REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

Consolidated cash flow statement for the year ended 31 DecemberNOTES 1999 1998 1997£M £M £MNet cash inflow from operating activities 9 821 998 936Dividends received from associates 2 9 –Returns on investments and servicing of financeInterest received 50 76 79Interest paid (51) (72) (3)Income from fixed asset investments 2 3 1Net cash inflow from returns on investments and servicing of finance 1 7 77Taxation paid (167) (219) (196)Capital expenditure and financial investmentPurchase of tangible fixed assets (256) (307) (369)Sale of tangible fixed assets 1 2 1Purchase of fixed asset investments (166) (22) (21)Sale of fixed asset investments 39 34 11Net cash outflow on capital expenditure and financial investment (382) (293) (378)Acquisitions and disposals (including joint ventures and associates) 10 (27) (138) (22)Equity dividends paid (207) (188) (196)Cash inflow before management of liquid resources and financing 41 176 221Management of liquid resourcesNet decrease/(increase) in short-term investments 10 476 313 (255)FinancingReturn of surplus capital – (1,482) –Proceeds from issue of shares 25 13 22Proceeds from issue of non-equity shares in TIBCO Software Inc. – – 17Shares repurchased (25) – (21)Net (decrease)/increase in borrowings 10 (542) 972 (15)Net cash (outflow)/inflow from financing (542) (497) 3Decrease in cash 11 (25) (8) (31)1999 1998 1997£M £M £MReconciliation of net cash flow to movement in net fundsDecrease in cash (25) (8) (31)Cash outflow/(inflow) from movement in borrowings 542 (972) 15Cash (inflow)/outflow from movement in liquid resources (476) (313) 255Change in net cash resulting from cash flows 41 (1,293) 239Translation differences 3 – 1Movement in net funds/(debt) 44 (1,293) 240Opening net (debt)/funds (3) 1,290 1,050Closing net funds/(debt) 11 41 (3) 1,290Reuters Group PLC Annual Report 1999 51