11th Mar 2008 07:00
Augean Plc11 March 2008 11 March 2008 Augean Plc Preliminary results for the year ended 31 December 2007 Augean PLC ("Augean" or "the group"), one of the UK's market leaders in themanagement of hazardous waste, announces its preliminary results for the yearended 31 December 2007. Financial highlights • 5% increase in revenue excluding landfill tax to £22.6m (2006: £21.4m) • 8% increase in operating profit before exceptional items to £4.9m (2006: £4.6m) • 8% increase in profit before tax, joint venture and exceptional items to £3.8m (2006: £3.5m) • 2% increase in adjusted earnings per share to 5.7p (2006: 5.5p) • 23% increase in cash flow from operations to £7.7m (2006: £6.3m) • Exceptional goodwill impairment charge recognised of £26.8m Operational highlights • Paul Blackler appointed CEO • Acquisition and successful integration of two strategic recycling and treatment businesses • Planning permission granted for Port Clarence Waste Recovery Park • Approval for construction of advanced in-vessel treatment facility at Cannock • Full IMS accreditation received across group • Laboratory services phase 2 operational • Terramundo land remediation centre opened • Planning permission granted for second Terramundo facility at King's Cliffe Commenting on the results, CEO Paul Blackler said: "Augean has been developing its business strategy over the past three years toposition the group to be capable of rewarding its shareholders with strong,predictable performance in the environmental sector strategically secured bybeing closely aligned to the objectives of the government's waste aims andpolicies." For further information, please contact: Augean PLC Tel: 01937 844 980Paul Blackler, Chief ExecutivePeter Southby, Finance Director Financial Dynamics Tel: 020 7831 3113Jonathon BrillBilly Clegg There will be a meeting for analysts at 1130 today at the offices of FD, HolbornGate, 26 Southampton Buildings, London, WC2A 1PB. Chairman's statement We have reported results broadly in line with expectations. Net revenueexcluding landfill tax for the year ended 31 December 2007 increased by 5% to£22.6m (2006: £21.4m). Including landfill tax, total group revenue was broadlyflat at £26.3m (2006: £26.6m). Operating profit before exceptional items increased by 8% to £4.9m (2006:£4.6m). The statutory results include a number of exceptional items, the mostsignificant of which relates to a £26.8m impairment charge for goodwill in thelandfill division. This accounting charge has been calculated according to therequirements of International Financial Reporting Standards (IFRS) and does notaffect the cash flow of the business. Earnings per share adjusted forexceptional items were 5.7p per share versus 5.5p per share in 2006. Paul Blackler and Peter Worlledge joined our board as executive directors in thefirst quarter of 2007, with Paul moving up to the role of chief executive uponPeter's resignation at the end of November 2007. Paul's experience in thissector of the waste market is second to none and your directors as well as ourcustomers see this as a very positive move. Paul describes in the business review how he sees our market developing and whathis plans are to take advantage of the opportunities as they arise. We havebeen active on the acquisition front during the year as we have moved thebusiness further into the treatment market. Despite the acquisition activity,good cash flow has meant we are still only modestly geared and therefore in agood position to take advantage of any further deals that could be appropriatefor us. The hazardous waste market continues to evolve and we have placed more emphasison the treatment of waste, where the growth opportunities are greater than injust pure landfill. Substantial funds have been invested to provide ourcustomers with the best facilities possible. We have refined our team to meetour customers' demands and are now satisfied that all the necessary changes havebeen made to deal with the evolving marketplace we serve. Your directors wish to thank all our staff for their hard work throughout theyear. We intend to consolidate our leading position within the hazardous wastemarket and anticipate further profitable times ahead in 2008 with strong cashflow. Business review Introduction The board has set out to ensure that the resources and expertise are now inplace to take the business through the current transitional phase to a period ofstability, opportunity and growth through the development of strong strategicassets and a business plan to create further value through growth in marketshare and client relationships. 