+----------------------------------------------+-------+-----------+-----------+
| | Notes | Year | Year |
| | | ended 31 | ended 31 |
| | | Dec 2008 | Dec 2007 |
| | | GBP'000s | GBP'000s |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Net cash (used in)/from operating activities | | (4,456) | 3,625 |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Investing activities | | | |
+----------------------------------------------+-------+-----------+-----------+
| Interest received | | 7,484 | 11,666 |
+----------------------------------------------+-------+-----------+-----------+
| Acquisition of subsidiary | | (41) | (165) |
+----------------------------------------------+-------+-----------+-----------+
| Loans provided to subsidiary undertaking | | (158,650) | (86,290) |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Net cash used in investing activities | | (151,207) | (74,789) |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Financing activities | | | |
+----------------------------------------------+-------+-----------+-----------+
| Borrowings | | 58,306 | - |
+----------------------------------------------+-------+-----------+-----------+
| Proceeds from issue of shares | 30 | 83,685 | - |
+----------------------------------------------+-------+-----------+-----------+
| Costs relating to issue of shares | 31 | (1,920) | (95) |
+----------------------------------------------+-------+-----------+-----------+
| Distributions paid | | (17,824) | (10,050) |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Net cash from/(used in) financing activities | | 122,247 | (10,145) |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Net decrease in cash and cash equivalents | | (33,416) | (81,309) |
+----------------------------------------------+-------+-----------+-----------+
| Cash and cash equivalents at the beginning | | 47,126 | 128,435 |
| of the year | | | |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
| Cash and cash equivalents at end of year | | 13,710 | 47,126 |
+----------------------------------------------+-------+-----------+-----------+
| | | | |
+----------------------------------------------+-------+-----------+-----------+
Notes to the Cash Flow Statement
+-----------------------------------------------------+-----------+----------+
| | Year | Year |
| | ended | ended 31 |
| | 31 Dec | Dec 2007 |
| | 2008 | GBP'000s |
| | GBP'000s | |
+-----------------------------------------------------+-----------+----------+
| Reconciliation of profit to net cash (used | | |
| in)/from operating activities | | |
+-----------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------+-----------+----------+
| Profit for the year | 19,980 | 18,181 |
+-----------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------+-----------+----------+
| Interest income | (22,065) | (16,869) |
+-----------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------+-----------+----------+
| Operating cash flows before movements in working | (2,085) | 1,312 |
| capital | | |
+-----------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------+-----------+----------+
| Decrease in receivables | 105 | 4,604 |
+-----------------------------------------------------+-----------+----------+
| Decrease in payables | (2,476) | (2,291) |
+-----------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------+-----------+----------+
| Net cash (used in)/from operating activities | (4,456) | 3,625 |
+-----------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------+-----------+----------+
Notes to the Company Financial Statements
40. Significant accounting policies
The separate financial statements have been prepared under International
Financial Reporting Standards on the historical cost basis. The principal
accounting policies adopted are the same as those set out in note 3 to the
consolidated financial statements, except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate,
provisions for impairment.
The Company financial statements have been prepared on a going concern basis
(see further details in note 1).
41. Other gains
+---------------------------------------+--------------+--------------+
| | Year ended | Year ended |
| | 31 Dec 2008 | 31 Dec 2007 |
| | GBP'000s | GBP'000s |
+---------------------------------------+--------------+--------------+
| | | |
+---------------------------------------+--------------+--------------+
| Net foreign exchange gains | 1,664 | 1,748 |
+---------------------------------------+--------------+--------------+
| | | |
+---------------------------------------+--------------+--------------+
42. Profit for the year
The auditors' remuneration for audit services to the Company was GBP143,000
(2007: GBP240,000).
43. Subsidiaries
Details of the Company's significant subsidiaries at 31 December 2008 are as
follows:
+---------------------------------------------+----------------+------------------+
| Name | Place of | Proportion |
| | incorporation | of |
| | (or | ownership |
| | registration) | interest |
| | and operation | % |
| | | |
+---------------------------------------------+----------------+------------------+
| Directly | | |
| owned | | |
+---------------------------------------------+----------------+------------------+
| Babcock & Brown | Luxembourg | 100 |
| Public Partnerships | | |
| 1 SARL | | |
|