|
11.
FREE CASH FLOW
The components
of free cash flow, which is a non GAAP measure, are
presented in the table below and reconciled to net cash
inflow from operating activities, the most directly
comparable IFRS measure. Free cash flow is not defined
in IFRSs but is a key indicator used by management to
measure operational performance.
| |
|
|
2007 |
|
|
2006 |
|
|
2005 |
|
| |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
generated from operations before taxation
|
|
|
5,245 |
|
|
5,777 |
|
|
5,906 |
|
|
Income
taxes paid, net of repayments
|
|
|
(35 |
) |
|
(390 |
) |
|
(332 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash inflow from operating activities
|
|
|
5,210 |
|
|
5,387 |
|
|
5,574 |
|
|
Included
in cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Net
purchase of property, plant and equipment, computer
software and licences
|
|
|
(3,209 |
) |
|
(2,874 |
) |
|
(2,945 |
) |
|
Net
(purchase) sale of non current financial assets
|
|
|
(3 |
) |
|
(1 |
) |
|
537 |
|
|
Dividends
received from associates and joint ventures
|
|
|
6 |
|
|
1 |
|
|
2 |
|
|
Interest
received
|
|
|
147 |
|
|
185 |
|
|
374 |
|
|
Included
in cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
|
(797 |
) |
|
(1,086 |
) |
|
(1,260 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Free
cash flow
|
|
|
1,354 |
|
|
1,612 |
|
|
2,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
