ABSTRACT

Net cash inflow from operating activities (a) 588 610 Return on investments and servicing of finance (39) (16) Interest and dividends received 82 92 Interest paid (87) (73) Preference dividends paid (34) (35) Tax paid (143) (162) Capital expenditure and financial investment (261) (173) Purchase of tangible fixed assets (276) (204) Sale of tangible fixed assets 15 18 Sale of current asset investments - 13 Acquisitions and disposals 83 (478) Purchase of subsidiaries (5) (516) Sale of subsidiary undertakings 88 38 Equity dividends paid (161) (142) Net cash inflow/(outflow) before financing 67 (361) Financing (70) (50) Equity share issues 11 11 Buy back of own shares (572) (88) Mark to market of hedging instruments (24) 33 Debt and lease financing 515 (6) Net decrease in cash in the year 3 411

10.1 Tomkins pic. Solution

Restated consolidated cash flow statement, year ended 1 May 1999 1998

£ million £ million Operating profit 496 478 Interest and dividends received 82 92 Depreciation 169 157

747 727 Interest and preference dividends paid (121) (108) Tax paid (143) (162) Equity dividends paid (161) (142)

(425) (412) Net funds from operations 322 315 Changes in working capital (77) (25) Decrease/(increase) in stocks 5 (19) Decrease/(increase) in debtors 7 (19) (Decrease)/increase in creditors (89) 13 Net cash from operations 245 290 Sale of tangible fixed assets 15 18 Sale of current asset investments - 13 Sale of subsidiary undertakings 88 38 Total cash available 348 359 Purchase of tangible fixed assets (276) (204) Purchase of subsidiaries (5) (516) Net cash inflow/(outflow) before financing 67 (361) Financing (70) (50) Equity share issues 11 11 Buy back of own shares (572) (88) Mark to market of hedging instruments (24) 33 Debt and lease financing 515 (6)

Net decrease in cash in the year 3 411

Comments 1 1999 was only marginally more profitable than 1998, with a 4 per cent

increase in operating profit. 2 Due mainly to a reduction in creditors, net working capital increased by

£52m more than in 1998. But this was balanced by an extra £50m proceeds from sale of subsidiaries. So total cash available, at £348m, was much the same as the previous year.