ANNUAL REPORT 2001 - Prudential plc
ANNUAL REPORT 2001 - Prudential plc
ANNUAL REPORT 2001 - Prudential plc
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CONSOLIDATED CASH FLOW STATEMENT<br />
YEAR ENDED 31 DECEMBER <strong>2001</strong><br />
<strong>2001</strong> 2000<br />
Note £m £m<br />
Operations<br />
Net cash inflow from operations 33 51 398<br />
Servicing of finance<br />
Interest paid on core structural shareholder borrowings (103) (119)<br />
Tax<br />
Tax (paid) recovered (44) 138<br />
Acquisitions, disposals and similar items<br />
Net cash (outflow) inflow from:<br />
Acquisition of subsidiary undertakings 33 (182) (167)<br />
Merger break fee received 8 338 –<br />
Flotation of Egg and business disposals – 195<br />
Net cash inflow from acquisitions, disposals and similar items 156 28<br />
Equity dividends<br />
Equity dividends paid (494) (461)<br />
Net cash outflow before financing (434) (16)<br />
Financing<br />
Issue of debenture loans 31 649 –<br />
Redemption of loan notes 31 (9) (114)<br />
Movement on credit facility utilised by investment subsidiaries managed by US fund management operation 33 404 (31)<br />
Issues of ordinary share capital (net of expenses and related transfer to share ownership trust) 33 42 184<br />
Net cash inflow from financing 1,086 39<br />
Net cash inflow for the year 652 23<br />
The net cash inflow was invested as follows:<br />
Portfolio investments<br />
Purchases:<br />
Ordinary shares 20 9<br />
Fixed income securities 2,416 146<br />
2,436 155<br />
Sales:<br />
Ordinary shares (155) (71)<br />
Fixed income securities (504) (246)<br />
(659) (317)<br />
Net purchases (sales) of portfolio investments 33 1,777 (162)<br />
(Decrease) increase in cash and short-term deposits, net of overdrafts 33 (1,125) 185<br />
In accordance with FRS 1, this statement shows only the cash flows of general business and shareholders’ funds.<br />
652 23<br />
43 <strong>Prudential</strong> <strong>plc</strong> Annual Report <strong>2001</strong>