2007 provided encouragement in pursuing this vision, as the business furtherdeveloped its position in the market by enhancing its locations and servicesthrough asset development and acquisitions. However, short term performance washindered by a number of issues, the most significant of which was the downturnin volumes from remediation projects over the unseasonably wet summer months,which affected the performance of the landfill division. The treatment division also had a mixed year driven in part by an inconsistentregulatory approach which resulted in Augean's sites finding it, on occasion,difficult to compete with those operating at a lower standard, and in part bymanagement changes within the group. The ongoing implementation of thePollution Prevention Control (PPC) regime has seen a positive impact on thestandards required to operate treatment and transfer facilities but thecertainty of consistent regulatory enforcement and control has not always beenfully effective. Augean is proud to have maintained excellent operatingstandards at its sites which have resulted in the attainment of IntegratedManagement System (IMS) accreditation. The group has continued to maintain strong cash generation, which has allowedfor continued investment in developing the group's position in the market. Thegroup has pursued opportunities with its assets to achieve the change of use todeliver further enhanced services to its clients. Along with two importantstrategic acquisitions, Augean's strategy of delivering enhanced services,locations and development opportunities has seen a further expansion of thegroup. In the market there has been some improvement in stability as the significantregulatory and process change has become progressively integrated throughout thesector. In addition there is growing evidence of the market shift and the fulleffect of the Landfill Directive implementation, which is changing the profileof the waste streams for the group. As a result of this change, Augean hasfocused on ensuring that the right resources are in place, including a thoroughreview of the group's structure, resources and skills, to create a strongworking environment for the business to deliver success. The group's staff havebeen exceptional in their response to embracing these changes and this providesa solid foundation for the further challenges ahead. The hazardous waste market The government updated its Waste Strategy in 2007 with clear objectives tochange the way the United Kingdom manages its waste. The Waste Strategy sets anumber of core objectives for the future: • decouple waste growth from economic growth and put more emphasis on prevention and re-use; • meet and exceed the Landfill Directive diversion targets for biodegradable municipal waste in 2010, 2013 and 2020; • increase diversion from landfill of non-municipal waste and secure better integration of treatment; • secure the investment in infrastructure needed to divert waste from landfill and for the management of hazardous waste; and • get the most environmental benefit from that investment, through increased recycling of resources and recovery of energy from residual waste using a mix of technologies. With particular focus on hazardous waste, the strategy clearly defines theclimate and market which the board recognises creates opportunities now and forthe future. Augean is one of only a relatively small number of businesses thathas sought and received approval for permissions to construct a modern wasteinfrastructure in line with the government's core waste objectives. The board has continually reviewed market trends as new information providesmore transparency about the origin, quantities and management of wastes in theUnited Kingdom. This has brought more confidence in the investment climate asthe sector realises the key areas in need of change. Whilst Augean has aligned its business to the fundamental objectives of thedeveloping market, it should be noted that level and consistent regulatorystandards have not yet been fully achieved. Regional differences in standardsaccepted within the sector persist, though the expectation has to be that thiswill improve in time and further benefit the market position for the group. Strategy The board has maintained a focused strategic direction for the business. Assetdevelopment continues to be at the centre of the group's strategy and in 2007the group achieved significant success in obtaining planning permissions toallow the asset development programmes to proceed. This puts Augean in aposition to build new infrastructure to bring on line new revenue and profitstreams to the group. Within the landfill division the group owns significant assets in the void spaceat its three operational sites. Following the re-assignment of void at PortClarence from non-hazardous to hazardous in March 2007 the group now enjoys 6.8mcubic metres of hazardous void space, representing over half of the country'spermitted merchant hazardous landfill void. In addition the land banks withinthe group ownership boundaries on all the sites are being reviewed to ensurethat at the appropriate time they can be programmed to deliver additional voidfor the future. The ongoing strategy of developing rapidly towards a modern and fit-for-purposewaste infrastructure ensures that the growth in the business is underpinned bythe regulatory guidance and compliance position. The group continues to play animportant role in the development of the regulatory framework for the sector.Augean engages constructively and proactively at all levels with the regulatorspromoting the high standards and regulatory clarification necessary for themodernisation of the sector. Whilst organic growth is an important element to the business's progression, itwill be supplemented by acquisitions. The