Group Cash Flow

for the year ended 31 December 2011  
  Restated
2011
£m
2010
£m
Cash flows from operating activities    
Profit for the year from continuing operations 203.7 213.6
Adjustments for:    
Depreciation 43.6 44.8
(Reversal of impairment)/impairment of property, plant and equipment (2.5) 3.4
Amortisation 36.4 11.4
Impairment of intangible assets - 0.4
Loss/(gain) on sale of property, plant and equipment 0.2 (2.9)
Loss on disposal of investments - 0.1
Financial income (17.2) (25.7)
Financial expense 36.2 28.7
Net finance income relating to defined benefit pension scheme (6.2) -
Equity-settled share-based payment expenses 8.9 5.5
Income tax expense 97.7 92.5
Increase in trade and other receivables (45.1) (13.3)
Increase in inventories (35.7) (7.8)
Increase in trade and other payables 67.8 53.3
Decrease in provisions and employee benefits (25.3) (26.0)
Cash generated from the operations 362.5 378.0
Income taxes paid (90.9) (56.3)
  271.6 321.7
CCI investigation costs (2.1) (4.3)
Refund of EU fine * - 5.4
Additional pension scheme funding (52.9) (16.8)
Special contribution to the UK Pension Fund - (48.6)
Net cash from operating activities 216.6 257.4
Cash flows from investing activities    
Interest received 3.3 5.2
Proceeds from sale of property, plant and equipment 2.8 7.1
Sale of investments 1.1 0.8
Purchase of investments (0.7) (0.3)
Settlement of transactional derivatives 3.0 4.0
Settlement of currency derivatives hedging balance sheet 5.6 (2.7)
Income from discontinued business (Polypipe) * - 7.4
Acquisitions of controlling interests (8.9) (117.4)
Acquisition of property, plant and equipment (52.1) (45.8)
Capitalised non-acquired intangibles (6.8) (5.0)
Net cash from investing activities (52.7) (146.7)
Cash flows from financing activities    
Interest paid (20.2) (20.7)
Investment in pension partnership by UK Pension Fund - 48.6
Acquisition of non-controlling interests - (12.4)
Payment to non-controlling interest (4.4) -
Purchase of own shares (7.8) (29.5)
Proceeds from the issue of share capital for employee share schemes 1.2 1.6
Net (repayment)/drawdown of borrowings (16.0) 14.2
Dividends paid to non-controlling interest - (0.5)
Dividends paid to equity shareholders (88.8) (70.9)
Net cash from financing activities (136.0) (69.6)
Net increase in cash and cash equivalents 27.9 41.1
Cash and cash equivalents at the start of the year 120.4 75.7
Effect of exchange rate fluctuations on cash held (0.8) 3.6
Cash and cash equivalents at the end of the year** 147.5 120.4
     

* Representing profit in 2010 from operations discontinued in prior years
** Net of bank overdrafts of £0.4m (2010: £2.5m)

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