26 Cash flow reconciliations
| Cash generated from operations |
2007
£m |
2006
£m |
| Operating profit |
221 |
203 |
| Adjustments for: |
|
|
| Profits and losses on sale of businesses |
— |
(5) |
| Amortisation of non-operating intangible assets arising on business combinations |
8 |
3 |
| Changes in fair value of derivative financial instruments |
10 |
(33) |
| Tangible fixed asset impairment/reversals |
(9) |
1 |
| Impairment of goodwill |
— |
11 |
| Depreciation and amortisation |
151 |
145 |
| Amortisation of capital grants |
(2) |
(3) |
| Net profits on sale of fixed assets |
(8) |
(3) |
| Charge for share-based payments |
6 |
5 |
| Movement in post-employment obligations |
(29) |
(204) |
| Changes in working capital and provisions |
(49) |
(3) |
|
|
299 |
117 |
|
|
|
|
| Movement in net debt |
2007
£m |
2006
£m |
| Net movement in cash and cash equivalents |
(78) |
(369) |
| Net movement in borrowings |
4 |
(36) |
| Currency variations on borrowings |
(7) |
34 |
| Finance leases |
1 |
1 |
| Subsidiaries acquired and sold |
— |
9 |
| Movement in year |
(80) |
(361) |
| Net debt at beginning of year |
(426) |
(65) |
| Net debt at end of year |
(506) |
(426) |
|
|
|
|
| Reconciliation of cash and cash equivalents |
2007
£m |
2006
£m |
| Cash and cash equivalents per balance sheet at 31 December |
282 |
342 |
| Bank overdrafts included within ‘current liabilities — borrowings’ (note 18) |
(32) |
(14) |
| Cash and cash equivalents per cash flow at 31 December |
250 |
328 |