acquisition strategy will be guidedby the principles of location, barriers to entry, growth and market. The Waste Strategy has continued to provide a framework to direct the businessto deliver the most appropriate methods of handling wastes with the objective ofdelivering enhanced shareholder value through long term strategic developments.Specifically the Waste Strategy has identified a clear need for a range ofhazardous waste treatment capacities which has become an important signpost forthe development strategy of the business. The group is in advanced negotiationsto bring to the market further technologies which are energy focused and targetthe principles of the waste hierarchy and carbon management. This will increaseAugean's exposure to new and exciting long term waste and energy markets tocomplement the existing disciplines and services. The review of the waste framework directive with member states is furtherdeveloping the concept of legal support for the waste hierarchy. This willenable the regulator to enforce standards and methods of waste managementthrough the hierarchy; the work to date puts the business in an ideal positionto meet the challenges ahead. Augean has reviewed its core disciplines and defined its key competencies asbeing in the operation of hazardous landfills, the treatment and recycling ofhazardous wastes, the client service vision for delivering complex solutions ina highly regulated business and the development of value added technologies tolead the modernisation of the waste infrastructure in the United Kingdom. Augean's strategy to deliver value may therefore be summarised as follows: • maximise value of the hazardous landfill void; • operate compliant and competitive treatment and recycling operations; • capitalise on strong asset-backed business; • pursue profitable contracts for the group's services; • achieve planning and permitting status for the future developments in the market; and • implement proven technological solutions to modernise the United Kingdom's waste infrastructure. Divisional review Treatment The year began with an emerging treatment division, still new in its creationfrom acquisitions over the preceding 18 months, to which the group has furtheradded with the acquisition of Chemical Recoveries at the end of October 2007 andHitech in December 2007. Turnover for the enlarged division was £10.5m andoperating profit was £1.5m. The acquisition of Chemical Recoveries has expanded the group's waste processingcapacity. Its site in Avonmouth specialises in the recycling and recovery ofcontaminated industrial solvents, oils, sludges and wastewaters. The 3.4 acrefacility is operated under a modern PPC permit and has a range of processoptions for different waste streams ranging from physicochemical and phaseseparation techniques, aerobic and anaerobic biological treatment, thermalrecovery including steam distillation to bulking, blending and transferactivities. The site currently processes approximately 70,000 tonnes of wasteper annum. The Hitech business brought the group a fully permitted hazardous wastetreatment and recycling facility in Paisley, Glasgow and an industrial servicesoperation in Ellesmere Port in the North West of England. Hitech has developedinnovative solutions for the management of hazardous wastes and additionallyspecialises in both industrial services and branded collection systems. The existing management teams of both Chemical Recoveries and Hitech have joinedAugean following the respective acquisitions and their expertise will supportfurther the development of the treatment division. The new businesses providegreater geographical coverage and provide a range of opportunities for thefuture. Development plans are already underway to enhance the new sites'services and capacities. Alongside the acquisitions, organic development has continued to be a keyfeature of the period. In June 2007 the planning application was submitted forthe development of the Cannock hazardous waste facility. This development willdeliver enhanced technologies to the site and will increase the capacity from17,000 tonnes per annum to 30,000 tonnes and also broaden the range of wasteswhich can be treated. In September 2007 the group submitted the most significant application to theplanning authorities with the proposal to construct the Port Clarence WasteRecovery Park. The design criteria for the facility is to bring to the market arange of new, innovative but proven technologies to treat, recycle and recover,including energy, hazardous and non-hazardous wastes. The facility will beconstructed over 13 hectares of available land at the Port Clarence site makingit the largest single site waste facility in the UK. The design concept isconsistent with the established facilities in mainland Europe and North America.The planning application was subsequently approved in January 2008. In December 2007 the group's treatment division delivered benchmark standardswhich were reflected in the attainment of IMS accreditation ISO 14001, OHSAS1800, ISO 9001 and PAS 99 (Publicly Available Specification). Landfill Excluding landfill tax, turnover for the landfill division decreased by 9% to£13.8m following the completion