
| (Increase)/decrease in receivables | (11,985) | 9,866 | |
| Increase/(decrease) in payables | 17,449 | (15,185) | |
| Movement in other operating items | 2,026 | (137) | |
| Cash generated by operations | 279,160 | 219,358 |
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 a maturity of three months or less.
Adjusted cash generated by operations
| Notes | 2007 £'000 |
2006 £'000 |
|
|---|---|---|---|
| Cash generated by operations | 279,160 | 219,358 | |
| Restructuring costs | 7 | 7,672 | 7,203 |
| Adjusting items on a cash flow basis | 286,832 | 226,561 | |
| Accrued in prior year | 5,725 | 4,426 | |
| Accrued at year end | (5,450) | (5,725) | |
| Adjusted cash generated by operations | 287,107 | 225,262 | |
| Adjusted operating profit | 8 | 260,993 | 219,091 |
| 2007 % |
2006 % |
|
|---|---|---|
| Percentage of adjusted operating profit converted to adjusted cash generated by operations | 110 | 103 |
Analysis of Net Debt
| At 1 January 2007 £'000 |
Non-cash items £'000 |
Cash flow £'000 |
Exchange movement £'000 |
At 31 December 2007 £'000 |
|
|---|---|---|---|---|---|
| Cash at bank and in hand | 19,478 | - | 4,495 | - | 23,973 |
| Overdrafts | (728) | - | (6,339) | - | (7,067) |
| Net cash | 18,750 | - | (1,844) | - | 16,906 |
| Bank loans due in less than one year | (102,055) | - | 46,303 | (23) | (55,775) |
| Loan notes due in less than one year | (250) | (551) | 250 | - | (551) |
| Bank loans due in more than one year | (654,841) | (5,097) | (528,049) | (12,874) | (1,200,861) |
| Loan notes due in more than one year | - | (4,563) | - | - | (4,563) |
| Finance leases due in less than one year | (8) | - | 5 | - | (3) |
| Finance leases due in more than one year | (6) | - | 3 | - | (3) |
| (738,410) | (10,211) | (483,332) | (12,897) | (1,244,850) |