12.

Analysis of cash flows

The following tables analyse the items included within the main cash flow headings on page 3:

Net cash inflow from operating activities:


	Six months ended 30 June 2018			Six months ended 30 June 2017			Year ended 31 December 2017
	£m			£m			£m
Profit for the period		705.5			633.7			1,912.3
Taxation		141.0			145.5			197.0
Revaluation of financial instruments		(81.1	)		(83.9	)		(262.2	)
Finance costs		134.2			133.5			269.8
Finance income		(48.3	)		(44.9	)		(95.2	)
Share of results of associates		(9.4	)		(59.5	)		(113.5	)
Non-cash share-based incentive plans (including share options)		41.6			50.6			105.0
Depreciation of property, plant and equipment		109.2			115.6			230.7
Goodwill impairment		—			—			27.1
Amortisation and impairment of acquired intangible assets		84.0			97.8			195.1
Amortisation of other intangible assets		18.3			18.3			36.3
Investment write-downs		1.5			—			95.9
Gains on disposal of investments and subsidiaries		(189.9	)		(5.9	)		(129.0	)
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership		(0.1	)		0.2			0.3
(Gains)/losses on sale of property, plant and equipment		(0.3	)		0.1			1.1
Movements in trade working capital¹		(192.0	)		(257.8	)		(261.2	)
Movements in other receivables, payables and provisions¹		(363.5	)		(365.7	)		(270.6	)
Corporation and overseas tax paid		(251.3	)		(254.2	)		(424.7	)
Interest and similar charges paid		(89.8	)		(96.6	)		(246.6	)
Interest received		39.6			35.2			76.9
Investment income		10.3			5.4			16.8
Dividends received from associates		13.4			18.2			46.8
		72.9			85.6			1,408.1

Note

¹	The Group typically experiences an outflow of working capital in the first half of the financial year and an inflow in the second half. This is primarily due to the seasonal nature of working capital flows associated with its media buying activities on behalf of clients.

Acquisitions and disposals:


	Six months ended 30 June 2018			Six months ended 30 June 2017			Year ended 31 December 2017
	£m			£m			£m
Initial cash consideration		(18.9	)		(108.6	)		(214.8	)
Cash and cash equivalents acquired (net)		(4.1	)		15.7			28.9
Earnout payments		(38.0	)		(61.7	)		(199.1	)
Purchase of other investments (including associates)		(34.0	)		(52.6	)		(92.5	)
Proceeds on disposal of investments and subsidiaries¹		469.0			5.8			296.0
Acquisitions and disposals		374.0			(201.4	)		(181.5	)
Cash consideration for non-controlling interests		(79.8	)		(39.3	)		(47.3	)
Net acquisition payments and disposal proceeds		294.2			(240.7	)		(228.8	)

Note

¹	Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates.

Share repurchases and buy-backs:


	Six months ended 30 June 2018			Six months ended 30 June 2017			Year ended 31 December 2017
	£m			£m			£m
Purchase of own shares by ESOP Trusts		(96.5	)		(145.3	)		(214.6	)
Shares purchased into treasury		(104.3	)		(144.9	)		(289.6	)
		(200.8	)		(290.2	)		(504.2	)

Net increase in borrowings:


	Six months ended 30 June 2018			Six months ended 30 June 2017			Year ended 31 December 2017
	£m			£m			£m
(Decrease)/increase in drawings on bank loans		(349.0	)		1,080.8			785.6
Proceeds from issue of €250 million bonds		218.8			214.0			214.0
Proceeds from issue of €500 million bonds		438.0			—			—
Partial repayment of $300 million bonds		(20.8	)		—			—
Repayment of €252 million bonds		(220.0	)		—			—
Repayment of £400 million bonds		—			(400.0	)		(400.0	)
		67.0			894.8			599.6

Cash and cash equivalents:

Note

¹	Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.