Consolidated Cash Flow Statement

As at 31 December 2005


  Notes 2005
£m
2004
£m
Cash flows from operating activities       
Profit for the year   9.8 7.7
Adjustments for      
Taxation   7.7 6.5
Depreciation   8.9 9.4
Amortisation of intangibles   1.2 0.8
Goodwill impairment   - 0.7
Negative goodwill   - (0.6)
Loss on disposal of property, plant and equipment   (1.6) (1.0)
Fair value losses on derivative financial instruments   (0.4)  
Cost of equity-settled employee share schemes   0.3 0.1
Financial income   (2.4) (1.5)
Financial expense   4.5 2.9
Operating profit before changes in working capital and provisions    28.0  25.0 
Decrease/(increase) in inventories   3.0 (0.1)
Increase in receivables   (0.8) (0.1)
Increase/(decrease) in payables   3.1 (1.2)
Decrease in provisions   (3.4) (1.1)
Adjustments for foreign exchange losses   (0.1) -
Cash generated from operations    29.8  22.5 
Interest paid   (1.8) (1.7)
Tax paid   (1.6) (1.4)
Net cash flow from operating activities    26.4 19.4
       
Cash flows from investing activities       
Proceeds from sale of property, plant and equipment   2.1 1.6
Purchase of property, plant and equipment   (11.1) (8.7)
Software and development costs capitalised as intangible assets   (0.6) (1.3)
Interest received   0.5 0.1
Acquisition of subsidiary, net of cash acquired   (4.6) (1.5)
Net cash outflow from investing activities    (13.7) (9.8)
       
Cash flows from financing activities       
Proceeds from the issue of shares   - 0.1
Repayment of bank loans   (8.2) (1.6)
Dividends paid   (6.1) (9.3)
Net cash outflow from financing activities   (14.3) (10.8)
       
Decrease in cash and cash equivalents  22 (1.6)  (1.2) 
Cash and cash equivalents at 1 January   13.4 15.6
Exchange rate movements(1)    - (1.0)
Cash and cash equivalents at 31 December  21 11.8  13.4 

(1) Exchange rate movements result from the adjustment of opening balances and cash flows in the year to closing exchange rates.

As more fully explained in Note 25, financial instrument accounting is determined on different bases in 2005 and 2004 due to the transitional provisions of IFRS 1.

Information correct at 02/05/2006