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110 Financial Statements
Notes to the Financial Statements
Continued
The Company opening reserves balances have been restated to take into account the effect of the implementation of IFRIC 11,
IFRS 2 – Group and Treasury Share Transactions. This adjustment had no effect on the Group.
34. Cash generated from continuing operations
Group
Company
2008 2007 2008 2007
£m £m £m £m
Profit for the year 68.6 54.9 68.7 4.9
Adjustments for:
Income tax (note 8) 23.3 15.2 – –
Finance income (note 7) (9.8) (9.0) (0.8) –
Finance cost (note 7) 5.5 5.4 – –
Share of post-tax profit from Joint Ventures (note 4) (0.9) (2.8) – –
Depreciation charges 19.3 18.8 – –
Amortisation charges 11.1 11.6 – –
Release of deferred income (3.0) (0.2) – –
Share-based payment charge (note 32) 8.6 5.1 – –
Result on disposal of property, plant and equipment 0.1 (0.1) – –
Dividends received – – (10.9) –
Profit on disposal of subsidiaries – – (57.7) –
Movement in provisions (note 28) (5.5) 8.5 – –
Movement in inventories (note 21) 0.1 (0.2) – –
Movement in trade and other receivables (note 22) (37.2) 4.3 0.1 13.4
Movement in payables (note 26) 32.5 3.3 56.3 (0.6)
Movement in pensions (note 29) (31.8) (20.9) – –
Cash generated from continuing operations 80.9 93.9 55.7 17.7
35. Analysis of net funds
At 31 March Cash Other non- Exchange At 31 March
2007 flow cash changes movement 2008
£m £m £m £m £m
Cash and cash equivalents 187.7 (32.6) – (0.6) 154.5
Loan notes receivable – – 5.6 – 5.6
Financial assets at fair value through profit or loss 49.6 (19.9) – – 29.7
Borrowings due within one year (0.4) 0.2 (4.0) – (4.2)
Borrowings due after one year (23.1) 17.6 2.6 (0.3) (3.2)
Finance leases (14.7) 4.7 (4.0) – (14.0)
Net funds 199.1 (30.0) 0.2 (0.9) 168.4
36. Contingent liabilities
The Group has given indemnities in respect of overseas office overdrafts, performance bonds, advance payment bonds, Letters of Credit
and import duty guarantees issued on its behalf. The amount outstanding at 31st March 2008 was £73.1m (2007: £80.6m) including
£25.0m in respect of Metronet (2007: £44.3m). During the year no additional Letters of Credit were issued to Metronet whilst £19.3m
of the original Letters of Credit under the Shareholder Agreement were released. This resulted in a net movement of £19.3m. The
indemnities, which arose in the ordinary course of business, are not expected to result in any material financial loss.
WS Atkins plc Annual Report 2008