For the year ended 31 December 2006
| Note | Year ended 31 December 2006 £m |
Year ended 31 December 2005 £m |
|
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit for the year | 477 | 330 | |
| Adjustments for: | |||
| Income tax expense | 147 | 89 | |
| Net finance costs | 274 | 202 | |
| Profit on disposal of investments – exceptional | – | (10) | |
| Share of results of joint ventures and associates | (214) | (198) | |
| Depreciation of property, plant and equipment and amortisation of intangible assets | 273 | 188 | |
| Impairment reversal – exceptional | (36) | (52) | |
| Profit on receipt from TXU administrators – exceptional | (14) | (58) | |
| Profit on compensation for breach of contract – exceptional | (5) | – | |
| Specific IAS 39 mark to market movements | (64) | 42 | |
| Other non-cash movements | (44) | (36) | |
| (Decrease)/increase in provisions | (9) | 3 | |
| Proceeds from sale of property, plant and equipment | – | 3 | |
| Decrease in finance lease receivables | 14 | 10 | |
| Dividends received from joint ventures and associates | 113 | 92 | |
| Purchase of property, plant and equipment – maintenance | (128) | (72) | |
| Operating cash flows before movements in working capital | 784 | 533 | |
| Increase in inventories | (18) | (13) | |
| Decrease/(increase) in trade and other receivables | 22 | (154) | |
| (Decrease)/increase in trade and other payables | (19) | 146 | |
| Cash generated from operations | 769 | 512 | |
| Income taxes paid | (57) | (31) | |
| Interest paid | (293) | (231) | |
| Interest received | 37 | 35 | |
| Free cash flow | 456 | 285 | |
| Cash flows relating to exceptional items: | |||
| Receipt from TXU administrators – exceptional | 14 | 58 | |
| Receipt of compensation for breach of contract – exceptional | 5 | – | |
| Finance costs – exceptional | – | (5) | |
| Net cash inflow from operating activities | 475 | 338 | |
| Cash flows from investing activities | |||
| Purchase of property, plant and equipment – growth | (142) | (188) | |
| 31 | Acquisitions of subsidiaries, net of cash and cash equivalents acquired | (650) | (494) |
| 31 | Acquisitions of joint ventures, associates and investments | (64) | (50) |
| Returns from joint ventures and associates (net of investments) | 24 | 48 | |
| Proceeds from disposal of a subsidiary | – | 73 | |
| Proceeds from disposal of investments | 1 | 138 | |
| Net cash outflow from investing activities | (831) | (473) | |
| Cash flows from financing activities | |||
| Dividends paid | (67) | (37) | |
| Proceeds from share issue | 15 | 2 | |
| Proceeds from long-term borrowings | 1,340 | 563 | |
| Repayment of long-term borrowings | (495) | (422) | |
| Funding from minority interests | 7 | 80 | |
| Funding repaid to minority interests | (4) | – | |
| Distributions paid to minority interests | (54) | (14) | |
| Net cash inflow from financing activities | 742 | 172 | |
| Net increase in cash and cash equivalents | 386 | 37 | |
| Cash and cash equivalents at beginning of the year | 620 | 565 | |
| Effect of foreign exchange rate changes thereon | (26) | 18 | |
| 23 | Cash and cash equivalents at end of the year | 980 | 620 |
