annual report 2007 - the Admiral Group plc

ADMIRAL GROUP plc 53Consolidated cash flow statement31December200731December2006Note £000 £000Profit after tax 127,416 103,722Adjustments for non-cash items:- Depreciation 3,227 2,489- Amortisation of software 725 446- Unrealised gains on investments (1,123) (624)- Share scheme charge 25 5,560 2,667Loss on disposal of property, plant and equipment andsoftware 6 151Change in gross insurance contract liabilities 68,635 40,295Change in reinsurance assets (56,979) (20,523)Change in trade and other receivables, including frompolicyholders (14,772) (23,150)Change in trade and other payables, including tax andsocial security 25,506 33,652Interest expense 284 1,018Taxation expense 54,682 43,620Cash flows from operating activities, before movementsin investments 213,167 183,763Net cash flow into investments held at fair value (76,849) (1,073)Cash flows from operating activities, net of movements ininvestments 136,318 182,690Interest payments (284) (1,018)Taxation payments (49,477) (40,931)Financial statements 43 - 94Net cash flow from operating activities 86,557 140,741Cash flows from investing activities:Purchases of property, plant and equipment and software (5,390) (6,046)Net cash used in investing activities (5,390) (6,046)Cash flows from financing activities:Repayments of borrowings - (22,000)Capital element of new finance leases 457 1,519Repayment of finance lease liabilities (1,506) (2,970)Equity dividends paid (116,016) (70,104)Net cash used in financing activities (117,065) (93,555)Net (increase) / decrease in cash and cash equivalents (35,898) 41,140Cash and cash equivalents at start of period 191,242 150,152Effects of changes in foreign exchange rates 429 (50)Cash and cash equivalents at end of period 21 155,773 191,242