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	2007 $million	2006 $million
Net cash inflow from operating activities
Profit before taxation	469	550
Add net interest payable/(Less net interest receivable)	30	(10)
Depreciation, amortisation and impairment	237	169
Share based payment expense	23	14
Utilisation of Plus inventory stepped-up on acquisition	64	–
Movement in working capital and provisions	(130)	(217)
Cash generated from operations (C)	693	506
Net interest (paid)/received	(30)	10
Income taxes paid	(225)	(144)
Net cash inflow from operating activities	438	372
Cash flows from investing activities
Acquisitions (D)	(781)	(83)
Disposal of the joint venture	–	537
Capital expenditure	(194)	(222)
Net cash (used in)/provided by investing activities (E)	(975)	232
Cash flows from financing activities
Proceeds from issue of ordinary share capital	28	16
Treasury shares purchased	(640)	–
Cash movements in borrowings	1,078	(293)
Settlement of currency swaps	(14)	(10)
Equity dividends paid	(105)	(96)
Net cash provided by/(used in) financing activities	347	(383)
Net (decrease)/increase in cash and cash equivalents	(190)	221
Cash and cash equivalents at beginning of year	291	65
Exchange adjustments	8	5
Cash and cash equivalents at end of year (F)	109	291

C. After $23 million (2006 – $33 million) unreimbursed by insurers relating to macrotextured knee revisions offset by a receipt of $22 million (2006 – nil) from a successful legal settlement, $33 million (2006 – $4 million) of acquisition related costs, $39 million (2006 – $21 million) of outgoings on restructuring, rationalisation expenses and acquisition costs and a legal settlement of $30 million (2006 – nil).
D. Net of $18 million of cash and overdrafts acquired with Plus in 2007 (2006 – $2 million cash acquired with acquisitions).
E. Discontinued operations accounted for nil (2006 – $537 million) of net cash flow from investing activities.
F. Cash and cash equivalents at the end of the period are net of overdrafts of $61 million (2006 – $55 million).