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Consolidated cash flow statement

for the year ended 31 December 2007



   Notes    2007 £m 2006 £m
Cash flows from operating activities            
Operating profit on continuing activities before interest and taxation       261.6 218.2
Depreciation 13    46.1 42.2
Amortisation of other intangible assets (treated as depreciation) 14    1.5 1.2
Amortisation of intangible assets created on acquisition 14    9.7 6.9
Share based payment expense 27    8.6 8.5
Pension charge 32    15.2 15.9
Pension contributions 32    (21.0) (19.1)
(Profit)/loss on sale of property, plant and equipment       (0.1) 0.3
Movement in provisions 24    0.9 (1.9)
Increase in debtors       (71.4) (48.8)
Increase in creditors       82.9 55.6
Cash generated from operations       334.0 279.0
Income tax paid       (45.8) (40.3)
Interest paid       (33.5) (23.1)
Interest received       1.6 1.0
Cash generated from operations after interest       256.3 216.6
Net cash used in investing activities            
Purchase of property, plant and equipment 13    (67.9) (63.0)
Proceeds from sale of property, plant and equipment       1.0 1.9
Purchase of intangible fixed assets 14    (5.0) (1.4)
Acquisition of subsidiary undertakings and businesses       (94.7) (37.6)
Cash acquired with subsidiary undertakings       4.4 1.0
Purchase of financial assets 16    (4.4) (7.6)
Investment loan 16    (16.6) (11.7)
         (183.2) (118.4)
Net cash used in financing activities            
Issue of ordinary share capital 28    67.2 50.4
Share buybacks 28    (43.9) (244.9)
Share transaction costs 28    (0.5) (1.2)
Dividends paid 12    (218.6) (47.7)
Capital element of finance lease rental payments 29    (0.4) (0.4)
Instalment debtor movement 29    20.4
Asset based securitised financing 29    (17.8) (0.7)
Repayment of loan notes and long term loans 29    (34.6) (3.4)
Proceeds on issue of bonds 29    100.9 179.1
Financing arrangement costs 22    (0.3) (0.9)
         (127.6) (69.7)
Net increase in cash and cash equivalents       (54.5) 28.5
Cash and cash equivalents at the beginning of the period       9.2 (19.3)
Cash and cash equivalents at 31 December       (45.3) 9.2
Cash and cash equivalents comprise:            
Overdraft 22    (46.1) (0.5)
Cash at bank and in hand 19    0.8 9.7
Total       (45.3) 9.2