| | 2007 | 2006 | | | £’000 | £’000 | Net cash inflow from operating activities
| 25,653 | 24,153 | | Investing activities | | | | Interest received | 1,090 | 795 | | Interest paid | (362) | (302) | | Proceeds on disposal of property, plant and equipment | 75 | 86 | | Purchase of intangible assets | (205) | (165) | | Purchase of available for sale investments | - | (910) | | Payment of contingent acquisition consideration | (2,633) | - | | Acquisition of subsidiary undertakings | (3,116) | (10,059) | | Purchase of property, plant and equipment | (3,644) | (3,786) | | Net cash used in investing activities | (8,795) | (14,341) | | | | | | Financing activities | | | | Dividends paid | (9,755) | (8,055) | | Payment of loan notes | (317) | (508) | | Repayment of borrowings | (175) | - | | Receipts from exercise of sharesave options | 33 | 260 | | Repayment of obligations under finance leases | (62) | (28) | | Own shares purchased | (141) | (435) | | Issue of equity share capital | 886 | 1,141 | | Net cash used in financing activities | (9,531) | (7,625) | | Effects of foreign exchange on cash balances | (3) | (158) | | Net increase/(decrease) in cash and cash equivalents | 7,324 | 2,029 | | Cash and cash equivalents at the beginning of the year | 25,249 | 23,220 | | Cash and cash equivalents at the end of the year | 32,573 | 25,249 | | Comprising: | | | | Cash and cash equivalents | 33,878 | 28,094 | | Bank loans and overdrafts | (1,305) | (2,845) | | | 32,573 | 25,249 |
Notes to the Consolidated Cash Flow Statement
(a) Net cash inflow from operating activities | | | 2007 | 2006 | | | £’000 | £’000 | | Operating profit | 31,470 | 27,994 | | Depreciation of property, plant and equipment | 4,178 | 3,875 | | Amortisation of intangible assets acquired through business combination | 770 | 494 | | Amortisation of other intangible assets | 432 | 462 | | Share-based compensation charges | 1,064 | 811 | (Increase)/decrease in inventories * | (1,460) | (3,192) | | Increase in receivables * | (1,082) | (1,925) | Increase in payables * | (318) | 5,138 | | Other non-cash items | 84 | 50 | | Net cash inflow from operating activities before taxation | 35,138 | 33,707 | | Tax paid | (9,485) | (9,554) | | Net cash inflow from operating activities | 25,653 | 24,153 | | | | | * Net of effect of change in exchange rates | | | | | | |
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