Pearson

Annual Report and Accounts 2010

Company cash flow statement Year ended 31 December 2010

All figures in £ millions Notes 2010 2009
Cash flows from operating activities
Net profit 289 233
Adjustments for:
Income tax (40) (57)
Net finance costs 115 169
Amounts due from subsidiaries 873 115
Net cash generated from operations 1,237 460
Interest paid (156) (130)
Tax received 50 65
Net cash generated from operating activities 1,131 395
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired (93) (1)
Interest received 1
Net cash used in investing activities (92) (1)
Cash flows from financing activities
Proceeds from issue of ordinary shares 7 12 8
Net purchase of treasury shares (71) (13)
Repayment of borrowings (131)
Dividends paid to company’s shareholders (292) (273)
Net cash used in financing activities (351) (409)
Effects of exchange rate changes on cash and cash equivalents 17 15
Net increase in cash and cash equivalents 705
Cash and cash equivalents at beginning of year (295) (295)
Cash and cash equivalents at end of year 4 410 (295)