Note

2009
£000

2008
£000

Operating activities

Profit from operations

45,614

59,943

Adjustments for:

Depreciation and amortisation of tangible and intangible assets

24,953

26,952

Loss on disposal of property, plant and equipment

79

36

Compensation charge in respect of share-based payments

19,001

15,409

Impairment of available-for-sale investments

412

−

Profit on disposal of available-for-sale investments

(224)

−

Provision for doubtful debts

1,018

641

Provision for obsolescence of inventories

211

87

Movement in fair value of currency exchange contracts

(18,914)

17,961

Movement in fair value of embedded derivatives

9,818

(12,518)

Changes in working capital

Accounts receivable

9,531

(6,364)

Inventories

 81

280

Prepaid expenses and other assets

358

(8,915)

Accounts payable

(4,673)

4,661

Deferred revenue

10,281

1,548

Accrued and other liabilities

14,564

6,831

Cash generated by operations before tax

112,110

106,552

Income taxes paid

(15,550)

(6,019)

Net cash from operating activities

96,560

100,533

Investing activities

Interest received

1,277

3,234

Purchases of property, plant and equipment

14

(6,030)

(8,084)

Purchases of other intangible assets

(3,888)

(5,938)

Purchases of available-for-sale investments

13

(9,116)

(1,029)

Proceeds on disposal of available-for-sale investments

663

6,291

Proceeds on disposal of property, plant and equipment

49

−

Purchase of short-term investments

(104,902)

(758)

Purchase of subsidiaries, net of cash acquired*

(563)

(7,371)

Net cash used in investing activities

(122,510)

(13,655)

Financing activities

Proceeds received on issuance of shares from treasury

19,085

5,581

Purchase of own shares

20

−

(40,286)

Dividends paid to shareholders

7

(28,961)

(26,383)

Net cash used in financing activities

(9,876)

(61,088)

Net (decrease)/increase in cash and cash equivalents

(35,826)

25,790

Cash and cash equivalents at beginning of the year

76,502

49,509

Effect of foreign exchange rate changes

(6,187)

1,203

Cash and cash equivalents at end of the year

9

34,489

76,502