Cash flow statement
For the year ended 31 December 2005
All the Company's operating and investing cash requirements are met by subsidiary companies and settled through intercompany loan accounts. As the direct method of presentation has been adopted for these activities, no further disclosure is required. In respect of financing activities, the following items pass through the Company's own bank accounts.
| 2005 | 2004 | |
| £m | £m | |
| Cash flows from financing activities | ||
| Funding provided by subsidiaries | 880 | 744 |
| Net drawdown/(repayment) of borrowings | (370) | (227) |
| Preference dividends paid | (17) | (17) |
| Ordinary dividends paid | (497) | (450) |
| Interest paid on borrowings | (25) | (27) |
| Net cash (used in)/from financing activities | (29) | 23 |
| Net (decrease)/increase in cash and cash equivalents | (29) | 23 |
| Cash and cash equivalents at 1 January | 31 | 8 |
| Cash and cash equivalents at 31 December | 2 | 31 |
Where applicable, the accounting policies of the Company are the same as those of the Group in the accounting polices section. The notes (identified alphabetically in notes to the company financial statements section) are an integral part of these separate financial statements. Where the same items appear in the Group financial statements, reference is made to the notes (identified numerically) in the notes to the consolidated financial statements section.
