| for the year ended 31 December |
 | | Click icon for this table in Excel format |
| Notes | 1998 £m | 1997 £m | 1996 £m |
|
| Net cash inflow from operating activities | 10 | 998 | 936 | 995 |
| Dividends received from associates | | 9 | – | – |
| Returns on investments and servicing of finance |
| Interest received | | 76 | 79 | 65 |
| Interest paid | | (72) | (3) | (3) |
| Income from fixed asset investments | | 3 | 1 | 6 |
|
| Net cash inflow from returns on investments and servicing of finance | | 7 | 77 | 68 |
| Taxation paid | | (219) | (196) | (197) |
| Capital expenditure and financial investment |
| Purchase of tangible fixed assets | | (307) | (369) | (374) |
| Sale of tangible fixed assets | | 2 | 1 | 2 |
| Purchase of fixed asset investments | | (22) | (21) | (23) |
| Sale of fixed asset investments | | 34 | 11 | – |
|
| Net cash outflow on capital expenditure and financial investment | | (293) | (378) | (395) |
| Acquisitions and disposals (including associates) | 11 | (138) | (22) | (106) |
| Equity dividends paid | | (188) | (196) | (166) |
|
| Cash inflow before management of liquid resources and financing | | 176 | 221 | 199 |
| Management of liquid resources |
| Net decrease/(increase) in short-term investments | 11 | 313 | (255) | (172) |
| Financing |
| Return of surplus capital (see note 1) | | (1,482) | – | – |
| Proceeds from issue of shares | | 13 | 22 | 23 |
| Proceeds from issue of non-equity shares in TIBCO Software Inc. | 27 | – | 17 | – |
| Shares repurchased | | – | (21) | – |
| Net increase/(decrease) in borrowings | 11 | 972 | (15) | 2 |
|
| Net cash (outflow)/inflow from financing | | (497) | 3 | 25 |
|
| (Decrease)/increase in cash | 12 | (8) | (31) | 52 |
|
| Reconciliation of net cash flow to movement in net funds | | 1998 £m | 1997 £m | 1996 £m |
|
| (Decrease)/increase in cash | | (8) | (31) | 52 |
| Cash (inflow)/outflow from movement in borrowings | | (972) | 15 | (2) |
| Cash (inflow)/outflow from movement in liquid resources | | (313) | 255 | 172 |
|
| Change in net cash resulting from cash flows | | (1,293) | 239 | 222 |
| Translation differences | | – | 1 | (22) |
|
| Movement in net (debt)/funds | | (1,293) | 240 | 200 |
| Opening net funds | | 1,290 | 1,050 | 850 |
|
| Closing net (debt)/funds | 12 | (3) | 1,290 | 1,050 |
|
