Annual Report 2016 | Page 60

Annual Report 2016
Annual Report 2016

Notes to the Consolidated Cash Flow Statement

For the year ended 31 March 2016
( a ) Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities
2016
2015
( as restated )
£’ 000
£’ 000
£’ 000
£’ 000
Total operating profit
51,036
44,253
Depreciation
24,991
23,527
Amortisation of goodwill
4,328
3,729
Amortisation of capital contributions
( 2,283 )
( 2,207 )
Defined benefit pension scheme current service cost ( employer )
—
1,723
Defined benefit pension scheme contributions ( employer )
( 2,194 )
( 4,556 )
Exceptional operating item - pension curtailment gain
( 3,581 )
—
Profit on disposal of tangible fixed assets
( 1,117 )
( 262 )
20,144
21,954
Decrease in stocks
104
86
Increase in debtors
( 4,000 )
( 6,094 )
( Decrease ) / increase in creditors
( 1,266 )
13,881
( 5,162 ) 7,873 Net cash inflow from operating activities 66,018 74,080
( b ) Reconciliation of Movement in Net Debt
2016
2015
£’ 000
£’ 000
Increase / ( decrease ) in cash
9,160
( 3,496 )
( Increase ) / decrease in drawings on short-term bank loans
( 8,200 )
9,109
960 5,613
Finance lease repayments ( cash )
233
643
Repayment of bank term loans
26,500
—
Issue of bank term loans
( 30,000 )
—
Payment of bank term loan issue costs
145
—
Bank term loan issue cost amortisation ( non-cash )
( 289 )
( 253 )
Private placement issue cost amortisation ( non-cash )
( 95 )
( 95 )
Repayment of irredeemable debenture stock ( cash )
—
27
Movement on index-linked debt ( non-cash )
( 6,068 )
( 5,875 )
( Increase ) / reduction in net debt in the year
( 8,614 )
60
Net debt brought forward
( 349,696 )
( 349,756 )
Net debt carried forward ( 358,310 ) ( 349,696 )
( c ) Analysis of Net Debt
Balance at
Balance at
1 April
Acquisitions
Non-Cash
31 March
2015
and Disposals
Cash Flow
Movements
2016
£’ 000
£’ 000
£' 000
£' 000
£’ 000
Cash at bank and in hand
4,651
226
8,934
—
13,811
Drawings on short-term bank loans
—
—
( 8,200 )
—
( 8,200 )
4,651
226
734
—
5,611
Irredeemable debenture stock
( 1,652 )
—
—
—
( 1,652 )
Index-linked debt ( net of issue costs )
( 205,978 )
—
—
( 6,068 )
( 212,046 )
Bank term loans ( net of issue costs )
( 105,438 )
—
( 3,355 )
( 289 )
( 109,082 )
Private placement loan notes ( net of issue costs )
( 40,654 )
—
—
( 95 )
( 40,749 )
Obligations under finance leases and hire-purchase contracts
( 625 )
—
233
—
( 392 )
Net debt ( 349,696 ) 226 ( 2,388 ) ( 6,452 ) ( 358,310 )
Non-cash movements represent indexation , amortisation of issue costs , amortisation of the discount / premium on index-linked debt . The book value of net debt detailed above differs from the value used for covenant reporting purposes of £ 339,903,000 ( 2015 : £ 335,529,000 ). Index-linked debt used for covenant reporting purposes is the indexed principal whereas , in accordance with applicable accounting standards , the book value represents amortised cost . Also , bank loans and private placement loan notes for covenant reporting purposes are reported at principal value before costs whereas the book value above includes un-amortised costs .
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