Notes to the consolidated cash flow statement

35 Notes to the consolidated cash flow statement

The consolidated cash flow statement has been prepared using the indirect method. To reconcile the movement in cash and cash equivalents, the profit after tax is adjusted for items in the income statement and movements in the balance sheet that did not affect receipts and payments during the financial year 2022.

The cash flow statement distinguishes between cash flows from operating, investing and financing activities. Cash flow from operating activities includes interest and income tax payments as well as interest and dividend receipts. Development costs and investments in and disposals of non-current assets (including financial interests) are included in cash flow from investing activities. Dividends paid out are recognised as cash outflows from financing activities.

The consolidated cash flow statement includes the cash flows for continuing operations and for discontinued operations.

Movement in working capital

Working capital consists of inventories and current receivables less trade and other liabilities. The table below shows the movement in working capital recognised in the cash flow from operating activities: