Notes to the Accounts
29. Notes to consolidated statement of cash flows
| 2000 | 1999 | |||||
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| all figures in £ millions | continuing | discontinued | total | continuing | discontinued | total |
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| a. Reconciliation of operating profit to net cash inflow from operating activities | ||||||
| Operating profit | 203 | 8 | 211 | 270 | 48 | 318 |
| Share of operating loss/(profit) of joint ventures and associates | 19 | (8) | 11 | (23) | (48) | (71) |
| Depreciation charges | 100 | – | 100 | 82 | – | 82 |
| Goodwill amortisation | 188 | – | 188 | 130 | – | 130 |
| (Increase) in stocks | (97) | – | (97) | (57) | – | (57) |
| Decrease/(increase) in debtors | 53 | – | 53 | (71) | – | (71) |
| (Decrease)/increase in creditors | (119) | – | (119) | 127 | – | 127 |
| (Decrease) in operating provisions | (4) | – | (4) | (33) | – | (33) |
| Other and non-cash items | 18 | – | 18 | 8 | – | 8 |
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| Net cash inflow from operating activities | 361 | – | 361 | 433 | – | 433 |
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| Purchase of fixed assets and finance lease payments | (149) | – | (149) | (113) | – | (113) |
| Sale of operating tangible fixed assets | 22 | – | 22 | 24 | – | 24 |
| Dividends from associates | 11 | 38 | 49 | 12 | 32 | 44 |
| Other | (8) | – | (8) | 8 | – | 8 |
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| Operating cash | 237 | 38 | 275 | 364 | 32 | 396 |
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| Analysed between: | ||||||
| Operating cash flow before internet enterprises and other items | 542 | 38 | 580 | 508 | 32 | 540 |
| Cash effect of other items: | ||||||
| Dorling Kindersley exceptional payments | (46) | – | (46) | – | – | – |
| Integration costs: | ||||||
| Simon & Schuster | (27) | – | (27) | (110) | – | (110) |
| Dorling Kindersley | (25) | – | (25) | – | – | – |
| NCS | (9) | – | (9) | – | – | – |
| Cash effect of internet enterprises | (198) | – | (198) | (34) | – | (34) |
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| Operating cash | 237 | 38 | 275 | 364 | 32 | 396 |
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note • The Dorling Kindersley exceptional payments are in respect of creditors on the acquisition balance sheet beyond normal trading terms.
| all figures in £ millions | cash | over-drafts | sub-total | short-term deposits | debt due within one year |
debt due after one year |
finance leases | total |
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| b. Analysis of net debt | ||||||||
| At 31 December | 288 | (38) | 250 | 40 | (9) | (2,276) | (15) | (2,010) |
| Exchange differences | 14 | (7) | 7 | (1) | (1) | (122) | (1) | (118) |
| Acquired with subsidiary* | – | – | – | – | – | – | (11) | (11) |
| Television assets contributed* | – | – | – | (82) | – | 60 | 2 | (20) |
| Debt issue costs | – | – | – | – | – | 4 | – | 4 |
| Other non-cash items | – | – | – | – | – | (17) | (1) | (18) |
| Net cash | 123 | (65) | 58 | 134 | 8 | (354) | 10 | (144) |
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| At 31 December 2000 | 425 | (110) | 315 | 91 | (2) | (2,705) | (16) | (2,317) |
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| At 31 December 1998 | 305 | (67) | 238 | 40 | (5) | (2,552) | (19) | (2,298) |
| Exchange differences | (23) | 3 | (20) | 1 | – | (30) | (1) | (50) |
| Disposed with subsidiary* | – | – | – | – | – | – | 1 | 1 |
| Debt issue costs | – | – | – | – | – | 5 | – | 5 |
| Other non-cash items | – | – | – | – | – | (5) | (7) | (12) |
| Net cash flow | 6 | 26 | 32 | (1) | (4) | 306 | 11 | 344 |
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| At 31 December 1999 | 288 | (38) | 250 | 40 | (9) | (2,276) | (15) | (2,010) |
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* Excluding cash and overdrafts.
note • Finance leases are included within other creditors in the balance sheet (see note 22).
| all figures in £ millions | 2000 | 1999 |
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| c. Reconciliation of net cash flow to movement in net debt | ||
| Decrease in net debt from net cash flow | 58 | 32 |
| Decrease/(increase) in net debt from management of liquid resources | 134 | (1) |
| (Increase)/decrease in net debt from other borrowings | (346) | 302 |
| Decrease in finance leases | 10 | 11 |
| Television assets contributed | (20) | – |
| Acquired with subsidiary | (11) | – |
| Disposed with subsidiary | – | 1 |
| Debt issue costs | 4 | 5 |
| Other non-cash items | (18) | (12) |
| Exchange differences | (118) | (50) |
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| Movement in net debt in one year | (307) | 288 |
| Net debt at beginning of the year | (2,010) | (2,298) |
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| Net debt at end of the year | (2,317) | (2,010) |
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d. Tax paid includes £30m (1999: £100m) relating to items excluded from operating profit.
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