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Analysis of cash flows
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Analysis of cash flows
11. Analysis of cash flows
 
The following tables analyse the items included within the main cash flow headings on page F-18.
 
Net cash from operating activities:
 
 
  
2019
£m
 
 
2018
£m
 
 
2017
£m
 
Profit for the year
  
 
717.9
 
 
 
1,139.4
 
 
 
1,912.3
 
Taxation
  
 
353.8
 
 
 
323.9
 
 
 
197.0
 
Revaluation of financial instruments
  
 
77.8
 
 
 
(172.9
) 
 
 
(262.2
) 
Finance costs
  
 
376.4
 
 
 
289.3
 
 
 
269.8
 
Finance and investment income
  
 
(102.6
) 
 
 
(104.8
) 
 
 
(95.2
) 
Share of results of associates
  
 
(21.2
) 
 
 
(43.5
) 
 
 
(113.5
) 
Goodwill impairment on classification as held for sale
  
 
94.5
 
 
 
–
 
 
 
–
 
Gain on sale of discontinued operations
  
 
(73.8
) 
 
 
–
 
 
 
–
 
Attributable tax expense on sale of discontinued operations
  
 
157.4
 
 
 
–
 
 
 
–
 
Adjustments for:
  
 
 
 
 
 
 
 
 
 
 
 
Non-cash
share-based incentive plans (including share options)
  
 
71.4
 
 
 
84.8
 
 
 
105.0
 
Depreciation of property, plant and equipment
  
 
203.2
 
 
 
225.1
 
 
 
230.7
 
Depreciation of
right-of-use
assets
  
 
317.9
 
 
 
–
 
 
 
–
 
Impairment of goodwill
  
 
47.7
 
 
 
183.9
 
 
 
27.1
 
Amortisation and impairment of acquired intangible assets
  
 
135.6
 
 
 
280.0
 
 
 
195.1
 
Amortisation of other intangible assets
  
 
29.6
 
 
 
38.7
 
 
 
36.3
 
Investment write-downs
  
 
7.5
 
 
 
2.0
 
 
 
95.9
 
Gains on disposal of investments and subsidiaries
  
 
(45.1
) 
 
 
(235.5
) 
 
 
(129.0
) 
(Gains)/losses on remeasurement of equity interests arising from a change in scope of ownership
  
 
(0.4
) 
 
 
(2.0
) 
 
 
0.3
 
Gain on sale of freehold property in New York
  
 
(7.9
) 
 
 
–
 
 
 
–
 
Losses on sale of property, plant and equipment
  
 
3.2
 
 
 
0.6
 
 
 
1.1
 
Decrease/(increase) in trade receivables and accrued income
  
 
159.0
 
 
 
(298.9
) 
 
 
(90.4
) 
Increase/(decrease) in trade payables and deferred income
  
 
394.7
 
 
 
500.9
 
 
 
(170.8
) 
Increase in other receivables
  
 
(263.8
) 
 
 
(52.9
) 
 
 
(110.6
) 
Decrease in other payables – short-term
  
 
(16.4
) 
 
 
(31.8
) 
 
 
(122.8
) 
Increase in other payables – long-term
  
 
53.7
 
 
 
0.4
 
 
 
20.1
 
Increase/(decrease) in provisions
  
 
23.1
 
 
 
48.0
 
 
 
(57.3
) 
Corporation and overseas tax paid
  
 
(536.0
) 
 
 
(383.6
) 
 
 
(424.7
) 
Payment on early settlement of bonds
  
 
(63.4
) 
 
 
–
 
 
 
–
 
Interest and similar charges paid
  
 
(270.6
) 
 
 
(252.8
) 
 
 
(246.6
) 
Interest paid on lease liabilities
  
 
(105.1
) 
 
 
–
 
 
 
–
 
Interest received
  
 
80.8
 
 
 
90.4
 
 
 
76.9
 
Investment income
  
 
18.3
 
 
 
15.4
 
 
 
16.8
 
Dividends from associates
  
 
33.3
 
 
 
49.7
 
 
 
46.8
 
Net cash inflow from operating activities
  
 
1,850.5
 
 
 
