Note

2008
£000

2007
£000

Operating activities

Profit from operations

Adjustments for:

Depreciation and amortisation of tangible and intangible assets

Loss on disposal of property, plant and equipment

Compensation charge in respect of share-based payments

Impairment of available-for-sale investments

Provision for doubtful debts

Provision for obsolescence of inventories

Movement in fair value of currency exchange contracts

Changes in working capital

Accounts receivable

Inventories

Prepaid expenses and other assets

Accounts payable

Deferred revenue

Accrued and other liabilities

Cash generated by operations before tax

Income taxes paid

Net cash from operating activities

Investing activities

Interest received

Purchases of property, plant and equipment

Purchases of other intangible assets

Purchases of available-for-sale investments

Proceeds on disposal of available-for-sale investments

Maturity/(purchase) of short-term investments

Purchase of subsidiaries, net of cash acquired*

Net cash (used in)/from investing activities

Financing activities

Cash received on issue of new share capital on exercise of share options

Proceeds received on issuance of shares from treasury

Purchase of own shares

Dividends paid to shareholders

Net cash used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the year

Effect of foreign exchange rate changes

Cash and cash equivalents at end of the year