£ Millions | Note | 2018 | 2017 |
Cash flows from operating activities | | | |
Profit after tax | | 30.4 | 28.6 |
Adjustments for: | | | |
– Income tax expense | 8 | 7.2 | 3.6 |
– Amortisation and depreciation | 7 | 9.1 | 5.9 |
– Finance charge | 6 | 1.7 | 0.3 |
– Equity award charges | 5 | 0.8 | 0.4 |
– Fair value loss/(gain) on derivative financial instruments | | 0.5 | (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 charges | | 0.5 | (0.8) |
Cash generated from operations | | 30.8 | 35.8 |
Income tax paid, net of refund | 8 | (4.1) | (6.1) |
Net cash provided by operating activities | | 26.7 | 29.7 |
Cash flows from investing activities | | | |
Acquisition of a business, net of cash acquired | 31 | (35.5) | (18.2) |
Purchases and construction of property, plant and equipment | 13 | (7.9) | (4.9) |
Capitalisation of research and development expenditure | 12 | (6.2) | (5.2) |
Capitalisation of intangible software and software under development | | (0.9) | – |
Proceeds from disposal of property, plant and equipment | | 0.1 | 0.4 |
Repayment of ESOP loans | | 0.1 | 0.4 |
Payment of accrued consideration | | – | (0.5) |
Net cash used in investing activities | | (50.3) | (28.0) |
Cash flows from financing activities | | | |
Proceeds from borrowings | | 39.4 | 25.2 |
Repayment of borrowings | | (3.4) | (5.4) |
Sale of treasury shares | | 0.5 | 1.0 |
Purchase of treasury shares by ESOP | | – | (1.6) |
Interest paid | | (1.5) | (0.2) |
Dividend paid to equity holders of the Company | 9 | (15.3) | (14.0) |
Dividend paid to non-controlling interests | | (0.3) | (0.2) |
Net cash provided by financing activities | | 19.4 | 4.8 |
Net (decrease)/increase in cash and cash equivalents | | (4.2) | 6.5 |
Cash and cash equivalents at beginning of financial year | | 15.0 | 9.2 |
Effects of currency translation on cash and cash equivalents | | 0.7 | (0.7) |
Cash and cash equivalents at end of financial year | 15 | 11.5 | 15.0 |
Reconciliation of liabilities arising from financing activities: | | | |
Bank borrowings | | | |
At 1 January | | 24.0 | 5.5 |
Principal and interest payments | | (4.9) | (5.6) |
Proceeds from borrowings | | 39.4 | 25.2 |
Non-cash changes: | | | |
– Accrued interest expenses | | 1.5 | 0.2 |
– Foreign exchange movement | | 3.5 | (1.3) |
At 31 December | | 63.5 | 24.0 |