Cashflow

Consolidated and parent Company statement of cash flows

For the year ended 31 December 2020

 

Group
2020
$000
Group
2019
$000

Net cash generated by operating activities

41,510

6,456

Investing activities

   

Purchase of property, plant and equipment

(2,449)

(1,269)

Purchase of intangible assets

(11,375)

(11,830)

Proceeds from disposal of intangible assets and property, plant and equipment

- 18

Acquisition of subsidiaries, net of cash acquired

(27) (2,850)  

Deferred consideration paid in connection with subsidiary acquisitions

(7,149)

(12,004)

Net cash used in investing activities

(21,000)

(27,935)

Financing activities

   

Movements in other banking facilities​

34,687

(7,499)
Proceeds from ABS issuing

62,440

85,064
Increase in non-controlling interest on acquisition - 1,800

Repayment of interest on senior notes

(38,860)

(33,726)

Repayment of interest on asset-backed loans

(3,909)

(2,144)

Repurchase of own shares

(562)

(6)

Issue of share capital

5 6

Bank interest received

61 61

Bank and other similar fees paid

(7,622)

(8,452)  
Lease payments

(5,636)

(5,061)  

Payment of dividends

- (23,062)

Payment of deferred interest

(328)

-

Net cash flow generated by(used in) financing activities

40,276

7,521

Net increase/(decrease) in cash and cash equivalents

60,786

(13,958)

Cash and cash equivalents at beginning of year

115,376

132,672

Effect of exchange rates on cash and cash equivalents

6,730

(3,338)

Cash and cash equivalents at end of year

182,892

115,376

Reconciliation of (loss)/profit after tax to free cash flow

 

Reported

profit

£000

Other
items
£000

Cash
result
£000

 

Income from portfolio investments

165,089

173,783

338,872

Balance sheet cash collections in the period

Fair value gains on portfolio investments at FVTPL

4,976

(4,976)

 

Net impairment losses

(100,436)

100,436

 

Income from AMS and FIM

97,026

97,026

Income from AMS and FIM

Gain on disposal of leases

453

(453)

 

Other income

384

384

 

Total income1

167,492

268,790

436,282

 

Total operating expenses

(224,820)

21,7012

(203,119)

Cash operating expenses

Operating (loss)/profit

(57,328)

290,491

233,163

Adjusted EBITDA4

Net finance costs

(57,495)

1,2003

(56,295)

 

(Loss)/profit before tax

(114,823)

291,691

176,868

 

Taxation credit/(charge) on ordinary activities

21,206

(27,697)

(6,491)

 

(Loss)/profit after tax

(93,617)

263,994

170,377

 

 

 

 

(13,824)

Capital expenditure

 

 

 

156,553

Free cash flow5

1. Total income is largely derived from income from portfolio investments, plus income from asset management and servicing, being commission on balance sheet cash collections for third parties and fee income received. The non-cash items add back loan portfolio amortisation to get to balance sheet cash collections. Amortisation reflects a reduction in the statement of financial position carrying value of the portfolio investments arising from balance sheet cash collections, which are not allocated to income. Amortisation plus income from portfolio investments equates to balance sheet cash collections.

2. Includes non-cash items including depreciation and amortisation, share-based payment charges and foreign exchange.

3. Non-cash amortisation of fees and interest.

4. Adjusted EBITDA is a key driver to free cash flow. This measure allows us to monitor the operating performance of the Group.

5. Free cash flow is the Adjusted EBITDA after the effect of capital expenditure and working capital movements.