Cash flow statements
for the year ended 31 December
| Group | Company | |||||
|---|---|---|---|---|---|---|
| Notes | 2008 £m |
2007 £m |
2008 £m |
2007 £m |
||
| Cash flows from operating activities | ||||||
| Cash generated from / (used in) operations | 27 | 65.7 | 45.1 | 15.1 | (35.1) | |
| Established businesses | 105.5 | 71.2 | 15.1 | (35.1) | ||
| Start-up businesses | (39.8) | (22.2) | – | – | ||
| Demerger costs | – | (3.9) | – | – | ||
| 65.7 | 45.1 | 15.1 | (35.1) | |||
| Finance costs paid | (26.0) | (22.4) | (8.1) | (1.7) | ||
| Finance income received | – | – | 3.6 | 1.0 | ||
| Income tax paid | (23.9) | (29.7) | (3.9) | – | ||
| Net cash generated from / (used in) operating activities | 15.8 | (7.0) | 6.7 | (35.8) | ||
| Cash flows from investing activities | ||||||
| Purchases of property, plant and equipment | 12 | (21.5) | (22.7) | – | – | |
| Proceeds from sale of property, plant and equipment | 3.6 | 5.9 | – | – | ||
| Purchases of intangible assets | 10 | (3.2) | (5.1) | – | – | |
| Acquisition of subsidiary (net of cash acquired) | – | (2.4) | – | – | ||
| Net cash used in investing activities | (21.1) | (24.3) | – | – | ||
| Net cash from operating and investing activities | ||||||
| Established businesses | 45.9 | 7.3 | 6.7 | (35.8) | ||
| Start-up businesses | (51.2) | (34.7) | – | – | ||
| Demerger costs | – | (3.9) | – | – | ||
| (5.3) | (31.3) | 6.7 | 35.8 | |||
| Cash flows from financing activities | ||||||
| (Repayment of) / proceeds from external bank borrowings | (9.1) | (70.4) | 6.5 | 47.1 | ||
| Net movement in funding from Provident Financial plc | – | 78.3 | – | – | ||
| Capital contribution from Provident Financial plc | – | 70.0 | – | – | ||
| Dividends paid to Company shareholders | 7 | (13.2) | (4.9) | (13.2) | (4.9) | |
| Purchase of shares by employee trust | (5.7) | – | (5.7) | – | ||
| Net cash (used in) / generated from financing activities | (28.0) | 73.0 | (12.4) | 42.2 | ||
| Net (decrease) / increase in cash and cash equivalents | (33.3) | 41.7 | (5.7) | 6.4 | ||
| Cash and cash equivalents at beginning of year | 88.8 | 44.5 | 6.4 | – | ||
| Exchange gains on cash and cash equivalents | 6.7 | 2.6 | – | – | ||
| Cash and cash equivalents at end of year | 15 | 62.2 | 88.8 | 0.7 | 6.4 | |
Cash and cash equivalents at end of year comprise: |
||||||
| Cash at bank and in hand | 57.0 | 48.9 | 0.7 | 0.4 | ||
| Short-term deposits | 5.2 | 39.9 | – | 6.0 | ||
| 15 | 62.2 | 88.8 | 0.7 | 6.4 | ||
Certain companies within the Group are required to keep certain cash and short-term deposits strictly segregated from the rest of the Group and these amounts are therefore not available to repay Group borrowings. At 31 December 2008 such cash and short-term deposits held by these companies amounted to £8.1m (2007: £36.8m).
The accounting policies and notes 1 to 30 are an integral part of these consolidated financial statements.