Travelex Holdings Limited Annual report & consolidated financial ...

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52 Travelex Holdings Limited Notes to the financial statements continued for the year ended 31 December 2001 24 Cash flow from operating activities (a) Reconciliation of operating profit to operating cash flows 2001 2000 £’000 £’000 Operating profit 34,983 7,132 Depreciation charge (net of profit/loss on disposals) 14,157 2,028 Deferred interest income amortisation (35,145) – Goodwill amortisation 18,460 1,948 (Increase)/decrease in stocks (3,006) 483 Increase in debtors (361,921) (56,297) Increase in creditors 335,315 48,888 Decrease in travellers cheques awaiting redemption (17,586) – Exchange adjustment (617) (200) Net cash (outflow)/inflow from operating activities (15,360) 3,982 (b) Reconciliation to net (debt)/cash 2001 2000 £’000 £’000 (Decrease)/increase in net cash (3,095) 19,370 Cash inflow/(outflow) from short-term deposits with banks (183,278) (71,680) Cash (inflow)/outflow from finance leases 1,323 1,099 Cash (inflow)/outflow from borrowings – 31,233 Net cash (outflow)/inflow before use of liquid resources and financing (185,050) (19,978) Acquisitions of deposits 1,402,456 (35,569) Acquisition of finance leases (2,949) – Other non-cash changes (332) (138) Exchange adjustments (22) 982 1,214,103 (54,703) Net cash/(debt) at 1 January (54,703) – Net cash/(debt) at 31 December 1,159,400 (54,703)
Notes to the financial statements continued for the year ended 31 December 2001 25 Analysis of net (debt)/cash 53 Travelex Holdings Limited Acquisition At 1 (excluding Other At 31 January cash and non-cash Exchange December 2001 Cash flow overdrafts) changes movements 2001 £’000 £’000 £’000 £’000 £’000 £’000 Cash in hand and at bank 28,394 15,700 – – 8 44,102 Overdrafts (9,023) (18,795) – – (31) (27,849) (3,095) Deposits and money on call – (183,278) 1,402,456 – – 1,219,178 Debt due after one year (71,819) – – (332) – (72,151) Debt due within one year – – – – – – Finance leases (2,255) 1,323 (2,949) – 1 (3,880) 26 Acquisitions (54,703) (185,050) 1,399,507 (332) (22) 1,159,400 Acquisition of Thomas Cook Global and Financial Services Group (G&FS) The Group purchased G&FS on 27 March 2001 for a total consideration of £487,634,000. The total adjustments required to the book values of the assets and liabilities acquired in order to present the net assets at fair values in accordance with Group accounting principles were £29,026,000, details of which are set out within this note, together with the resultant amount of goodwill arising. This has been accounted for as an acquisition. From the date of acquisition to 31 December 2001 the acquisitions contributed £228,124,000 to turnover, £13,270,000 to profit before interest and amortisation, £28,211,000 to profit before interest and £23,020,000 to profit after interest. G&FS contributed an outflow of £44,931,000 to the Group’s net operating cash flows, received £270,716,000 in respect of interest, utilised £15,097,000 in respect of taxation and utilised £6,799,000 for capital expenditure. In its last financial year to 31 December 2000 G&FS made a profit after tax and minority interests of £31,586,000. For the period since that date to the date of acquisition, G&FS management accounts show: Turnover £’000 78,043 Cost of sales (36,079) Net operating expenses (32,260) Profit before interest and taxation 9,704 Net interest (1,702) Taxation and minority interests (2,629) Profit attributable to shareholders 5,373
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