Notes to the Group financial statements

for the year ended 31 March 2009

32. Notes to the Group cash flow statement

 

2009


US$m

2008
(Restated)
(Note 2)
US$m

(a) Cash generated from operations

 

 

Profit after tax

494

430

Adjustments for:

 

 

Tax expense

84

91

Share of post-tax profits of associates

(42)

(50)

Net financing costs

77

154

Operating profit

613

625

Loss on sale of property, plant and equipment

6

3

Loss on sale of other intangible assets

3

Loss on disposal of subsidiaries

3

Depreciation and amortisation

420

406

Goodwill adjustment

1

2

Write down of investment in associate

5

Charge in respect of equity incentive plans

52

66

Change in working capital (note 32(b))

7

23

Exceptional items included in working capital

(8)

9

Cash generated from operations

1,102

1,134

 

 

 

 

 

 

(b) Change in working capital

 

 

Increase in inventories

(2)

Decrease/(increase) in receivables

24

(51)

(Decrease)/increase in payables

(11)

79

Difference between pension contributions paid and amounts recognised in Group income statement

(4)

(5)

Change in working capital

7

23

 

 

 

 

 

 

(c) Interest paid

 

 

Interest paid on bonds, bank loans and overdrafts

155

166

Interest element of finance lease rental payments

2

2

Total interest paid

157

168

 

 

 

 

 

 

 

 

 

(d) Purchase of other intangible assets

 

 

Databases

153

148

Internally generated software

38

42

Internal use software

39

32

Purchase of other intangible assets

230

222

 

 

 

 

 

 

(e) Acquisition of subsidiaries

 

 

Purchase of subsidiary undertakings (including acquisition expenses) (note 33(a))

(124)

(1,726)

Net cash acquired with subsidiary undertakings (note 33(a))

4

60

Deferred consideration settled on acquisitions made in previous years

(59)

(54)

Net cash outflow for acquisition of subsidiaries

(179)

(1,720)

 

 

 

 

 

 

(f) Disposal of subsidiaries

 

 

Proceeds of disposal of transaction processing activities in France (note 33(b))

191

Sale of other businesses (note 33(c))

6

Cash inflow from disposal of subsidiaries

191

6

 

 

 

 

 

 

(g) Financing

 

 

Debt due within one year:

 

 

Repayment of borrowings

(29)

(746)

New borrowings

29

Debt due after more than one year:

 

 

Repayment of borrowings

(249)

New borrowings

71

1,409

Net cash flow from debt financing

(207)

692

 

 

 

 

2009


US$m

2008
(Restated)
(Note 2)
US$m

(h) Analysis of cash and cash equivalents

 

 

Cash at bank and in hand

127

148

Short-term investments

2

3

Cash and cash equivalents in Group balance sheet

129

151

Bank overdrafts

(2)

(4)

Cash and cash equivalents in Group cash flow statement

127

147

Cash and cash equivalents held by:

 

 

Continuing operations

127

145

Discontinued operations

2

Cash and cash equivalents in Group cash flow statement

127

147

 

 

 

 

 

 

(i) Cash outflow in respect of exceptional items

 

 

Total exceptional items (note 8)

117

55

Working capital movements

8

(9)

Asset write-offs

(15)

(12)

(Losses)/gains in respect of associates

(5)

3

Loss on disposal of subsidiaries

(3)

Cash outflow in respect of exceptional items

102

37

 

 

 

 

 

 

(j) Reconciliation of cash generated from operations to operating cash flow (non-GAAP measure)

 

 

Cash generated from operations (note 32(a))

1,102

1,134

Purchase of property, plant and equipment

(75)

(99)

Purchase of other intangible assets (note 32(d))

(230)

(222)

Dividends received from associates

28

36

Net cash outflow from exceptional items (note 32(i))

102

37

Operating cash flow

927

886


(k) Major non-cash transactions

The Group did not enter into any new finance lease arrangements during the year (2008: US$nil). Finance lease obligations of Serasa at the date of acquisition in June 2007 were US$19m.

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