Annual Report Uniphar_Accounts_2016 | Page 82

Notes to the Financial Statements Notes to the Financial Statements continued continued 28 Employee share awards 30 Reconciliation of net cash flow to movement in net debt Long term incentive plan As set out in note 23, the Company operates a long term incentive plan for certain executive directors and managerial employees under which conditional shares have been granted, subject to the achievement of demanding Group performance measures and operational targets. The Company can redeem these shares if certain criteria are not met. 2016 €’000 Increase/(decrease) in cash and overdrafts in the year 2015 €’000 15,730 Cash related exceptional items (7,599) (2,862) 11,153 12,868 Depreciation 2,919 2,444 Amortisation of computer software 3,022 2,813 Decrease/(increase) in inventory 1,280 (875) Decrease in receivables 1,886 6,111 Increase in payables 7,960 6,299 (736) (30) 27,484 29,630 Operating profit before operating exceptional items 5,458 9,803 Cash related exceptional items (4,041) (4,055) 1,417 5,748 98 95 (18,498) 3,021 4,094 9,041 (557) - (13,446) 17,905 Increase in payables Foreign currency translation adjustments Cash (outflow)/inflow from operating activities 7,709 32,051 3,952 Debt acquired during the year (note 31) (14,635) (11) 2,421 - 19,837 3,941 Net debt at beginning of year (65,926) (69,867) Net debt at end of year (46,089) (65,926) (5,528) 4,247 COMPANY (Decrease)/increase in cash and overdrafts in the year Cash flow from movement in borrowings Debt acquired during the year (note 31) - 4,247 - - (5,528) 4,247 Net debt at beginning of year (5,443) (9,690) (10,971) (5,443) Net debt at end of year 1 January 2016 €’000 Cash flow €’000 Acquisitions Disposals €’000 €’000 31 December 2016 €’000 13,781 3,322 - - 17,103 Bank loans repayable within one year (56,469) 12,920 (841) 796 (43,594) 31 Analysis of changes in net debt GROUP Bank loans payable after one year (23,238) 15,809 (13,794) 1,625 (19,598) Bank loans (79,707) 28,729 (14,635) 2,421 (63,192) Net debt (65,926) 32,051 (14,635) 2,421 (46,089) 9,557 (5,528) - (3,750) Bank loans payable after one year (15,000) 3,750 Bank loans (15,000) - (5,443) (5,528) COMPANY Cash and cash equivalents Bank loans repayable within one year Net debt 80 | Annual Report 2016 - (5,528) Movement in net debt in the year Cash and cash equivalents COMPANY (Increase)/decrease in receivables 28,729 (Decrease)/increase in net debt resulting from cash flows 18,752 Depreciation (3,757) Cash flow from movement in borrowings Movement in net debt in the year Operating profit before operating exceptional items Cash inflow from operating activities 3,322 Decrease in net debt resulting from cash flows Debt disposed of during the year (note 31) GROUP Foreign currency translation adjustments 2015 €’000 GROUP  As at 31 December 2016, the Company has allotted 8,884,512 ordinary shares of €0.08 each (2015: 8,884,512 shares) to members of the Uniphar executive management team under the long term incentive plan. The shares were allotted for an issue price of €0.08 per ordinary share. As at 31 December 2016, 1,184,602 shares (2015: 1,184,602 shares) have been called up and fully paid. As at 31 December 2016, the Company has in issue 7,699,910 (2015: 7,699,910 shares) partly paid ordinary shares of €0.08 each. Until the vesting conditions are met, these shares are partly paid at €0.02 per share pending further calls by the Company. No charge to the Income Statement arises in either 2016 or 2015 in respect of this arrangement because the fair value is deemed to be the same as the nominal value. 29 Reconciliation of operating profit to cash flow from operating activities 2016 €’000 4,029 - - (3,750) - - (15,000) (11,250) (10,971) Annual Report 2016 | 81