£ MillionsNote20182017
Cash flows from operating activities
Profit after tax30.428.6
Adjustments for:
– Income tax expense87.23.6
– Amortisation and depreciation79.15.9
– Finance charge61.70.3
– Equity award charges50.80.4
– Fair value loss/(gain) on derivative financial instruments0.5(0.5)
– Unrealised currency translation loss/(gain)2.7(2.9)
Change in working capital, net of effects from acquisitions:
– Inventories(16.4)(2.5)
– Trade and other receivables(5.6)(1.6)
– Trade and other payables(0.1)5.3
– Provision for liabilities and other charges0.5(0.8)
Cash generated from operations30.835.8
Income tax paid, net of refund8(4.1)(6.1)
Net cash provided by operating activities26.729.7
Cash flows from investing activities
Acquisition of a business, net of cash acquired31(35.5)(18.2)
Purchases and construction of property, plant and equipment13(7.9)(4.9)
Capitalisation of research and development expenditure12(6.2)(5.2)
Capitalisation of intangible software and software under development(0.9)
Proceeds from disposal of property, plant and equipment0.10.4
Repayment of ESOP loans0.10.4
Payment of accrued consideration(0.5)
Net cash used in investing activities(50.3)(28.0)
Cash flows from financing activities
Proceeds from borrowings39.425.2
Repayment of borrowings(3.4)(5.4)
Sale of treasury shares0.51.0
Purchase of treasury shares by ESOP(1.6)
Interest paid(1.5)(0.2)
Dividend paid to equity holders of the Company9(15.3)(14.0)
Dividend paid to non-controlling interests(0.3)(0.2)
Net cash provided by financing activities19.44.8
Net (decrease)/increase in cash and cash equivalents(4.2)6.5
Cash and cash equivalents at beginning of financial year15.09.2
Effects of currency translation on cash and cash equivalents0.7(0.7)
Cash and cash equivalents at end of financial year1511.515.0
Reconciliation of liabilities arising from financing activities:
Bank borrowings
At 1 January24.05.5
Principal and interest payments(4.9)(5.6)
Proceeds from borrowings39.425.2
Non-cash changes:
– Accrued interest expenses1.50.2
– Foreign exchange movement3.5(1.3)
At 31 December63.524.0

The accompanying notes form an integral part of these financial statements.