Consolidated cash flow statement

for the year ended 30 September 2008

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  Notes 2008
£m		 2007
£m
Cash flow from operating activities
Cash generated from operations1 28 915 756
Interest paid (104) (152)
Interest element of finance lease rentals (2) (3)
Tax received 16 4
Tax paid   (165) (121)
Net cash from/(used in) operating activities of continuing operations 660 484
Net cash from/(used in) operating activities of discontinued operations 29 2 (18)
Net cash from/(used in) operating activities   662 466
Cash flow from investing activities
Purchase of subsidiary companies and investments in associated undertakings2 27 (181) (31)
Proceeds from sale of subsidiary companies and associated undertakings - discontinued activities2 6 (17) 782
Proceeds from sale of subsidiary companies and associated undertakings - other activities2 12 32
Proceeds from sale of other investments 1 4
Tax on profits from sale of subsidiary companies and associated undertakings 45 (51)
Contribution of disposal proceeds to pension plans – (45)
Purchase of intangible assets and investments1 (73) (74)
Purchase of property, plant and equipment1 (119) (106)
Proceeds from sale of property, plant and equipment / intangibles 26 22
Dividends received from associated undertakings 5 6
Interest received   25 28
Net cash from/(used in) investing activities by continuing operations (276) 567
Net cash from/(used in) investing activities by discontinued operations 29 – (30)
Net cash from/(used in) investing activities   (276) 537
Cash flow from financing activities
Proceeds from issue of ordinary share capital 25 58 27
Purchase of own shares3 (355) (576)
Net increase/(decrease) in borrowings - excluding new leases / repayments 30 (141) (239)
Repayment of obligations under finance leases 30 (11) (15)
Equity dividends paid 9, 25 (209) (208)
Dividends paid to minority interests 25 (4) (3)
Net cash from/(used in) financing activities by continuing operations (662) (1,014)
Net cash from/(used in) financing activities by discontinued operations 29 – –
Net cash from/(used in) financing activities   (662) (1,014)
Cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents 30 (276) (11)
Cash and cash equivalents at beginning of the year 30 839 848
Currency translation gains/(losses) on cash and cash equivalents 30 16 2
Cash and cash equivalents at end of the year 30 579 839
1
Certain contract-related assets previously included in property, plant and equipment, and other receivables have been reclassified as intangible assets. The 2007 cash flow has been restated accordingly. There is no impact on the income statement.
2
Net of cash acquired or disposed and payments received or made under warranties and indemnities.
3
Share buy-back and increase/(decrease) in own shares held to satisfy employee share-based payments.

Reconciliation of free cash flow from continuing operations

for the year ended 30 September 2008

  2008
£m		 2007
£m
Net cash from operating activities of continuing operations 660 484
Purchase of intangible assets and investments (73) (74)
Purchase of property, plant and equipment (119) (106)
Proceeds from sale of property, plant and equipment / intangibles 26 22
Dividends received from associated undertakings 5 6
Interest received 25 28
Dividends paid to minority interests (4) (3)
Free cash flow from continuing operations 520 357