1,693.8
 
 
 
1,408.1
 
Acquisitions and disposals:
  
 
 
 
 
 
 
 
 
 
 
 
 
  
2019
£m
 
 
2018
£m
 
 
2017
£m
 
Initial cash consideration
  
 
(3.9
) 
 
 
(126.7
) 
 
 
(214.8
) 
Cash and cash equivalents acquired
  
 
–
 
 
 
11.3
 
 
 
28.9
 
Earnout payments
  
 
(130.2
) 
 
 
(120.2
) 
 
 
(199.1
) 
Purchase of other investments (including associates)
  
 
(27.2
) 
 
 
(48.1
) 
 
 
(92.5
) 
Acquisitions
  
 
(161.3
) 
 
 
(283.7
) 
 
 
(477.5
) 
Proceeds on disposal of investments and subsidiaries
1
  
 
2,468.5
 
 
 
849.0
 
 
 
296.0
 
Cash and cash equivalents disposed
  
 
(327.5
) 
 
 
(15.1
) 
 
 
–
 
Disposals of investments and subsidiaries
  
 
2,141.0
 
 
 
(833.9
) 
 
 
296.0
 
Cash consideration for
non-controlling
interests
  
 
(62.7
) 
 
 
(109.9
) 
 
 
(47.3
) 
Net acquisition payments and disposal proceeds
  
 
1,917.0
 
 
 
440.3
 
 
 
(228.8
) 
 
Note
1
 
 
Proceeds on disposal of investments and subsidiaries includes return of capital from investments in associates.
 
Share repurchases and
buybacks:
 
 
 
 
 
 
 
 
  
2019
£m
 
 
2018
£m
 
 
2017
£m
 
Purchase of own shares by ESOP Trusts
  
 
–
 
 
 
(102.8
) 
 
 
(214.6
) 
Shares purchased into treasury
  
 
(43.8
) 
 
 
(104.3
) 
 
 
(289.6
) 
Net cash outflow
  
 
(43.8
) 
 
 
(207.1
) 
 
 
(504.2
) 
Net (decrease)/increase in borrowings:
 
 
  
2019
£m
 
 
2018
£m
 
 
2017
£m
 
(Decrease)/increase in drawings on bank loans
  
(70.6)
 
 
(819.3)
 
 
785.6
 
Repayment of
€
600 million bonds
  
(512.7)
 
 
–
 
 
–
 
Repayment of $812 million bonds
  
(618.8)
 
 
–
 
 
–
 
Partial repayment of $272 million bonds
  
(135.4)
 
 
(20.8)
 
 
–
 
Partial repayment of $450 million bonds
  
(176.2)
 
 
(37.3)
 
 
–
 
Repayment of £200 million bonds
  
(199.5)
 
 
–
 
 
–
 
Proceeds from issue of
€
250 million bonds
  
 
–
 
 
 
218.8
 
 
 
214.0
 
Proceeds from issue of
€
500 million bonds
  
 
–
 
 
 
438.0
 
 
 
–
 
Repayment of
€
252 million bonds
  
 
–
 
 
 
(220.0
) 
 
 
–
 
Repayment of £400 million bonds
  
 
–
 
 
 
–
 
 
 
(400.0
) 
Net cash (outflow)/inflow
  
 
(1,713.2
) 
 
 
(440.6
) 
 
 
599.6
 
Cash and cash equivalents:
  
 
 
 
 
 
 
 
 
 
  
2019
£m
 
 
2018
£m
 
 
2017
£m
 
Cash at bank and in hand
  
2,105.4
 
 
2,010.8
 
 
2,049.6
 
Short-term bank deposits
  
 
863.6
 
 
 
632.4
 
 
 
341.8
 
Overdrafts
1
  
 
(235.7
) 
 
 
(442.0
) 
 
 
(393.2
) 
 
  
 
2,733.3
 
 
 
2,201.2
 
 
 
1,998.2
 
 
Note
1
 
 
Bank overdrafts are included in cash and cash equivalents because they form an integral part of the Group’s cash management.
 
The Group considers that the carrying amount of cash and cash equivalents approximates their fair value.