Consolidated cash flow statement

for the six months ended 31 March 2009

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	Notes	Six months to 31 March		Year ended 30 September 2008 Audited £m
	Notes	2009 Unaudited £m	2008 Unaudited £m	Year ended 30 September 2008 Audited £m
Cash flow from operating activities
Cash generated from operations¹	14	497	349	915
Interest paid		(58)	(47)	(104)
Interest element of finance lease rentals		(1)	(1)	(2)
Tax received		3	6	16
Tax paid		(90)	(76)	(165)
Net cash from/(used in) operating activities of continuing operations		351	231	660
Net cash from/(used in) operating activities of discontinued operations		(2)	2	2
Net cash from/(used in) operating activities		349	233	662
Cash flow from investing activities
Purchase of subsidiary companies and investments in associated undertakings²	13	(94)	(146)	(181)
Proceeds/(payments) from the sale/closure of discontinued activities²	6	(31)	(10)	(17)
Proceeds/(payments) from the sale/closure of other activities²		(2)	–	12
Tax on profits from sale of subsidiary companies and associated undertakings		–	(5)	45
Purchase of intangible assets and investments¹		(53)	(31)	(73)
Purchase of property, plant and equipment¹		(79)	(50)	(119)
Proceeds from sale of property, plant and equipment / intangibles		7	14	26
Purchase of other investments		(3)	–	–
Proceeds from sale of other investments		–	–	1
Dividends received from associated undertakings		3	3	5
Interest received		15	16	25
Net cash from/(used in) investing activities by continuing operations		(237)	(209)	(276)
Net cash from/(used in) investing activities by discontinued operations		–	–	–
Net cash from/(used in) investing activities		(237)	(209)	(276)
Cash flow from financing activities
Proceeds from issue of ordinary share capital	12	9	22	58
Purchase of own shares³		(11)	(290)	(355)
Net increase/(decrease) in borrowings – excluding new leases / repayments	15	174	(61)	(141)
Repayment of obligations under finance leases	15	(7)	(6)	(11)
Equity dividends paid	9,12	(148)	(135)	(209)
Dividends paid to minority interests	12	(1)	(3)	(4)
Net cash from/(used in) financing activities by continuing operations		16	(473)	(662)
Net cash from/(used in) financing activities by discontinued operations		–	–	–
Net cash from/(used in) financing activities		16	(473)	(662)
Cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents	15	128	(449)	(276)
Cash and cash equivalents at beginning of the period		579	839	839
Currency translation gains/(losses) on cash and cash equivalents		23	10	16
Cash and cash equivalents at end of the period		730	400	579

1: Certain contract-related assets previously included in property, plant and equipment, and other receivables have been reclassified as intangible assets. The cash flow for the six months to 31 March 2008 has been restated accordingly. The cash flow for the year ended 30 September 2008 was originally published on this basis. There is no impact on the income statement.
2: Net of cash acquired or disposed and payments received or made under warranties and indemnities.
3: Share buy-back and increase/(decrease) in own shares held to satisfy employee share-based payments.

Reconciliation of free cash flow from continuing operations

for the six months ended 31 March 2009

	Six months to 31 March		Year ended 30 September 2008 Audited £m
	2009 Unaudited £m	2008 Unaudited £m	Year ended 30 September 2008 Audited £m
Net cash from operating activities of continuing operations	351	231	660
Purchase of intangible assets and investments	(53)	(31)	(73)
Purchase of property, plant and equipment	(79)	(50)	(119)
Proceeds from sale of property, plant and equipment / intangibles	7	14	26
Purchase of other investments	(3)	–	–
Proceeds from sale of other investments	–	–	1
Dividends received from associated undertakings	3	3	5
Interest received	15	16	25
Dividends paid to minority interests	(1)	(3)	(4)
Other	–	–	(1)
Free cash flow from continuing operations	240	180	520