33. Cash generated from operations
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All figures in £ millions |
Notes | 2017 | 2016 | 2015 | ||||||||||||
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Profit/(loss) |
408 | (2,335 | ) | 823 | ||||||||||||
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Adjustments for: |
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Income tax |
13 | (222 | ) | (24 | ) | |||||||||||
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Depreciation |
10 | 90 | 95 | 75 | ||||||||||||
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Amortisation and impairment of acquired intangibles and goodwill |
11 | 138 | 2,733 | 1,051 | ||||||||||||
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Amortisation of software |
11 | 85 | 84 | 74 | ||||||||||||
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Net finance costs |
6 | 30 | 60 | 29 | ||||||||||||
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Share of results of joint ventures and associates |
12 | (78 | ) | (97 | ) | (68 | ) | |||||||||
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Profit on disposal of subsidiaries, associates, investments and fixed assets |
(116 | ) | 40 | (1,194 | ) | |||||||||||
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Net foreign exchange adjustment from transactions |
(26 | ) | 43 | 22 | ||||||||||||
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Share-based payment costs |
26 | 33 | 22 | 26 | ||||||||||||
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Pre-publication |
(35 | ) | (19 | ) | (57 | ) | ||||||||||
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Inventories |
24 | 17 | 10 | |||||||||||||
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Trade and other receivables |
133 | 156 | (99 | ) | ||||||||||||
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Trade and other liabilities |
6 | 61 | (80 | ) | ||||||||||||
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Retirement benefit obligations |
(232 | ) | (106 | ) | (57 | ) | ||||||||||
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Provisions for other liabilities and charges |
(11 | ) | (10 | ) | (13 | ) | ||||||||||
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Net cash generated from operations |
462 | 522 | 518 | |||||||||||||
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Net cash generated from operations is translated at an exchange rate approximating the rate at the date of cash flow. The difference between this rate and the average rate used to translate profit gives rise to a currency adjustment in the reconciliation between net profit and net cash generated from operations. This adjustment reflects the timing difference between recognition of profit and the related cash receipts or payments.
In the cash flow statement, proceeds from sale of property, plant and equipment comprise:
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All figures in £ millions |
2017 | 2016 | 2015 | |||||||||
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Net book amount |
12 | 9 | 6 | |||||||||
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Loss on sale of property, plant and equipment |
(12 | ) | (5 | ) | (4 | ) | ||||||
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Proceeds from sale of property, plant and equipment |
— | 4 | 2 | |||||||||
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The movements in the Group’s current and non-current borrowings are as follows:
| 2016 | Financing cash flows |
Foreign exchange movements |
Fair value and other movements |
2017 | ||||||||||||||||
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Financial liabilities |
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Non-current borrowings |
2,517 | (1,292 | ) | (149 | ) | (10 | ) | 1,066 | ||||||||||||
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Current borrowings |
9 | (7 | ) | (1 | ) | 3 | 4 | |||||||||||||
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Total |
2,526 | (1,299 | ) | (150 | ) | (7 | ) | 1,070 | ||||||||||||
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| 2015 | Financing cash flows |
Foreign exchange movements |
Fair value and other movements |
2016 | ||||||||||||||||
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Financial liabilities |
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Non-current borrowings |
2,106 | (3 | ) | 416 | (2 | ) | 2,517 | |||||||||||||
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Current borrowings |
247 | (248 | ) | 5 | 5 | 9 | ||||||||||||||
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Total |
2,353 | (251 | ) | 421 | 3 | 2,526 | ||||||||||||||
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Non-current borrowings include bonds, derivative financial instruments and finance leases. Current borrowings include loans repayable within one year and finance leases, but exclude overdrafts classified within cash and cash equivalents.