Notes forming part of the group financial statements

19 Notes to the Group cash flow statement

(a) Reconciliation of operating surplus to net cash inflow from operating activities

	2005	2004 (as restated)
	€’000	€’000
Operating surplus before interest, tax, depreciation and amortisation	17,395	23,743
Difference between pension charge and cash contributions	5,009	3,831
Amortisation of prepaid grants-in-aid	(1,472)	(1,095)
Increase in debtors	(6,116)	(9,198)
Increase in creditors	5,874	13,540
Net cash inflow from operating activities	20,690	30,821

(b) Gross cash flows

	2005	2004
	€’000	€’000
Returns on investments and servicing of finance
Interest received	1,597	1,160
Interest paid	-	(1)
	1,597	1,159
Taxation
Capital gains tax paid on gain on disposal of surplus transmitter site (note 4)	-	(3,266)

	2005	2004
	€’000	€’000
Capital expenditure and financial (investment)/divestment
Payments to acquire tangible fixed assets	(15,158)	(10,868)
Capital grants received	868	868
Net proceeds from the disposal of surplus transmitter site (note 4)	-	16,867
Receipts from sales of tangible fixed assets/insurance proceeds	1,460	155
Proceeds from sale of financial assets	2,120	-
	(10,710)	7,022

	2005	2004
	€’000	€’000
Management of liquid resources
Movement in bank term deposits	(5,938)	(24,607)

(c) Analysis of changes in net funds

	2005	2004	Cash Flow
	€’000	€’000	€’000
Cash at bank	1,872	3,273	(1,401)
Liquid resources (term deposits)	65,894	59,956	5,938
	67,766	63,229	4,537

(d) Reconciliation of net cash flow to movement in net funds

	2005	2004
	€’000	€’000
(Decrease)/increase in cash	(1,401)	1,356
Increase in liquid resources	5,938	24,607
Increase in net funds	4,537	25,963
Net funds at beginning of year	63,229	37,266
Net funds at end of year	67,766	63,229