of the non-hazardous Mark's Quarry site in 2006. However, the group's focus on higher value hazardous waste resulted in animprovement in margin to 25%, with the division generating £3.4m of operatingprofit. Hazardous volumes were little changed at 235,000 tonnes after adifficult summer period, with average hazardous prices also broadly unchanged at£51 per tonne. In March 2007 the group received the permit variation for Port Clarence toincrease the site's hazardous void by re-designation of non-hazardous void. Atthe year end, the group's permitted hazardous void space totalled 6.8m cubicmetres. In October 2007 the landfill division obtained accreditation to PAS 99. This isthe world's first integrated management system developed by the BSI Group. Theboard wishes to thank the staff and recognises their commitment in achieving thestandards which merit this award. Terramundo The group concluded the development phase of the joint venture company in early2007 to create the Terramundo brand and initiate the construction of thetreatment and recycling facility for contaminated soils at Port Clarence.Construction works were started in May 2007 with the facility being completedand the process being delivered the following month. A number of marketing andclient presentations were well received by the sector and the facility welcomedits first loads through the second half of the year, achieving 12,000 tonnes bythe year end. Further planning development was completed with the planning applicationsubmitted for the installation of a soil treatment facility at the King's Cliffesite, with the project objectives to bring on line a second Terramundo treatmentand recycling facility in the south of England. This application was approvedsubsequent to the year end. Financial review IFRS These are the group's first consolidated financial statements prepared underIFRS. The comparative information for the year ended 31 December 2006 has beenrestated accordingly. Details of the impact of IFRS on the group's financialstatements are included in the group's conversion announcement on 5 July 2007and in the annual report. Trading Net revenue excluding landfill tax for the year ended 31 December 2007 increasedby 5% to £22.6m (2006: £21.4m). This includes a contribution from thebusinesses acquired in late 2007 of £0.9m. With the inclusion of landfill taxcharged to customers, on which the group makes no margin, of £3.7m (2006:£5.1m), total group revenue fell by 1% to £26.3m (2006: £26.6m). Operating margin and exceptional items Operating profit before exceptional items increased by 8% to £4.9m (2006:£4.6m), of which acquisitions contributed £0.1m. This represents an improvedoperating margin on turnover excluding landfill tax of 22% (2006: 21%), achieveddespite the introduction of lower margin treatment businesses into the group. Operating profit in the year was adversely affected by exceptional itemsrelating to the departure of the previous chief executive (£0.2m), a charge inrespect of tax losses from acquisitions used in the year which had notpreviously been recognised (£0.5m) and the recognition of an impairment loss of£26.8m in the landfill division. Under IFRS, an annual impairment review must be performed for each cashgenerating unit in accordance with IAS 36 (Impairment of assets). The group hascompleted this exercise with the advice of external experts and determined that,given the continued uncertainty in the hazardous landfill market, it would beprudent to recognise an impairment of goodwill in the landfill division. Thisdoes not affect the cash flow of the business. After including the impact of these exceptional items, the group's operatingloss was £22.7m (2006: profit of £3.3m). Finance costs In October 2007 the group extended its borrowing facilities in connection withthe acquisition of treatment businesses. As a result, net finance costsincreased to £1.1m (2006: £1.0m), including £0.1m (2006: £0.1m) of unwinding ofdiscount on provisions. Cash finance costs were covered 4.9 times (2006: 4.9times) by underlying operating profit. Joint venture In June 2007 the group's Terramundo joint venture with DEC NV commenced trading.As Terramundo is the first fixed ground remediation centre in the UnitedKingdom, the market for its services is still developing. During its firstmonths of commissioning, testing and operation, Augean's share of the jointventure's losses was £0.1m. Tax The group has benefited in the year from the utilisation of tax losses in itslandfill businesses. This has resulted in no overall tax charge in the year(2006: credit of £0.1m). While there continues to be uncertainty over theextent and timing of the tax losses, the group believes that it will continue tobenefit from a reduced tax rate in the short term. Dividend The board does not recommend the payment of a dividend for the year ended 31December 2007. It continues to review the group's financial situation in orderto ensure that dividends are paid to shareholders at an appropriate point in thegroup's development. Earnings per share Basic earnings per share adjusted to exclude the impact of exceptional itemsincreased by 2% to 5.7p (2006: 5.5p). The weighted average number of shares inissue