Financial Analysis

Cash Flow

For the year ended 30 April 2016

Notes 2016
£m
2015
£m
Cash flows from operating activities
Cash generated by operations 30 303.7 367.7
Interest paid (32.3) (38.5)
Interest received 1.7 2.7
Dividends received from joint ventures 28.8 14.5
Net cash flows from operating activities before tax 301.9 346.4
Tax (paid)/received (23.0) (30.9)
Net cash from operating activities after tax 278.9 315.5
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired   (0.5) -
Cash inflow on inception of rail franchise   - 1.3
Purchase of property, plant and equipment   (191.2) (182.4)
Disposal of property, plant and equipment 26.5 47.9
Purchase of intangible assets (19.6) (12.5)
Movement in loans to joint ventures 5.9 (5.8)
Net cash outflow from investing activities (178.9) (151.5)
Cash flows from financing activities
Purchase of treasury shares (2.2) (2.5)
Investment in own ordinary shares by employee share ownership trusts - (3.9)
Repayments of hire purchase and lease finance (35.4) (33.2)
Redemption of 5.75% sterling bond - principal (400.0) -
Redemption of 5.75% sterling bond - exceptional items (23.3) -
Issue of new 4.00% sterling bond   393.5 -
Drawdown of other borrowings 270.0 205.9
Repayment of other borrowings   (255.2) (121.2)
Dividends paid on ordinary shares 8 (62.0) (56.3)
Sale of tokens   0.3 0.5
Redemption of tokens   (0.5) (0.8)
Net cash used in financing activities (114.8) (11.5)
Net increase/(decrease) in cash and cash equivalents (14.8) 152.5
Cash and cash equivalents at the beginning of the year 395.6 240.3
Exchange rate effects 1.5 2.8
Cash and cash equivalents at the end of year 20 382.3 395.6

Cash and cash equivalents for the purposes of the consolidated statement of cash flows comprise cash at bank and in hand, overdrafts and other shortterm highly liquid investments with maturities at the balance sheet date of twelve months or less.

The accompanying notes form an integral part of this consolidated statement of cash flows.