Carphone Warehouse 2001 Annual Report Download - page 52

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24 Analysis of cash flows (continued)
h. Reconciliation of net cash inflow (outflow) to movements in net funds (debt)
2001 2000
£’000 £’000
Increase (decrease) in cash in the period 47,356 (8,733)
Cash outflow (inflow) from decrease (increase) in loans 18,667 (11,425)
Cash (inflow) outflow from (inception) repayment of finance leases (179) 224
Cash inflow from decrease in short-term deposits (196) (7,296)
Change in net funds 65,648 (27,230)
Loans acquired with subsidiary undertakings (2,884) (309)
Currency retranslation –959
Movement in net funds in the period 62,764 (26,580)
Net (debt) funds brought forward (6,218) 20,362
Net funds (debt) carried forward 56,546 (6,218)
i. Acquisitions
Companies acquired in the period contributed to £1.4m to the Group’s net operating cash flows and utilised £1.8m for capital expenditure.
j. Discontinued activities
2001 2000
£’000 £’000
Net cash inflow from operating activities comprises:
Continuing operating activities 43,663 46,900
Discontinued operating activities –(2,425)
43,663 44,475
k. Major non-cash transactions
The Group acquired various minority interests in the Group in consideration for shares in the Company, as disclosed in note 12a. In addition, the
Group sold its wireless internet investments, valued at £41.9m, to an externally managed fund, in consideration for an interest in that fund.
25 Commitments under operating leases
Land and buildings Other
2001 2000 2001 2000
Group £’000 £’000 £’000 £’000
Operating leases which expire:
Within one year 1,652 5,590 –520
In two to five years 7,604 7,742 7–
After five years 24,558 14,529 45 –
33,814 27,861 52 520
There are no Company only operating leases.
26 Capital commitments
2001 2000
£’000 £’000
Expenditure contracted, but not provided for in the financial statements of the Group 4,184 1,872
27 Pension arrangements
The Group provides various schemes for the benefit of a significant number of its employees:
Defined benefit schemes
The most recent actuarial valuation was as at 6 April 2001. The market value of the scheme’s assets at 6April 2001 was £7,776,000. The
actuarial value of these assets represented 104% of the benefits that had accrued to members, after allowing for expected future increases
in pensionable salaries. The main assumptions were an annualised gross redemption yield of 8% for conventional gilts and 3.85% for
index-linked gilts, an interest rate of 2.7% above inflation for indexed pensions and a long-term interest rate for deferred pensioners with
preserved benefits of 8% per annum. The winding up of the scheme commenced on 5April 2000. The pension charge, calculated on the same
assumptions as used for the actuarial valuation, amounts to £75,000 (2000 – £277,000).
Notes to the financial statements continued
50 The Carphone Warehouse Group PLC Annual Report 2001