Financing activities

IAS1(10)(d) IAS7(1),IAS7(10)

IAS1(113)

Consolidated statement of cash flows ^1-3

Notes

2019

CU ‘000

2018

CU ‘000

IAS7(10),IAS7(18)(a)

Cash flows from operating activities

10(a)

IAS7(14)(a)

Cash generated from operations

65,818

49,525

IAS7(31)-(33)

Interest received ⁴

1,262

905

IAS7(31)-(33)

Interest paid ⁴

-6,895

-4,127

IAS7(14)(f),(35),(36)

Income taxes paid ⁵

-16,458

-12,161

Net cash inflow from operating activities

43,727

34,142

IAS7(10),IAS7(21)

Cash flows from investing activities

IAS7(39)

Payment for acquisition of subsidiary, net of cash acquired

14

-2,600

–

IAS7(16)(a)

Payments for property, plant and equipment

8(a)

-25,387

-17,602

IAS7(16)(a)

Payments for investment property Financing activities

8(c)

-1,900

–

IAS7(16)(c)

Payments for financial assets at fair value through other comprehensive income

-259

-2,029

IAS7(16)(c)

Payments for financial assets at amortised cost

7(b)

–

-1,175

IAS7(16)(a)

Payment of software development costs

8(d)

-880

-720

IAS7(16)(e)

Loans to related parties Financing activities

-1,180

-730

IAS7(39)

Proceeds from sale of engineering division

15

3,110

–

IAS7(16)(b)

Proceeds from sale of property, plant and equipment

9,585

639

IAS7(16)(d),IAS7(14)

Proceeds from sale of financial assets at fair value through other comprehensive income

1,375

820

IAS7(16)(f)

Repayment of loans by related parties

469

626

IAS7(38)

Dividends from joint ventures and associates

16(e)

160

220

IAS7(31),IAS7(33)

Other dividends ⁴

3,300

4,300

IAS7(31),IAS7(33)

Interest received on financial assets held as investments ⁴

258

249

Net cash (outflow) from investing activities

-13,949

-15,402

IAS7(10),IAS7(21)

Cash flows from financing activities

IAS7(17)(a)

Proceeds from issues of shares and other equity securities

9(a)

12,413

–

Proceeds from calls on shares and calls in arrears

9(a)

1,500

–

IAS7(17)(c)

Proceeds from borrowings Financing activities

10(c)

46,053

25,796

IAS7(17)(b)

Payments for shares bought back Financing activities

9(a)

-1,350

–

IAS7(17)(b)

Acquisition of treasury shares Financing activities

-1,217

-299

Share issue and buy-back transaction costs

9(a)

-245

–

IAS7(17)(d)

Repayment of borrowings Financing activities

10(c)

-33,484

-24,835

IAS7(17)(e)

Principal elements of lease payments (2018 – Principal elements of finance lease payments) ⁶

10(c)

-1,942

-835

IAS7(42A),IAS7(42B)

Transactions with non-controlling interests

16(c)

-1,500

–

IAS7(31),IAS7(34)

Dividends paid to company’s shareholders

13(b)

-22,357

-10,479

IAS7(31),IAS7(34)

Dividends paid to non-controlling interests in subsidiaries

16(b)

-3,017

-1,828

Net cash (outflow) from financing activities

-5,146

-12,480

Net increase in cash and cash equivalents

24,632

6,260

Cash and cash equivalents at the beginning of the financial year

28,049

21,573

IAS7(28)

Effects of exchange rate changes on cash and cash equivalents

-248

216

Cash and cash equivalents at end of year

7(e)

52,433

28,049

IAS7(43)

Non-cash financing and investing activities

10(b)

–

–

IFRS5(33)(c)

Cash flows of discontinued operation ⁷

15

–

–

Not mandatory

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

IFRS Explanations – Statement of cash flows

IAS 7 6,

IAS 7 7

Definition of cash and cash equivalents

1. Cash is cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value. Investments normally only qualify as cash equivalent if they have a short maturity of three months or less from the date of acquisition. Financial instruments can only be included if they are in substance cash equivalents, e.g. debt investments with fixed redemption dates that are acquired within three months of their maturity.

IAS 7 16

Reporting cash flows

Expenditure on unrecognised assets to be classified as operating cash flows

2. Cash flows can only be classified as arising from investing activities if they result in the recognition of an asset in the balance sheet. Examples of expenditure that should be classified as operating cash flows on this basis are:

1. expenditures on exploration or evaluation activities, unless the entity has a policy of capitalising these expenditures as permitted under IFRS 6 Exploration for and Evaluation of Mineral Resources

2. expenditures on advertising or promotional activities, staff training and research and development, and

3. transaction costs related to a business combination.

