Cash flow statements
| for the year ended 31 December | ||||||
|---|---|---|---|---|---|---|
| The Group | The Company | |||||
| Notes | 2007 £m |
2006 £m |
2007 £m |
2006 £m |
||
| Cash generated by operations | 30 | 3 691 | 3 360 | 24 | 11 | |
| Income taxes (paid)/received | (950) | (979) | 1 | 21 | ||
| Net cash inflow from operating activities | 2 741 | 2 381 | 25 | 32 | ||
| Cash flows from investing activities | ||||||
| Dividends received | 148 | 193 | 677 | 1 047 | ||
| Proceeds from disposal of subsidiary undertakings and investments | 461 | 9 | – | – | ||
| Proceeds from disposal of property, plant and equipment and intangible assets |
3 | 49 | – | – | ||
| Purchase of property, plant and equipment and intangible assets |
(1 718) | (1 313) | – | – | ||
| Loans (to)/from joint ventures and associates | (82) | (66) | – | – | ||
| Business combinations and investments(a) | (497) | (67) | – | – | ||
| Net cash (outflow)/inflow from investing activities | (1 685) | (1 195) | 677 | 1 047 | ||
| Cash flows from financing activities | ||||||
| Interest paid(b) | (129) | (121) | – | – | ||
| Interest received | 132 | 135 | 35 | – | ||
| Dividends paid | (264) | (246) | (264) | (246) | ||
| Dividends paid to minority | (37) | (36) | – | – | ||
| Net proceeds from issue of new borrowings(c) | 444 | 214 | – | – | ||
| Repayment of borrowings | (290) | (192) | – | – | ||
| Issue of shares | 26 | 51 | 26 | 51 | 25 | |
| Purchase of own shares | (555) | (972) | (555) | (972) | ||
| Funding movements with subsidiary | – | – | 32 | 115 | ||
| Net cash outflow from financing activities | (648) | (1 192) | (701) | (1 078) | ||
| Net increase/(decrease) in cash and cash equivalents | 408 | (6) | 1 | 1 | ||
| Cash and cash equivalents at 1 January | 18 | 1 463 | 1 516 | 1 | – | |
| Effect of foreign exchange rate changes | 10 | (47) | – | – | ||
| Cash and cash equivalents at 31 December | 18 | 1 881 | 1 463 | 2 | 1 | |
Major non-cash transactions included assets acquired during the year of £53m (2006 £199m) financed through finance lease arrangements and a provision of £156m to reflect the present obligation under retained capacity contracts in the Interconnector pipeline following the sale of the Group’s 25% equity interest in Interconnector (UK) Limited (see note 6).
- (a)
- In 2007, includes the purchase of the remaining equity (66.3%) of Serene S.p.A. (now BG Italia Power S.p.A.) net of cash acquired of £27m and the purchase of Lake Road and Masspower power plants (see note 15). In 2006, includes the purchase of the Dighton power plant and deferred consideration for the acquisition of BG Brindisi LNG S.p.A. which was acquired in 2005.
- (b)
- Includes capitalised interest of £37m (2006 £54m).
- (c)
- Includes net cash flows relating to short maturity financing items.
The accounting policies together with the notes to the accounts form part of these accounts.