Summarised consolidated cash flow statement - IFRS basis
For the six months to 30 June 2008
The cash flows presented in this statement cover all the Group's activities and include flows from policyholder and shareholder activities.
| 6 months 2008 |
Restated 6 months 2007 |
Restated Full year 2007 |
|||
|---|---|---|---|---|---|
| Long-term business operations £m |
Non- long-term business operations £m |
Group £m |
Group £m |
Group £m |
|
| Cash flows from operating activities | |||||
| Cash generated from operations* | 2,793 | 847 | 3,640 | 2,159 | 4,934 |
| Tax paid | (358) | (76) | (434) | (300) | (801) |
| Net cash from operating activities | 2,435 | 771 | 3,206 | 1,859 | 4,133 |
| Cash flows from investing activities: | |||||
| Acquisition of subsidiaries, joint ventures and associates, net of cash acquired | (247) | (70) | (317) | (359) | (769) |
| Disposal of subsidiaries, joint ventures and associates, net of cash transferred | 65 | - | 65 | 272 | 283 |
| Purchase of minority interest in subsidiary | (81) | - | (81) | - | - |
| Loans to joint ventures and associates | - | - | - | 184 | 33 |
| Purchases of property and equipment | (22) | (68) | (90) | (72) | (227) |
| Proceeds on sale of property and equipment | 5 | 1 | 6 | 39 | 93 |
| Purchases of intangible assets | - | - | - | (29) | (48) |
| Net cash (used in)/from investing activities | (280) | (137) | (417) | 35 | (635) |
| Cash flows from financing activities: | |||||
| Proceeds from issue of ordinary shares, net of transaction costs | - | 31 | 31 | 30 | 48 |
| New borrowings drawn down, net of expenses | 279 | 2,695 | 2,974 | 3,690 | 6,322 |
| Repayment of borrowings | (377) | (2,516) | (2,893) | (3,483) | (6,000) |
| Net drawdown of borrowings | (98) | 179 | 81 | 207 | 322 |
| Interest paid on borrowings | (364) | (340) | (704) | (446) | (1,208) |
| Preference dividends paid | - | (9) | (9) | (9) | (17) |
| Ordinary dividends paid | - | (385) | (385) | (340) | (500) |
| Coupon payments on direct capital instrument | - | - | - | - | (53) |
| Finance lease payments | - | (1) | (1) | (1) | (7) |
| Capital contributions from minority shareholders | 105 | 5 | 110 | 75 | 307 |
| Dividends paid to minority interests of subsidiaries | (63) | (12) | (75) | (63) | (66) |
| Non-trading cash flows between operations | (623) | 623 | - | - | - |
| Net cash (used in)/from financing activities | (1,043) | 91 | (952) | (547) | (1,174) |
| Net increase in cash and cash equivalents | 1,112 | 725 | 1,837 | 1,347 | 2,324 |
| Cash and cash equivalents at 1 January | 11,132 | 4,432 | 15,564 | 12,635 | 12,635 |
| Effect of exchange rate changes on cash and cash equivalents | 472 | 48 | 520 | (1) | 605 |
| Cash and cash equivalents at 30 June/31 December | 12,716 | 5,205 | 17,921 | 13,981 | 15,564 |
| Cash and cash equivalents at 30 June/31 December comprised: | |||||
| Cash at bank and in hand | 7,546 | 1,286 | 8,832 | 4,817 | 4,004 |
| Cash equivalents | 5,567 | 4,795 | 10,362 | 9,790 | 12,181 |
| 13,113 | 6,081 | 19,194 | 14,607 | 16,185 | |
| Bank overdrafts | (397) | (876) | (1,273) | (626) | (621) |
| 12,716 | 5,205 | 17,921 | 13,981 | 15,564 | |
* Cash generated from operations is stated after net purchases/sales of investment property, loans and financial investments.
Of the total cash and cash equivalents shown above, £411 million has been classified as held for sale (30 June 2007: £73 million; 31 December 2007: £96 million).
Cash and cash equivalents in long-term business operations are primarily held for the benefit of policyholders and so are generally not available for use by the Group.
