24. Notes to the cash flow statement
| Note | a) Reconciliation of operating profit to net cash inflow from operating activities | Year ended 31 December 2003 £m |
Year ended 31 December 2002 £m |
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| Operating (loss)/profit | (279) | 105 | ||
| 13 | Impairment | 404 | 103 | |
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| 125 | 208 | |||
| 13 | Depreciation | 108 | 111 | |
| 12 | Goodwill amortisation | – | (1) | |
| 14 | Other amortisation | 1 | 2 | |
| Movement in working capital: | ||||
| Increase in stocks | (5) | (29) | ||
| (Increase)/decrease in debtors | (25) | 19 | ||
| Decrease in creditors | (13) | (37) | ||
| (Decrease)/increase in provisions | (7) | 3 | ||
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| Net cash inflow from operating activities | 184 | 276 | ||
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| b) Dividends received from joint ventures and associates | ||||
| Dividends from joint ventures | 10 | 12 | ||
| Dividends from associates | 58 | 72 | ||
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| Total dividends received from joint ventures and associates | 68 | 84 | ||
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| c) Returns on investments and servicing of finance | ||||
| Other interest and dividends received | 26 | 24 | ||
| Debt and loan interest paid | (105) | (102) | ||
| Debt issue costs paid | (3) | (8) | ||
| Dividends paid to minority shareholders | (2) | (2) | ||
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| Returns on investments and servicing of finance – ordinary | (84) | (88) | ||
| Returns on investments and servicing of finance – exceptional: | ||||
| Refinancing charges | (4) | (25) | ||
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| Net cash outflow from returns on investments and servicing of finance | (88) | (113) | ||
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| d) Capital expenditure and financial investment | ||||
| Purchase of tangible fixed assets: | ||||
| Maintenance | (64) | (48) | ||
| Growth | (57) | (96) | ||
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| Purchase of tangible fixed assets | (121) | (144) | ||
| Receipts from sale of fixed assets | 1 | – | ||
| Compensation for long-term performance shortfalls | 56 | – | ||
| Purchase of shares for employee share schemes | (2) | (2) | ||
| Loan advanced to joint venture | (8) | – | ||
| Cash paid in respect of net investment hedges | – | |||
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| Net cash outflow from capital expenditure and financial investment – ordinary | (74) | (159) | ||
| Net cash inflow from capital expenditure and financial investment – exceptional: | ||||
| Receipts from sale of fixed asset investment | 11 | – | ||
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| Net cash outflow from capital expenditure and financial investment | (63) | (159) | ||
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| e) Acquisitions and disposals | ||||
| Purchase of subsidiary undertakings | – | (144) | ||
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| Acquisitions and disposals – ordinary | – | (144) | ||
| Receipts from partial disposal of investment in HUBCO | 21 | – | ||
| Receipts from sale of subsidaries | 3 | – | ||
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| Acquisitions and disposals – exceptional | 24 | – | ||
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| Net cash inflow/(outflow) from acquisitions and disposals | 24 | (144) | ||
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| f) Financing activities | ||||
| 23 | Share buyback | (13) | – | |
| 26 | Bank loans | (247) | 210 | |
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| Net cash (outflow)/inflow from financing activities | (260) | 210 | ||
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