Savills plc - Investor relations

NOTES TO THE ACCOUNTSyear ended 31 December 2003At 31 December At 31 December2003 200225. Finance leases - Group £'000 £'000Amounts payable under finance leases:Within one year 14 29In one to five years 35 57After five years 4 553 91Less: future finance charges (4) (8)49 83Year toYear to31 December 31 December2003 200226. Reconciliation of operating profit to net cash inflow from operating activities £'000 £'000Operating profit 36,489 29,208Depreciation charges 4,923 5,388Impairment of tangible fixed assets - 1,173Amortisation of goodwill 2,303 1,882Loss on sale of fixed assets 121 127Decrease/(increase) in property held for sale 16,575 (2,890)Increase in work in progress (82) (91)Increase in debtors (8,180) (10,398)Increase in creditors 2,726 17,574Increase in provisions 4,269 2,651Increase in provision for share options granted 951 1,159Provision against fixed asset investments 468 489Net cash inflow from operating activities 60,563 46,272Year toYear to31 December 31 December2003 200227. Reconciliation of net cash flow to net funds £'000 £'000Increase in cash 10,448 10,106Cash outflow from decrease in debt 787 7,607Capital element of finance leases repaid 26 16Increase in liquid resources 9,425 5,635Loans disposed with subsidiaries - 2,665Loan notes issued on aquisition of subsidiary - (490)Exchange movements (2,205) (1,493)18,481 24,046Net funds at beginning of year 30,498 6,452Net funds at end of year 48,979 30,49869