Next: Notes to the Financial Statements

Statement of Cash Flows

For the year ended 31 December 2016

Note

2016
$000

2015
$000

Cash flows from operating activities

Receipts from customers

74,784

72,688

Net interest received

77

178

Payments to suppliers and employees

(53,463)

(48,038)

Income tax paid

(7,824)

(6,533)

Net cash provided by operating activities

15

13,574

18,295

Cash flows from investing activities

Receipts from associate

-

850

Proceeds from the sale of associate

563

13,800

Cash (paid)/acquired on acquisition/disposal of businesses

(541)

59

Payments for property, plant and equipment

(1,105)

(2,097)

Payments for intangible assets

(5,886)

(3,440)

Acquisition of businesses

-

(11,500)

Net cash used in investing activities

(6,969)

(2,328)

Cash flows from financing activities

Proceeds from term loans

-

20,000

Dividends paid

22

(16,094)

(15,834)

Net cash provided by/(used in) financing activities

(16,094)

4,166

Net increase/(decrease) in cash and cash equivalents

(9,489)

20,133

Cash and cash equivalents at the beginning of the year

40,293

20,160

Cash and cash equivalents at the end of the year

30,804

40,293

Cash comprises:

Cash at bank

20,804

32,793

Bank deposits

10,000

7,500

Net cash and cash equivalents and bank overdraft

30,804

40,293

The accompanying notes form an integral part of these financial statements

Included within the cash and cash equivalent balance at 31 December 2016 is $20.0 million (31 December 2015: $20.0 million) that is held for risk capital requirements by the Clearing House and is not available for general cash management use by the Group.

Of the $20.0 million proceeds from term loans in 2015, $10.0 million was used to fund the acquisition of SuperLife Limited, with the remaining $10.0 million used to fund the $10.0 million increase in Clearing House risk capital.