Annual Report and Accounts 2010

Consolidated cash flow statement

For the year ended 31 December

 

 

Note

2010
£000

2009
£000

Profit before tax

110,027

47,259

Investment income (net)

(3,068)

(1,645)

Profit from operations

106,959

45,614

Adjustments for:

 

Depreciation and amortisation of property, plant and equipment
and intangible assets

19,949

24,953

Loss on disposal of property, plant and equipment and intangible assets

252

79

Compensation charge in respect of share-based payments

27,129

19,001

Impairment of available-for-sale investments

412

Profit on disposal of available-for-sale investments

(37)

(224)

Provision for doubtful debts

(904)

1,018

Provision for obsolescence of inventories

(199)

211

Movement in fair value of currency exchange contracts

658

(18,914)

Movement in fair value of embedded derivatives

177

9,818

Changes in working capital

 

Accounts receivable

(39,942)

9,531

Inventories

95

81

Prepaid expenses and other assets

4,695

358

Accounts payable

2,025

(4,673)

Deferred revenue

53,594

10,281

Accrued and other liabilities

25,340

14,564

Cash generated by operations before tax

199,791

112,110

Income taxes paid

(22,859)

(15,550)

Net cash from operating activities

176,932

96,560

Investing activities

 

Interest received

2,101

1,277

Interest paid

(566)

Purchases of property, plant and equipment

14

(6,182)

(6,030)

Purchases of other intangible assets

(1,173)

(3,888)

Purchases of available-for-sale investments

(10,997)

(9,116)

Proceeds on disposal of property, plant and equipment

146

49

Proceeds on disposal of available-for-sale investments

142

663

Purchase of short- and long-term deposits

(153,264)

(104,902)

Outflow from provision of long-term loan

(1,934)

Purchase of subsidiaries, net of cash acquired*

(563)

Net cash used in investing activities

(171,727)

(122,510)

Financing activities

 

Proceeds received on issuance of shares from treasury

24,015

19,085

Dividends paid to shareholders

7

(34,323)

(28,961)

Net cash used in financing activities

(10,308)

(9,876)

Net decrease in cash and cash equivalents

(5,103)

(35,826)

Cash and cash equivalents at beginning of the year

34,489

76,502

Effect of foreign exchange rate changes

(23)

(6,187)

Cash and cash equivalents at end of the year

9

29,363

34,489

*The aggregate cash outflow for purchase of subsidiaries in 2010 was £nil (2009: £563,000) and net cash acquired was £nil (2009: £nil).

The accompanying notes are an integral part of the financial statements.