BT 2005 Annual Report Download - page 89

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13. Reconciliation of operating profit to operating cash flows 2005
£m
2004
£m
a
2003
£m
a
Group operating profit 2,789 2,870 2,576
Depreciation 2,834 2,921 3,011
Amortisation and impairment 22 15 24
(Increase) decrease in stocks (12) (6) 31
Decrease in debtors 206 414 764
Decrease in creditors (39) (159) (306)
Decrease (increase) in pension prepayment and increase (decrease) in pension liabilities 49 (655) (314)
(Decrease) increase in provisions (12) (49) 171
Other 61 38 66
Net cash inflow from operating activities 5,898 5,389 6,023
a
Restated – see note 1
14. Management of liquid resources 2005
£m
2004
£m
2003
£m
Purchase of short-term investments and payments into short-term
deposits over 3 months (3,043) (5,306) (3,990)
Sale of short-term investments and withdrawals from short-term
deposits over 3 months 3,754 4,467 4,082
Net movement of short-term investments and short-term
deposits under 3 months not repayable on demand (124) 1,962 (1,821)
Net cash inflow (outflow) from management of liquid resources 587 1,123 (1,729)
Movements in all short-term investments and deposits not repayable on demand are reported under the heading of
management of liquid resources.
15. Acquisitions and disposals
Acquisition of subsidiary companies and businesses
Infonet
a
Albacom
b
Other
c
Total
Year ended 31 March 2005 £m £m £m £m
Consideration:
Cash 315 93 18 426
Deferred –38 139
Total 315 131 19 465
In the period since acquisition these businesses have contributed £123 million to turnover and an operating loss of £9
million and are therefore not considered material to be shown separately on the face of the profit and loss account.
Year ended 31 March 2004
Total
d
£m
Consideration:
Cash 33
Deferred 3
Total 36
Year ended 31 March 2003
Concert
e
£m
Other
f
£m
Total
£m
Consideration:
Cash –1313
Carrying value of Concert global venture 338 – 338
Total 338 13 351
In addition, net cash of £56 million was received in settlement of the unwind of the Concert global venture.
88 BT Group plc Annual Report and Form 20-F 2005 Notes to the financial statements