Notes to the Financial Statements

23 Notes to the cash flow statement

Reconciliation of operating profit to net cash inflow from operating activities
        2005
£m
2004 Restated £m
Operating profit       462.3 421.8
Dividends received         (0.2)
Depreciation and release of negative goodwill       0.3 (0.9)
Adjustment for share options, share awards       8.0 (3.3)
  and pension funding
Decrease in trading properties       5.7 4.6
(Increase) decrease in debtors       (25.3) 15.1
Increase (decrease) in creditors       11.2 (55.7)
Net cash inflow from operating activities 462.2 381.4
 
Analysis of Group net debt
  1 April
2004
£m
Exceptional item†
£m
Acquisitions*
£m
Cash flow
£m
Non cash movements
£m
31 March
2005
£m
Cash at bank (96.2)     41.5   (54.7)
Overdraft 7.3     (3.6)   3.7
Net cash per cash flow statement (88.9)     37.9   (51.0)
Term debt 4,884.2 158.2 648.6 468.3 28.4† 6,187.7
Convertible Bonds 149.0       (149.0)  
Term deposits (77.5)     (18.6)   (96.1)
Group net debt 4,866.8 158.2 648.6 487.6 (120.6) 6,040.6
The cash impact of the exceptional item, described in note 5, was £158.2m. The remaining £21.8m is in respect of unamortised issue costs written off and is included in non cash movements. * Excluding cash and overdrafts.
Reconciliation of net cash flow to movement in Group net debt
  2005
£m
2004
£m
Brought forward 4,866.8 4,361.4
Decrease (increase) in cash 37.9 (47.0)
Cash inflow from movement in debt 468.3 134.6
Cash (outflow) inflow from term deposits (18.6) 11.9
Changes resulting from cash flows 487.6 99.5
Other non cash movements including acquisitions 528.0 405.9
Exceptional item: 158.2  
Movement in net debt in the year 1,173.8 505.4
Carried forward 6,040.6 4,866.8