Franchise Brands plc Annual Report and Accounts 2018 53 Financial Statements Governance Strategic Report Note 2018 £'000 2017 £'000 Cash flows from operating activities Profit for the year 2,986 403 Adjustments for: Finance expenses 8 305 273 Income tax expense (44) (202) Share-based payment expense 50 24 Cash generated from operations 3,297 498 Decrease/(increase) in trade and other receivables 14 503 (151) Increase in trade and other payables 15 31 190 Net cash generated from operating activities 3,831 537 Cash flows from investing activities Acquisition of subsidiary including costs (1,607) (29,125) Net cash used in investing activities (1,607) (29,125) Cash flows from financing activities Bank loans – repaid (1,600) (6,417) Bank loans – received – 15,330 Interest paid – bank and other loans (279) (186) Proceed from issue of shares – 20,000 Share issue expenses and other expenses of IPO – (444) Purchase of Treasury shares (151) – Dividends paid 23 (420) (213) Net cash flows generated by financing activities (2,450) 28,070 Net (decrease)/increase in cash and cash equivalents (226) (518) Cash and cash equivalents at beginning of year 232 750 Cash and cash equivalents at end of year 6 232 Reconciliation of cash flow to the Company net debt position Group Term Loan £'000 Revolving credit facility £'000 Loan fees £'000 Total liabilities from financing activities £'000 Cash £'000 Total net cash/(net debt) £'000 At 1 January 2017 (417) – – (417) 750 333 Financing cash flows (5,583) (3,500) 170 (8,913) – (8,913) Other cash flows – – – – (518) (518) Other changes (58) (6) (25) (89) – (89) At 1 January 2018 (6,058) (3,506) 145 (9,419) 232 (9,187) Financing cash flows 600 1,000 – 1,600 – 1,600 Other cash flows – – – – (226) (226) Other changes 23 (8) (35) (21) – (21) At 31 December 2018 (5,435) (2,514) 110 (7,840) 6 (7,834) COMPANY STATEMENT OF CASH FLOWS For the year ended 31 December 2018