was unchanged at 65.5m. After exceptional items, the loss per share was36.5p (2006: earnings per share of 3.7p). The dilutive effect of outstandingshare options was minimal in both years. Cash flow The group continued to be highly cash-generative during the year. Cashgenerated from operations was £7.7m (2006: £6.3m). This represented aconversion rate of 165% of operating profit before non-cash exceptional items(2006: 159%). After deducting capital expenditure, interest and tax, free cashflow was £3.2m (2006: £3.8m). Following the acquisition of the treatmentbusinesses for £11.7m, net debt has increased to £20.2m (2006: £10.9m). Capital expenditure Capital expenditure increased to £3.6m in the year (2006: £1.5m). The majorongoing areas of capital expenditure for the group are in landfill cellconstruction and in cell capping at the end of the cell's life. The timing ofthese costs is a function of the size of the cells and the rate of fill. During2006 no additional cells were built but in 2007 a more normal level of capitalexpenditure was experienced with the engineering of a new phase at Port Clarenceand the capping of a number of cells at the group's sites. Outlook Whilst the board recognises that change brings challenge, your directors haveinvested in the long term with a management team capable of delivering againstclear objectives as the market embraces the changes in benchmark standards. The review of the Waste Strategy in 2007 signals further changes in the way inwhich the United Kingdom manages its waste. In particular, there is real focuson encouraging social and economic responsibility for the waste that societygenerates and examining the mechanisms to re-use, recycle or recover the valueof waste in order to mitigate the exhaustion of natural resources. Augean hasbeen developing its business strategy over the past three years to position thegroup to be capable of rewarding its shareholders with strong, predictableperformance in the environmental sector strategically secured by being closelyaligned to the objectives of the government's waste aims and policies. Augean's success in overcoming the complex barriers to entry (by obtaining thepermissions to construct the infrastructure necessary to embrace the marketopportunities) has now created the platform to enhance the revenues and profitsof the group in the medium term. The business has operated diligently throughsignificant legislative change, completed acquisitions which always bringintegration challenges and searched to find the most appropriate technologicalsolutions to bring to market. Against this background, the outlook for thegroup is challenging but positive as Augean continues to lead the sector in bothits standards of operation and the services delivered to clients. The board believes that the market has reached a bench position and thereforeany further improvement in regulatory consistencies and enforcement can onlybenefit the group. The new asset development projects will single out Augean asthe deliverer of the modernisation of the country's hazardous wasteinfrastructure and therefore challenge those who do not operate to the requiredstandards. Current trading in landfill is flat year on year and the treatment division hasstarted the year strongly with the recent acquisitions having been fullyintegrated. The board looks forward to a year of steady further progress and toenhancing its unique strategic position to the benefit of all stakeholders. Consolidated income statementfor the year ended 31 December 2007 Before Before exceptional Exceptional exceptional Exceptional items items Total Items Items Total 2007 2007 2007 2006 2006 2006 Note £'000 £'000 £'000 £'000 £'000 £'000 Revenue 2- Continuing operations 25,370 - 25,370 26,561 - 26,561- Acquisitions 932 - 932 - - - 26,302 - 26,302 26,561 - 26,561Operating expenses (21,378) (27,617) (48,995) (22,007) (1,223) (23,230) Operating profit/(loss) 2- Continuing operations 4,834 (27,617) (22,783) 4,554 (1,223) 3,331- Acquisitions 90 - 90 - - - 4,924 (27,617) (22,693) 4,554 (1,223) 3,331Net finance charges (1,096) - (1,096) (1,020) - (1,020)Share of loss of joint venture (124) - (124) - - - Profit/(loss) before tax 3,704 (27,617) (23,913) 3,534 (1,223) 2,311Tax - - - 89 - 89 Profit/(loss) attributable 3,704 (27,617) (23,913) 3,623 (1,223) 2,400to equity shareholders Earnings per shareBasic and diluted 3 5.7p (42.2p) (36.5p) 5.5p (1.9p) 3.7p There were no recognised gains or losses in the period other than the profit forthe period and therefore no statement of recognised income and expenses ispresented. Consolidated balance sheetat 31 December 2007 2007 2006 £'000 £'000Non-current assetsGoodwill 77,230 94,079Other intangible assets 380 217Property, plant and equipment 31,500 28,839 109,110 123,135Current assetsInventories 94 -Trade and other receivables 8,246 6,034Cash and cash equivalents 401 - 8,741 6,034 Current liabilitiesTrade and other payables (7,557) (5,753)Current tax liabilities (1,570) (1,265)Financial liabilities (4,056) (3,768) (13,183) (10,786) Net current liabilities (4,442) (4,752) Non-current liabilitiesFinancial liabilities (16,524) (7,119)Provisions (3,680) (4,084)Trade and other payables (750) -Share