Preliminary results - 12 months ended 31 December 2005
Summarised consolidated cash flow statement – IFRS basis
For the year ended 31 December 2005
The cash flows presented in this statement cover all the Group's activities and include flows from policyholder and shareholder activities.
| 2005 | 2004 | ||||
|---|---|---|---|---|---|
| Long-term business operations £m |
Non-long-term business operations £m |
Group £m |
Group £m |
||
| Of the total cash and cash equivalents shown above, £25 million has been classified as held for sale. | |||||
| Cash flows from operating activities | |||||
| Cash generated from operations | 1,717 | 1,067 | 2,784 | 2,050 | |
| Tax paid | (352) | (23) | (375) | (195) | |
| Net cash from operating activities | 1,365 | 1,044 | 2,409 | 1,855 | |
| Cash flow from investing activities: | |||||
| Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | (629) | (794) | (1,423) | (540) | |
| Disposal of subsidiaries, joint ventures and associates, net of cash transferred | 50 | 414 | 464 | 308 | |
| Loans to joint ventures and associates | (128) | - | (128) | - | |
| Purchases of property and equipment | (26) | (180) | (206) | (127) | |
| Proceeds on property and equipment | 41 | 9 | 50 | 122 | |
| Purchases of intangible assets | (44) | (16) | (60) | (5) | |
| Net cash from investing activities | (736) | (567) | (1,303) | (242) | |
| Cash flow from financing activities: | |||||
| Proceeds from issue of shares, net of transaction costs | - | 59 | 59 | 3 | |
| Proceeds from issue of direct capital instrument, net of transaction costs | - | - | - | 981 | |
| Net drawdown of borrowings | 150 | 706 | 856 | 1,526 | |
| Interest paid on borrowings | (203) | (406) | (609) | (522) | |
| Preference dividends paid | - | (17) | (17) | (17) | |
| Ordinary dividends paid | - | (498) | (498) | (450) | |
| Coupon payments on direct capital instrument | - | (42) | (42) | - | |
| Finance lease payments | - | (8) | (8) | (26) | |
| Capital contributions from minority shareholders | 204 | 8 | 212 | 4 | |
| Dividends paid to minority interests of subsidiaries | - | (70) | (70) | (41) | |
| Non-trading cash flows between operations | 302 | (302) | - | - | |
| Net cash from financing activities | 453 | (570) | (117) | 1,458 | |
| Total cash flow | 1,082 | (93) | 989 | 3,071 | |
| Net increase/(decrease) in cash and cash equivalents | 1,082 | (93) | 989 | 3,071 | |
| Cash and cash equivalents at 1 January | 9,087 | 3,039 | 12,126 | 9,023 | |
| Effect of exchange rate changes on cash and cash equivalents | (62) | 14 | (48) | 32 | |
| Cash and cash equivalents at 31 December | 10,107 | 2,960 | 13,067 | 12,126 | |
| Cash and cash equivalents at 31 December comprised: | |||||
| Cash at bank and in hand | 2,346 | 1,184 | 3,530 | 1,631 | |
| Cash equivalents | 7,875 | 2,352 | 10,227 | 11,148 | |
| 10,221 | 3,536 | 13,757 | 12,779 | ||
| Bank overdrafts | (114) | (576) | (690) | (653) | |
| 10,107 | 2,960 | 13,067 | 12,126 | ||
