Consolidated cash flow statement
for the years ended 31 March
| Notes | 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Total operating profit | 2,964 | 2,513 | 2,374 | |
| Adjustments for: | ||||
| Exceptional items, remeasurements and stranded cost recoveries* | (369) | (482) | (406) | |
| Depreciation and amortisation | 994 | 871 | 888 | |
| Share-based payment charge | 18 | 15 | 14 | |
| Changes in working capital | (150) | 127 | (181) | |
| Changes in provisions | (5) | (31) | 7 | |
| Changes in pensions and other post-retirement benefit obligations | (333) | (125) | (40) | |
| Cash flows relating to exceptional items | (132) | (86) | (115) | |
| Cash flows relating to stranded cost recoveries* | 278 | 288 | 432 | |
| Cash flows generated from continuing operations | 3,265 | 3,090 | 2,973 | |
| Cash flows relating to discontinued operations | 27(a) | 10 | 181 | 138 |
| Cash generated from operations | 3,275 | 3,271 | 3,111 | |
| Tax paid – continuing operations | (110) | (310) | (103) | |
| Tax paid – discontinued operations | – | (3) | (37) | |
| Net cash inflow from operating activities | 3,165 | 2,958 | 2,971 | |
| Cash flows from investing activities | ||||
| Acquisition of subsidiaries, net of cash acquired | 28 | (3,502) | (269) | – |
| Acquisition of other investments | (26) | – | – | |
| Sale of investments in subsidiaries and other investments | 55 | 19 | 8 | |
| Purchases of intangible assets | (45) | (33) | (15) | |
| Purchases of property, plant and equipment | (2,832) | (2,185) | (1,657) | |
| Disposals of property, plant and equipment | 26 | 21 | 18 | |
| Interest received* | 206 | 216 | 130 | |
| Purchases of financial investments | (8,788) | (3,699) | (2,870) | |
| Sales of financial investments | 8,833 | 1,974 | 2,895 | |
| Dividends received from joint ventures | – | – | 2 | |
| Cash flows used in continuing operations – investing activities* | (6,073) | (3,956) | (1,489) | |
| Cash flows relating to discontinued operations – investing activities | 27(b) | 3,050 | (105) | 5,541 |
| Net cash flow (used in)/from investing activities* | (3,023) | (4,061) | 4,052 | |
| Cash flows from financing activities | ||||
| Proceeds from issue of share capital and sale of treasury shares | 23 | 16 | 54 | |
| Proceeds from loans received | 1,568 | 5,519 | 1,026 | |
| Repayment of loans | (650) | (2,311) | (1,714) | |
| Net movements in short-term borrowings and derivatives | 671 | (163) | (1,616) | |
| Interest paid | (900) | (813) | (834) | |
| Exceptional finance costs on the repayment of debt | – | (45) | (49) | |
| Dividends paid to shareholders | (780) | (730) | (745) | |
| Cash paid to shareholders under B share scheme | (26) | (26) | (1,957) | |
| Repurchase of share capital and purchase of treasury shares | (1,498) | (169) | (7) | |
| Net cash flow (used in)/from financing activities* | (1,592) | 1,278 | (5,842) | |
| Net (decrease)/increase in cash and cash equivalents | (1,450) | 175 | 1,181 | |
| Exchange movements | 4 | (14) | 14 | |
| Cash included within assets of businesses held for sale | 23 | (23) | – | |
| Net cash and cash equivalents at start of year (i) | 1,587 | 1,449 | 254 | |
| Net cash and cash equivalents at end of year (i) | 20 | 164 | 1,587 | 1,449 |
*Comparatives have been adjusted to present items on a basis consistent with the current year classification for stranded cost recoveries and interest received
(i) Net of bank overdrafts of £10m (2007: £6m; 2006: £3m).