of losses of joint venture (124) -Deferred tax liabilities (208) - (21,286) (11,203) Net assets 83,382 107,180 Shareholders' equityShare capital 6,549 6,549Share premium account 106,222 106,222Retained losses (29,389) (5,591) Total shareholders' equity 83,382 107,180 Consolidated cash flow statementfor the year ended 31 December 2007 2007 2006 Note £'000 £'000Operating activitiesCash generated from operations 4 7,714 6,269Interest paid (909) (1,026)Tax paid (59) (82) Net cash generated from operating activities 6,746 5,161Investing activitiesProceeds on disposal of property, plant and equipment 58 171Purchases of property, plant and equipment (3,578) (1,475)Purchases of intangible assets (17) (41)Purchase of businesses (11,708) (11,112) Net cash used in investing activities (15,245) (12,457) Financing activitiesRepayments of borrowings (2,000) (3,446)Drawdown of loan facilities 11,000 10,000Repayments of obligations under finance leases and hire purchase contracts (151) (165) Net cash from financing activities 8,849 6,389 Net increase/(decrease) in cash and cash equivalents 350 (907)Cash and cash equivalents at beginning of period (1,636) (729) Cash and cash equivalents at end of period (1,286) (1,636) 1 Financial information The financial information set out in this preliminary announcement does notconstitute statutory accounts within the meaning of s240 of the Companies Act1985. Statutory accounts for the year ended 31 December 2007 will be dispatchedto shareholders by 30 April 2008 for approval at the Annual General Meeting tobe held on 3 June 2008. Those accounts have not yet been delivered to theRegistrar, nor have the auditors reported on them. 2 Segmental information For management purposes the group is currently organised into two operatingdivisions. These business segments are the basis on which the group reports itsprimary segmental information. As the group's business is entirely conductedwithin the United Kingdom, there are no geographical business segments and as aresult no secondary reporting segmental information is presented. The segmental results for the year ended 31 December 2007 are as follows: Landfill Treatment Group £'000 £'000 £'000RevenueExternal sales net of landfill tax 12,091 10,474 22,565Landfill tax 3,737 - 3,737 External sales 15,828 10,474 26,302Inter-segment sales 1,756 - 1,756 Total revenue 17,584 10,474 28,058 ResultOperating profit before exceptional items 3,445 1,479 4,924Exceptional items (27,617) - (27,617) Operating (loss)/profit (24,172) 1,479 (22,693)Net finance charges (1,096)Share of loss of joint venture (124) Loss before tax (23,913)Tax - Loss attributable to equity shareholders (23,913) The segmental results for the year ended 31 December 2006 are as follows: Landfill Treatment Group £'000 £'000 £'000RevenueExternal sales net of landfill tax 13,330 8,114 21,444Landfill tax 5,117 - 5,117 External sales 18,447 8,114 26,561Inter-segment sales 1,816 - 1,816 Total revenue 20,263 8,114 28,377 ResultOperating profit before exceptional items 3,187 1,367 4,554Exceptional items (1,223) - (1,223) Operating profit 1,964 1,367 3,331 Net finance charges (1,020)Profit before tax 2,311Tax 89 Profit attributable to equity shareholders 2,400 3 Earnings per share 2007 2006 £'000 £'000 (Loss)/profit after tax for the purposes of basic and diluted earnings per share (23,913) 2,400Exceptional items 27,617 1,223Profit after tax for the purposes of basic and diluted adjusted earnings per share 3,704 3,623 Number NumberNumber of sharesWeighted average number of shares for basic earnings per share 65,488,892 65,488,892Effect of dilutive potential ordinary shares from share options - 2,533 Weighted average number of shares for diluted earnings per share 65,488,892 65,491,425 Earnings per shareBasic and diluted (36.5p) 3.7p Adjusted earnings per shareBasic and diluted 5.7p 5.5p 4 Reconciliation of operating (loss)/profit to net cash inflow from operatingactivities 2007 2006 £'000 £'000 Operating (loss)/profit (22,693) 3,331Other non-cash charge - goodwill tax adjustment 533 600Goodwill impairment 26,846 -Amortisation of intangible assets 113 84Depreciation 3,405 4,513After-care provisions 127 168 Earnings before interest, tax, depreciation and amortisation ("EBITDA") 8,331 8,696(Profit)/loss on sale of property, plant and equipment (4) 100Share-based payments 115 59Decrease in inventories 21 -Decrease in trade and other receivables 86 1,012(Decrease)/increase in trade and other payables (213) 475Decrease in provisions (622) (4,073) Cash generated from operations 7,714 6,269Interest paid (909) (1,026)Tax paid (59) (82) Net cash inflow from operating activities 6,746 5,161 5 Analysis of changes in net financial liabilities 31 December Cash 31 December 2006 (inflow)/outflow Acquisitions 2007 £'000 £'000 £'000 £'000 Cash and cash equivalents - (419) 820 401Overdraft (1,636) (51) - (1,687)Bank loans due within one year (2,000) - - (2,000)Bank loans due after one year (7,000) (9,000) - (16,000)Finance leases and hire purchase contracts (251) 151 (793) (893) Net financial liabilities (10,887) (9,319) 27 (20,179) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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