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  Pearson Annual Report 1997    

Notes to the Accounts

   
 

25. Notes to consolidated statement of cash flow

 

  1997 1996
All figures millions Total Continuing Discontinued Total
A) Reconciliation of operating profit to
net cash inflow from operating activities
       
Operating profit 323.2 147.6 33.7 181.3
Depreciation charges 65.2 56.8 6.4 63.2
Share of profit of partnerships and
associated undertakings
(41.8) (53.1) - (53.1)
Dividends from partnerships and
associated undertakings
39.5 33.5 - 33.5
Decrease in stocks 4.8 4.6 1.9 6.5
(Incraese)/ decrease in debtors (138.6) 21.8 (1.0) 20.8
(Decrease)/ increase in creditors (4.3) 59.9 1.0 60.9
(Decrease)/ increase in operating provisions (3.5) 1.6 (3.5) (1.9)
Exchange adjustments (5.9) (7.7) - (7.7)
Other 5.6 (10.6) (1.7) (12.3)





Net cash inflow from operating activities* 244.2 254.4 36.8 291.2





Purchase of fixed assets and finance leases (111.1) (85.9) (5.0) (90.9)
Sale of operating tangible fixed assets 14.1 6.5 0.4 6.9
Other 11.6 10.0 1.8 11.8





Operating cash flow 158.8 185.0 34.0 219.0





Note: *Net cash inflow for 1997 includes a 9.4m outflow relating to exceptional items charged in 1997 and a 11.4m outflow relating to exceptional items charged in prior years.









All figures in millions Cash at
bank and
in hand
Over-
drafts
Sub-
total
Current
asset
investments
Debt due
within
one year
Debt due
after
one year
Total
B) Analysis of net debt              
At 31 December 1996 138.8 (68.6) 70.2 160.2 (105.6) (555.2) (430.4)
Exchange differences (8.1) (11.3) (19.4) 0.2 (0.9) (1.9) (22.0)
Acquired qith subsidiary* - - - - (53.6) (66.4) (120.0)
Transfers - - - - (7.9) 7.9 -
Net cash flow 13.0 57.4 70.4 (89.3) (122.6) 6.8 (134.7)








At 31 December 1997 143.7 (22.5) 121.2 71.1 (290.6) (608.8) (707.1)








At 31 December 1995 155.5 (50.7) 104.8 516.5 (210.3) (474.4) (63.4)
Exchange differences (8.2) 6.8 (1.4) (4.9) 19.6 23.2 36.5
Net cash flow (8.5) (24.7) (33.2) 351.4) 85.1 (104.0) (403.5)








At 31 December 1996 138.8 (68.6) 70.2 160.2 (105.6) (555.2) (430.4)








Note: *Excluding cash and overdrafts.

 

  1997 1996
All figures in millions    
C) Reconciliation of net cash flow to movement in net debt    
Decrease/ (increase) in net debt from net cash flow 70.4 (33.2)
(Increase) in debt from management of liquid resources (89.3) (351.4)
(Increase) in debt from other borrowings (115.8) (18.9)
Acquired with subsidiary (120.0) -
Exchange differences (22.0) 36.5
     
Movement in debt in the year (276.7) (367.0)
Net debt at beginning of year (430.4) (63.4)
     
Net debt at end of year (707.1) (430.4)
     

D) Tax paid includes 3.5m of credits (1996: 30.1m) relating to items excluded from operating profit.

1997 Annual Report
* Group summary
* Information
* Education
* Entertainment
* Investment banking
* Chairman's statement
* Chief Executive's review
* Financial Review
* Financial Policy
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Note of historical cost profits and losses
* Reconciliation of movements in equity shareholders' funds
* Principal subsidiaries and associates
* Five year summary
* Shareholder information
   
* Notes to the accounts
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