Barclays 2009 Annual Report Download - page 213

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 211
Cash flow statement
For the year ended 31st December 2009 2008 2007
£m £m £m
Reconciliation of profit before tax to net cash flows from operating activities:
Profit before tax 152 1,194 3,289
Changes in operating assets and liabilities:
Net decrease/(increase) in other assets 2(16) (3)
Net increase/(decrease) in other liabilities 1– (3)
Net cash from operating activities 155 1,178 3,283
Capital contribution to subsidiaries (800) (4,362) (1,434)
Purchase of shares in subsidiaries (25) (16) (316)
Liquidation of subsidiary –205 –
Net cash used in investing activities (825) (4,173) (1,750)
Issue of shares and other equity instruments 784 4,911 2,494
Dividends paid (113) (2,414) (2,129)
Repurchase of ordinary shares –(173) (1,802)
Net cash from financing activities 671 2,324 (1,437)
Net increase/(decrease) in cash and cash equivalents 1 (671) 96
Cash and cash equivalents at beginning of year –671 575
Cash and cash equivalents at end of year 1– 671
Cash and cash equivalents comprise:
Cash and balances at central banks 1– 671
Net cash from operating activities includes:
Dividends received 103 1,173 3,287
Interest received 53 74
The Parent Company’s principal activity is to hold the investment in its wholly-owned subsidiary, Barclays Bank PLC. Dividends received are treated as
operating income.
The Company was not exposed at 31st December 2009 or 2008 to significant risks arising from the financial instruments it holds; which comprised cash,
balances with central banks and other assets which had no credit or market risk.
Non-cash transactions
During 2008 Barclays Bank PLC issued £4,050m of Mandatorily Convertible Notes (MCNs), which had mandatorily converted into ordinary shares of
Barclays PLC by 30th June 2009. Barclays PLC’s right to receive the MCNs was included in other assets in 2008, with a corresponding increase, net of issue
costs, in other equity. In 2009, Barclays PLC waived its rights over the MCNs, which have been added to its cost of investment in its subsidiary.
The accompanying notes form an integral part of the accounts.