Consolidated cash flow statement
- Consolidated income statement |
- Balance sheet |
- Consolidated cash flow statement |
Statement of changes in equity
| Consolidated cash flow statement for the year ended 31 December 2007 |
2007 | 2006 | |||
|---|---|---|---|---|---|
| Notes | Group £m |
Company £m |
Group £m |
Company £m |
|
| Cash flow from operating activities | |||||
| Profit before tax | 138.5 | 132.3 | 86.8 | 14.4 | |
| Adjustments for non-cash items: | |||||
| Amortisation of intangibles | 2.4 | - | 1.4 | - | |
| Equity settled share-based compensation | 3.1 | 6.2 | 0.8 | - | |
| Foreign exchange on translation of foreign subsidiary | (1.2) | - | (4.6) | - | |
| Net fair value losses/(gains) on financial assets | (14.3) | (4.6) | (8.8) | 0.8 | |
| Depreciation of plant & equipment | 1.6 | - | 1.2 | - | |
| Transfer of own shares in trust | - | (5.6) | - | - | |
| Transfer of shares to employees | 0.3 | 0.3 | - | - | |
| Changes in operating assets and liabilities | |||||
| Increase in insurance liabilities | 246.4 | - | 129.2 | - | |
| Increase in insurance receivables | 36.2 | - | (85.1) | - | |
| Decrease/(increase) in other receivables | 2.4 | (80.2) | 13.9 | 22.9 | |
| Increase in deferred acquisition costs | (3.1) | - | (26.2) | - | |
| Decrease/(increase) in reinsurance assets | (0.2) | - | 49.2 | - | |
| Increase in other payables | (49.2) | 2.0 | 37.6 | 6.5 | |
| Income tax paid | (18.7) | (2.7) | (11.5) | (3.1) | |
| Contribution to pension fund | (1.0) | - | (1.0) | - | |
| Acquisition of own shares in trust | 21 | (5.4) | (5.4) | (4.0) | - |
| Net cash from operating activities | 337.8 | 42.3 | 178.9 | 41.5 | |
| Cash flow from investing activities | |||||
| Purchase of plant and equipment | 13 | (1.8) | - | (5.7) | - |
| Purchase of syndicate capacity | 12 | - | - | (0.2) | - |
| Acquisition of subsidiary (net of cash acquired) | - | - | (2.2) | - | |
| Purchase of goodwill | 12 | (5.7) | - | - | - |
| Purchase of investments | (2,522.5) | (411.8) | (2,125.1) | (412.4) | |
| Expenditure on software development | 12 | (1.7) | - | (3.1) | - |
| Proceeds from sale of investments | (2,363.0) | (414.5) | 1,947.2 | 293.5 | |
| Capital injection in subsidiary | - | (32.8) | - | (33.4) | |
| Net cash used in investing activities | (168.7) | (30.1) | (189.1) | (152.3) | |
| Cash flow from financing activities | |||||
| Proceeds from issue of shares | 4.4 | 4.4 | 0.4 | 0.4 | |
| Purchase of treasury shares | (5.1) | (5.1) | - | - | |
| Repayment of syndicated loan | - | (1.8) | (18.6) | - | |
| Proceeds from Tier 2 subordinated debt | - | - | 148.1 | 148.1 | |
| Dividends paid | 11 | (18.6) | (18.6) | (14.6) | (14.6) |
| Net cash used in financing activities | (19.3) | (21.1) | 115.3 | 133.9 | |
| Net increase in cash and cash equivalents | 149.8 | (8.9) | 105.1 | 23.1 | |
| Cash and cash equivalents at beginning of year | 209.4 | 29.8 | 112.6 | 6.7 | |
| Effect of exchange rate changes on cash and cash equivalents | (0.9) | - | (8.3) | - | |
| Cash and cash equivalents at end of year | 19 | 358.3 | 20.9 | 209.4 | 29.8 |
The notes form part of these financial statements.
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