Vodafone 1998 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 1998 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

Vodafone Report and Accounts - Financial Review
Cash flows and net borrowings
Net cash flow generated from operating activities increased by £258.5m to
£886.4m and was used mainly to fund capital expenditure of £491.5m
primarily to enhance and expand the digital networks in the UK, Australia and
Greece, pay tax of £162.9m and finance interest and dividends of £43.4m and
£124.1m respectively. Net new investments of £364.4m comprised a cash
outflow of £463.6m in respect of acquisitions offset by a cash inflow of £99.2m
from business disposals. Acquisitions comprise international equity
investments and shareholder loans advanced and were financed principally
by debt. As a result, net borrowings increased by £436.4m to £1,117.0m.
Proportionate operating cash flow, defined as operating profit plus
depreciation and adjusted for working capital movements, increased to
£972m, up 22%, with more than 80% of the growth being generated
organically. This includes the proportional results of SFR and E-Plus as trade
investments.
Future investment
The Group expects to spend approximately £700m on capital expenditure in
1998/99. About half of this expenditure will be in the UK, where capacity
continues to be added to the digital network to accommodate growth in
customer numbers and traffic generated by visitors. The balance will be
expended on the digital networks in the Netherlands, Australia and Greece to
enhance capacity and maintain a high quality of service. Investment
expenditure will be in the order of £100m mainly in respect of the Egyptian
consortium, Misrfone. Investments could be higher if suitable acquisition
opportunities arise.
http://www.vodafone.com/download/investor/reports/annual98/financialreview/cashflows.html29/03/2007 23:09:10