IAS 7 22 – 24

Disclosing cash flows on a gross or net basis

3. Cash inflows and outflows must generally be reported gross unless they relate to:

1. cash receipts and payments on behalf of customers which reflect the activities of the customer rather than the entity, or

2. items in which the turnover is quick, the amounts are large, and the maturities are short. Financial institutions may also report certain cash flows on a net basis.

IAS 7 31 – 34

Interest, dividends and taxes

4. IAS 7 does not specify how to classify cash flows from interest paid and interest and dividends received. IFRS Reporting Entity Corp. has chosen to present interest paid and interest received on financial assets held for cash management purposes as operating cash flows, but dividends and interest received on other financial assets as investing cash flows because they are returns on the group’s investments. Dividends paid are classified in this publication as financing cash flows, because they are a cost of obtaining financial resources. However, they could also be classified as operating cash flows, to assist users in determining the ability of an entity to pay dividends out of operating cash flows.

IAS 7 35

5. Cash flows arising from income taxes must be separately disclosed and are classified as operating cash flows unless they can be specifically identified with financing or investing activities.

IFRS 16 59

Leases

6. Cash flows relating to leases must be presented as follows:

1. cash payments for the principal portion of the lease liabilities as cash flows from financing activities

2. cash payments for the interest portion consistent with presentation of interest payments chosen by the group, and

3. short-term lease payments, payments for leases of low-value assets and variable lease payments that are not included in the measurement of the lease liabilities as cash flows from operating activities.

IFRS 5 33(c)

Discontinued operations

7. Entities must disclose separately the net cash flows attributable to each of operating, investing and financing activities of discontinued operations. There are different ways of presenting this information, but the underlying principle is that the cash flow statement must give the cash flows for the total entity, including both continuing and discontinued operations. Entities might comply with the disclosure requirements in the following ways:

1. No presentation of cash flows from discontinued operations on the face of the cash flow statement (that is, gross cash flows are presented), with a breakdown between the three categories presented in the notes. This is the presentation chosen by IFRS Reporting Entity Corp., see note 15.
2. Cash flows from discontinued operations are split between the three relevant categories on the face of the cash flow statement, with one line being included within each category including the relevant results from discontinued operation. A total is presented for each category.
3. Information is presented separately for continuing and discontinued operations on a line-by-line basis, on the face of the cash flow statement. A total is presented for each category.

Notes

2019

CU ‘000

2018

CU ‘000

Profit before income tax from:

–Continuing operations

51,086

39,675

-Discontinued operations

15

1,111

570

IAS7(18)(b),IAS7(20)

Profit before income tax including discontinued operations

52,197

40,245

Adjustments for:

– Depreciation and amortisation

5(c)

12,540

9,518

– Impairment of goodwill

4

2,410

–

– Write-off of assets destroyed by fire

4

1,210

–

– Non-cash employee benefits expense – share-based payments

2,156

1,353

– Net (gain)/loss on sale of non-current assets

-1,620

530

– Gain on disposal of engineering division

15

-760

–

– Fair value adjustment to investment property

8(b)

-1,350

-1,397

– Fair value adjustment to derivatives

-11

621

– Fair value (gains)/losses on non-current financial assets at fair value through profit or loss

7(d)

-120

–

– Share of profits of associates and joint ventures

16(e)

-340

-355

– Gain on derecognition of contingent consideration payable

14

-135

–

– Gain on remeasurement of contingent consideration receivable

15

-130

–

– Dividend income and interest classified as investing cash flows

-3,558

-4,549

– Finance costs – net

5,875

5,450

– Net exchange differences

5(d)

604

479

Change in operating assets and liabilities, net of effects from purchase of controlled entity and sale of engineering division:

– (Increase) in trade receivables

-6,470

-4,647

– Decrease/(increase) in contract assets

1,258

-1,220

– (Increase) in inventories

-1,340

-1,832

– Decrease/(increase) in financial assets at fair value through profit or loss

465

-1,235

– Decrease in other operating assets

87

5,202

– Increase/(decrease) in trade creditors

1,429

-36

– Increase in contract liabilities

457

870

– Increase in other operating liabilities

-251

-46

– Increase in other provisions

1,215

574

Cash generated from operations

65,818

49,525

2019

CU ‘000

2018

CU ‘000

IAS7(43)

Acquisition of plant and equipment by means of finance leases (note 7(g))

–

3,000

IAS7(43)

Acquisition of retail store furniture and fittings from lessor as lease incentive (note 8(a))

–

950