Financial Statements

Notes to the Consolidated Financial Statementsfor the year to 31 December 2008

32. Notes to the cash flow statement

2008
£m
2007
(restated)
£m
(Loss)/profit on ordinary activities before finance costs – continuing (1,798.2) 55.8
    – discontinued 2.1 13.4
Non-cash exceptional items:    
    Impairment of goodwill 699.8
    Impairment of brands and software development 116.3 30.0
    Land and WIP write downs 1,012.8 289.7
Adjustments for:  
    Amortisation of brands 2.4 3.7
    Amortisation of software development costs 4.3 2.0
    Depreciation of plant and equipment 7.9 8.3
    Share-based payment charge 6.0 0.6
    Gain/(loss) on disposal of property and plant 1.0 (5.7)
    Increase in provisions 6.8 38.6
Operating cash flows before movements in working capital 61.2 436.4
    Decrease/(increase) in inventories 393.7 (316.0)
    Decrease in receivables 135.9 38.9
    Decrease in payables (390.8) (81.6)
    Pension contributions in excess of charge (44.1) (30.0)
Cash generated by operations 155.9 47.7
     
Income taxes received/(paid) 112.6 (127.3)
Interest paid (114.9) (83.7)
Net cash from/(used in) operating activities 153.6 (163.3)

Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short term highly liquid investments with an original maturity of three months or less.

2008
£m
2007
£m
Net debt
Cash and cash equivalents 752.3 130.0
Bank overdrafts and bank loans (1,312.5) (720.7)
Debenture loans (969.1) (824.7)
Net debt (1,529.3) (1,415.4)