Statement of cash flows

12 Months Ended

Dec. 31, 2023

Statement of cash flow

Statement of cash flows

11 Statement of cash flows

Accounting policy

Cash and cash equivalents comprise cash balances, call deposits and other short-term highly liquid investments and are held in the statement of financial position at fair value.

RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS	2021 £m	2022 £m	2023 £m
Operating profit	1,884	2,323	2,682
Share of results of joint ventures and associates	(29)	(19)	(46)
Amortisation of acquired intangible assets	297	294	279
Amortisation of internally developed intangible assets	295	309	330
Amortisation of pre-publication costs	60	72	76
Depreciation of property, plant and equipment	52	47	43
Depreciation of right-of-use assets	80	63	65
Share based remuneration	45	46	56
Total non-cash items	829	831	849
Increase in inventories and pre-publication costs	(73)	(103)	(90)
Increase in receivables	(103)	(251)	(24)
(Decrease)/increase in payables	(32)	280	(1)
Increase in working capital	(208)	(74)	(115)
Cash generated from operations	2,476	3,061	3,370

CASH FLOW ON ACQUISITIONS	Note	2021 £m	2022 £m	2023 £m
Purchase of businesses	12	(235)	(373)	(108)
Deferred payments relating to prior year acquisitions		(19)	(21)	(16)
Total		(254)	(394)	(124)

11 Statement of cash flows (continued)

RECONCILIATION OF NET DEBT	Cash and  cash  equivalents  £m	Debt  £m	Related  derivative  financial  instruments  £m	Finance  lease  receivable  £m	Total £m
As at 1 January 2022	113	(6,167)	35	2	(6,017)
Increase in cash and cash equivalents	208	-	-	-	208
Decrease in short-term bank loans, overdrafts and commercial paper	-	101	-	-	101
Issuance of term debt	-	(397)	-	-	(397)
Repayment of term debt	-	35	-	-	35
Repayment of leases	-	79	-	(1)	78
Change in net debt resulting from cash flows	208	(182)	-	(1)	25
Borrowings in acquired businesses	-	(3)	-	-	(3)
Remeasurement and derecognition of leases	-	(5)	-	-	(5)
Inception of leases	-	(34)	-	5	(29)
Fair value and other adjustments to debt and related derivatives	-	230	(245)	-	(15)
Exchange translation differences	13	(569)	(3)	(1)	(560)
At 1 January 2023	334	(6,730)	(213)	5	(6,604)
Decrease in cash and cash equivalents	(169)	-	-	-	(169)
Increase in short-term bank loans, overdrafts and commercial paper	-	(84)	-	-	(84)
Issuance of term debt	-	(651)	-	-	(651)
Repayment of term debt	-	847	-	-	847
Repayment of leases	-	72	-	(2)	70
Change in net debt resulting from cash flows	(169)	184	-	(2)	13
Borrowings in disposed businesses	-	1	-	-	1
Inception of leases	-	(38)	-	1	(37)
Fair value and other adjustments to debt and related derivatives	-	(100)	97	-	(3)
Exchange translation differences	(10)	186	8	-	184
At 31 December 2023	155	(6,497)	(108)	4	(6,446)

Net debt comprises cash and cash equivalents, loan capital, lease liabilities and receivables, promissory notes, bank and other loans and derivative financial instruments that are used to hedge certain borrowings. The Group monitors net debt as part of capital and liquidity management.