REINET
Reinet Investments S.C.A. Annual Report and Accounts 2010
7
CASH FLOW
Six-month
Year ended
period ended
31 March 2010
31 March 2009
m
m
m
m
Investing activities
Government bond fund
(100)
(100)
Investments made
(71)
(19)
Proceeds of sale of investments
5
(166)
(119)
Dividends, interest and other income received
87
5
Operating and related expenses
(9)
(6)
Net cash outflow
(88)
(120)
Opening cash position
231
1 482
Less cash flow relating to discontinued operations
231
(1 131)
351
Closing cash position
143
231
Liquid funds were held as follows:
Cash
143
231
Government bond fund
200
100
Total
343
331
An additional
100 million was added to the euro-denominated government bond fund
during the year. In accordance with International Financial Reporting Standards (`IFRS'), this
is shown as an investment rather than liquid funds in the balance sheet, notwithstanding that
the funds are readily realisable and short-term in nature. These funds are invested principally
in short-term French and German bonds. In addition to bank deposits of
143 million,
Reinet held
200 million on deposit in the government bond fund at 31 March 2010. In
total, available liquid funds therefore amounted to
343 million at the balance sheet date.
Liquid funds increased by
12 million over the year to 343 million as the inflow from
dividends received from BAT, net of operating expenses, was substantially offset by the
amounts invested in new investments.
Investments totalling
71 million were made during the year, including 25 million in
respect of US real-estate-related opportunities and
22 million in respect of investments
in Trilantic. The balance relates to other unlisted investments. Two small investments were
sold during the year, generating proceeds of
5 million.
Dividends of
84 million were received from BAT in the year, comprising a final dividend
in respect of the 2008 financial year of
59 million (£ 52 million) and an interim dividend
for 2009 of
25 million (£ 23 million).
Recognising the need to accumulate retained earnings within Reinet Fund and taking into
account the uncertain economic environment, the Board of the General Partner believes it
prudent not to propose any dividend at this time.