| Note | Year ended 31 December 2004 £m |
Year ended 31 December 2003 £m |
|
|---|---|---|---|
| a) Reconciliation of operating profit to net cash inflow from operating activities | |||
| Operating profit/(loss) | 121 | (279) | |
| Impairment | – | 404 | |
| Release of guarantee on sale of Elcogas | (11) | – | |
| 110 | 125 | ||
| 14 | Depreciation | 85 | 108 |
| Other amortisation | – | 1 | |
| Movement in working capital: | |||
| Increase in stocks | (6) | (5) | |
| Decrease/(increase) in debtors | 8 | (25) | |
| Increase/(decrease) in creditors | 1 | (13) | |
| Decrease in provisions | – | (7) | |
| Net cash inflow from operating activities | 198 | 184 | |
| b) Dividends received from joint ventures and associates | |||
| Dividends from joint ventures | 10 | 10 | |
| Dividends from associates | 59 | 91 | |
| Total dividends received from joint ventures and associates | 69 | 101 | |
| To aid comparability dividends from KAPCO have been included in the share of associates' dividends for 2003 in the above table. | |||
| c) Returns on investments and servicing of finance | |||
| Other interest and dividends received | 29 | 26 | |
| Debt and loan interest paid | (105) | (105) | |
| Debt issue costs paid | (30) | (3) | |
| Dividends paid to minority shareholders | (3) | (2) | |
| Returns on investments and servicing of finance – ordinary | (109) | (84) | |
| Returns on investments and servicing of finance – exceptional: | |||
| Refinancing and swap termination costs | (26) | (4) | |
| Net cash outflow from returns on investments and servicing of finance | (135) | (88) | |
| d) Capital expenditure and financial investment | |||
| Purchase of tangible fixed assets: | |||
| Maintenance | (59) | (64) | |
| Growth | (158) | (57) | |
| Purchase of tangible fixed assets | (217) | (121) | |
| Receipts from sale of fixed assets | – | 1 | |
| Compensation for long-term performance shortfalls | 5 | 56 | |
| Investment in joint ventures and associates | (64) | (8) | |
| Return on investment in joint venture | 4 | – | |
| Other financial investment | (1) | (2) | |
| Net cash outflow from capital expenditure and financial investment – ordinary | (273) | (74) | |
| Net cash outflow from capital expenditure and financial investment – exceptional: | |||
| Receipts from sale of fixed asset investment | – | 11 | |
| Net cash outflow from capital expenditure and financial investment | (273) | (63) | |
| e) Acquisitions and disposals | |||
| 26 | Purchase of the EME portfolio | (1,060) | – |
| 26 | Purchase of Turbogás | (135) | – |
| 26 | Net cash acquired with subsidiaries | 52 | – |
| Acquisitions and disposals – ordinary | (1,143) | – | |
| Receipts from partial disposal of investment in HUBCO | 17 | 21 | |
| Receipts from sale of subsidaries | – | 3 | |
| Acquisitions and disposals – exceptional | 17 | 24 | |
| Net cash (outflow)/inflow from acquisitions and disposals | (1,126) | 24 | |
| f) Financing activities | |||
| 23 | Share buyback | – | (13) |
| Proceeds from share issue | 286 | – | |
| Funding from minorities | 165 | – | |
| 27 | Bank loans | 617 | (247) |
| Net cash inflow/(outflow) from financing activities | 1,068 | (260) | |