| Notes | 2006 £m |
Restated* 2005 £m |
|
|---|---|---|---|
| Reconciliation of operating cash flows | |||
| Profit before taxation | 1,391 | 477 | |
| Share of profit of joint ventures | 11 | (47) | (46) |
| (Profit)/loss on sale or termination of businesses | 32 | (1) | 2 |
| (Profit)/loss on sale of property, plant and equipment | (9) | 1 | |
| Net interest payable | 5 | 18 | 39 |
| Net post-retirement scheme financing (income)/costs | 5 | (3) | 9 |
| Net other financing (income)/costs | 5 | (713) | 352 |
| Taxation paid | (25) | (60) | |
| Amortisation of intangible assets | 9 | 60 | 59 |
| Depreciation of property, plant and equipment | 10 | 161 | 195 |
| Decrease in provisions | (36) | (31) | |
| Increase in inventories | (136) | (221) | |
| Increase in trade and other receivables | (397) | (252) | |
| Increase in trade and other payables | 789 | 720 | |
| Decrease in other financial assets and liabilities | 250 | 283 | |
| Post-retirement benefits adjustment | (21) | (69) | |
| Share-based payments charge | 27 | 36 | 26 |
| Transfers of hedge reserves to income statement | 25 | (289) | (459) |
| Dividends received from joint ventures | 11 | 44 | 35 |
| Net cash inflow from operating activities | 1,072 | 1,060 | |
| Cash flows from investing activities | |||
| Disposals of unlisted investments | — | 5 | |
| Additions to intangible assets | (219) | (132) | |
| Disposals of intangible assets | 7 | — | |
| Purchases of property, plant and equipment | (298) | (219) | |
| Disposals of property, plant and equipment | 55 | 69 | |
| Acquisition of businesses | 32 | (5) | — |
| Disposals of businesses | 32 | 1 | 1 |
| Investments in joint ventures | (11) | (13) | |
| Disposals of joint ventures | 1 | — | |
| Net cash outflow from investing activities | (469) | (289) | |
| Cash flows from financing activities | |||
| Borrowings due within one year – repayment of loans | (53) | (202) | |
| Borrowings due after one year – repayment of loans | — | (5) | |
| Capital element of finance lease payments | (8) | (11) | |
| Net cash outflow from decrease in borrowings | (61) | (218) | |
| Interest received | 84 | 41 | |
| Interest paid | (96) | (88) | |
| Interest element of finance lease payments | (2) | (2) | |
| Decrease/(increase) in government securities and corporate bonds | 3 | (1) | |
| Issue of ordinary shares | 9 | 26 | |
| Purchase of own shares | (44) | — | |
| Settlement of financial liabilities to purchase own shares | — | (149) | |
| Other transactions in own shares | 78 | — | |
| Redemption of B Shares | (93) | (52) | |
| Net cash outflow from financing activities | (122) | (443) | |
| Increase in cash and cash equivalents | 481 | 328 | |
| Cash and cash equivalents at January 1 | 1,745 | 1,439 | |
| Foreign exchange | (60) | 45 | |
| Net cash of businesses acquired/disposed | 5 | 1 | |
| Adjustment on implementation of IAS 32 and IAS 39 | — | (68) | |
| Cash and cash equivalents at December 31 | 2,171 | 1,745 |
| 2006 £m |
2005 £m |
|
|---|---|---|
| Reconciliation of increase in cash and cash equivalents to movements in net funds | ||
| Increase in cash and cash equivalents | 481 | 328 |
| Cash (inflow)/outflow from (decrease)/increase in government securities and corporate bonds | (3) | 1 |
| Net cash outflow from decrease in borrowings | 61 | 218 |
| Change in net funds resulting from cash flows | 539 | 547 |
| Borrowings of businesses disposed | — | 1 |
| Net funds of businesses acquired | 1 | — |
| Finance lease additions | — | (1) |
| Exchange adjustments | (49) | 5 |
| Fair value adjustments | 77 | 47 |
| Movement in net funds | 568 | 599 |
| Net funds/(debt) at January 1 | 261 | (149) |
| Adjustment on implementation of IAS 32 and IAS 39 | — | (189) |
| 829 | 261 | |
| Fair value of swaps hedging fixed rate borrowings | (3) | 74 |
| Net funds at December 31 | 826 | 335 |
| Analysis of net funds | At January 1, 2006 £m |
Cash flow £m |
Net funds of businesses acquired £m |
Exchange adjustments £m |
Fair value adjustments £m |
Other non-cash changes £m |
At December 31, 2006 £m |
|---|---|---|---|---|---|---|---|
| Cash at bank and in hand | 338 | 439 | 5 | (25) | — | — | 757 |
| Overdrafts | (12) | (3) | — | 1 | — | — | (14) |
| Short-term deposits | 1,419 | 45 | — | (36) | — | — | 1,428 |
| Cash and cash equivalents | 1,745 | 481 | 5 | (60) | — | — | 2,171 |
| Investments | 37 | (3) | — | — | — | — | 34 |
| Other borrowings due within one year | (55) | 53 | (1) | 5 | 17 | (398) | (379) |
| Borrowings due after one year | (1,444) | — | (3) | 6 | 60 | 398 | (983) |
| Finance leases | (22) | 8 | — | — | — | — | (14) |
| 261 | 539 | 1 | (49) | 77 | — | 829 | |
| Fair value of swaps hedging fixed rate borrowings | 74 | (77) | (3) | ||||
| 335 | 539 | 1 | (49) | — | — | 826 |