Consolidated cash flow statement
 
for the year ended 31 December 2006
  Notes 2006 
£m 		 2005 
£m 
Cash flows from operating activities
Operating profit on continuing activities before interest and taxation   218.2  166.6 
Depreciation 13 42.2  31.7 
Amortisation of other intangible assets (treated as depreciation) 14 1.2  4.9 
Amortisation of intangible assets created on acquisition 14 6.9  4.5 
Impairment of goodwill 15 –  12.0 
Share based payment expense 26 8.5  7.6 
Pension charge 31 15.9  12.0 
Pension contributions 31 (19.1) (16.6)
Loss on sale of property, plant and equipment   0.3  0.5 
Movement in provisions   (1.9) (2.4)
Increase in debtors   (48.8) (19.4)
Increase in creditors   55.6  30.8 
Cash generated from operations   279.0  232.2 
Income tax paid   (40.3) (38.2)
Interest paid   (23.1) (13.9)
Interest received   1.0  0.4 
Net cash generated from operating activities   216.6  180.5 
Net cash used in investing activities
Purchase of property, plant and equipment 13 (63.0) (49.7)
Proceeds from sale of property, plant and equipment   1.9  0.4 
Purchase of intangible fixed assets 14 (1.4) (4.0)
Acquisition of subsidiary undertakings and businesses   (37.6) (101.9)
Cash acquired with subsidiary undertakings   1.0  2.7 
Purchase of trade investments in insurance captives 16 (7.6) (12.0)
Investment loan 16 (11.7) – 
    (118.4) (164.5)
Net cash used in financing activities
Issue of ordinary share capital 27 50.4  9.9 
Share buybacks 27 (244.9) (49.6)
Share transaction costs 27 (1.2) (0.3)
Dividends paid 12 (47.7) (38.0)
Capital element of finance lease rental payments 28 (0.4) (0.2)
Asset based securitised financing 28 (0.7) 1.4 
Repayment of loan notes and long term loans 28 (3.4) (7.3)
Proceeds on issue of bond 21 179.1  75.0 
Financing arrangement costs 21 (0.9) (0.1)
    (69.7) (9.2)
Net increase in cash and cash equivalents   28.5  6.8 
Cash and cash equivalents at the beginning of the period   (19.3) (26.1)
Cash and cash equivalents at 31 December   9.2  (19.3)
Cash and cash equivalents comprise:
Overdraft 21 (0.5) (19.3)
Cash at bank and in hand   9.7  – 
Total   9.2  (19.3)