Annual Report and Accounts 2009

Notes to the Consolidated Financial Statements for the year to 31 December 2009

28. Notes to the cash flow statement

  2009
£m
2008
£m
Loss on ordinary activities before finance costs – continuing (543.0) (1,798.2)
– discontinued 2.1
Non-cash exceptional items:
Impairment of goodwill 699.8
Impairment of fixed assets 0.5
Impairment of brands and software development 116.3
Inventories write downs 527.0 1,012.8
Adjustments for:  
Amortisation of brands 2.4
Amortisation of software development costs 4.3
Depreciation of plant and equipment 4.2 7.9
Share-based payment charge 1.0 6.0
Loss on disposal of property and plant 0.2 1.0
(Decrease)/increase in provisions (3.1) 6.8
Operating cash flows before movements in working capital (13.2) 61.2
Decrease in inventories 735.0 393.7
Decrease in receivables 25.4 135.9
Decrease in payables (432.6) (390.8)
Pension contributions in excess of charge (44.7) (44.1)
Cash generated by operations 269.9 155.9
Income taxes received 109.1 112.6
Interest paid (172.7) (114.9)
Net cash from operating activities 206.3 153.6

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.

Movement in net debt

  Cash and cash
equivalents
£m
Bank overdrafts
and bank loans
£m
Debenture loans
£m
Total net debt
£m
Balance 1 January 2008 130.0 (720.7) (824.7) (1,415.4)
Cashflow 577.8 (525.7) 1.4 53.5
Foreign exchange 44.5 (66.1) (145.8) (167.4)
Balance 31 December 2008 752.3 (1,312.5) (969.1) (1,529.3)
Cashflow (595.8) 1,124.9 200.4 729.5
Business disposals* 4.1 4.1
Foreign exchange (24.4) 22.4 46.8 44.8
Balance 31 December 2009 132.1 (161.1) (721.9) (750.9)

* In April 2009 the Group disposed of its residual construction operations to existing local management for £1. At the point of disposal the business had bank loans of £4.1m.