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Consolidated cash flow statement

for the year ended 31 December 2008

Notes 2008
£m
2007
£m
Cash flows from operating activities
Operating profit on continuing activities before interest and taxation 302.3 261.6
Depreciation 12 50.0 46.1
Amortisation of other intangible assets (treated as depreciation) 13 1.5 1.5
Amortisation of intangible assets created on acquisition 13 18.6 9.7
Share based payment expense 26 9.2 8.6
Pension charge 31 19.3 15.2
Pension contributions 31 (28.5) (21.0)
Loss/(profit)on sale of property, plant and equipment 1.1 (0.1)
Investment loss 4 0.2
Movement in provisions (2.2) 0.9
Increase in receivables (90.7) (71.4)
Increase in payables 111.2 82.9
Cash generated from operations before exceptional additional pension contribution 392.0 334.0
Income tax paid (48.6) (45.8)
Exceptional additional pension contribution 31 (10.0)
Net interest paid (38.4) (31.9)
Cash generated from operations after income tax, interest and exceptional additional pension contribution 295.0 256.3
Net cash used in investing activities
Purchase of property, plant and equipment 12 (86.4) (67.9)
Proceeds from sale of property, plant and equipment 0.3 1.0
Purchase of intangible fixed assets 13 (5.0)
Acquisition of subsidiary undertakings and businesses (188.4) (94.7)
Cash acquired with subsidiary undertakings 8.9 4.4
Disposal/(purchase) of financial assets 15 23.1 (4.4)
Investment loan 15 (6.2) (16.6)
Return on investment in joint venture 4/15 0.1
(248.6) (183.2)
Net cash from financing activities
Issue of ordinary share capital 27 35.7 67.2
Share buybacks 27 (68.4) (43.9)
Share transaction costs 27 (0.4) (0.5)
Dividends paid 11 (78.0) (218.6)
Capital element of finance lease rental payments 28 (0.2) (0.4)
Instalment debtor movement 28 0.7 20.4
Asset based securitised financing 28 (17.8)
Repayment of loan notes and long term loans 28 (3.3) (34.6)
Proceeds on issue of bonds 28 200.2 100.9
Financing arrangement costs 21 (0.7) (0.3)
85.6 (127.6)
Net increase in cash and cash equivalents 132.0 (54.5)
Cash and cash equivalents at the beginning of the period (45.3) 9.2
Cash and cash equivalents at 31 December 86.7 (45.3)
Cash and cash equivalents comprise:
Overdraft 21 (46.1)
Cash at bank and in hand 18 86.7 0.8
Total 86.7 (45.3)