REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd RETURNS, RISK AND CAPITAL MANAGEMENT This section sets out the policies and procedures applied to manage capital structure and the related risks and rewards. Capital structure is managed in such a way so as to maximise shareholder return, maintain optimal cost of capital and provide flexibility for strategic investment. 8. Cash and cash equivalents Accounting policies Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of less than 12 months and are subject to an insignificant risk of change in value. For cash flow statement presentation purposes, cash and cash equivalents are as defined above, net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Consolidated Statement of Financial Position. 2021 $’000 2020 $’000 Cash at bank and in hand 168,410 222,407 Short-term deposits 459 438 Total cash and short-term deposits 168,869 222,845 (a) Cash flow reconciliation 2021 $’000 2020 $’000 Profit for the year 312,983 112,585 Depreciation and amortisation 82,612 78,620 Impairment charges – 148,569 Share-based payment expense 9,097 4,931 Net exchange differences 3,661 (2,789) Share of (gains)/losses of associates and joint ventures (12,618) 15,411 Share-based payment on settlement of LTI Plans – (1,407) Contingent consideration revaluation and unwind – (1) Other non-cash items 580 5,854 Change in operating assets and liabilities Acquisition of net working capital 29,097 3,129 Divestment of subsidiary – (1,742) (Increase)/Decrease in trade receivables (34,047) 19,177 (Increase)/Decrease in other current assets (114,263) (412) Decrease/(Increase) in deferred tax assets (2,826) 2,409 (Increase) in other non-current assets (287,126) (14,533) Increase in trade and other payables 313,510 30,195 Increase in contract liabilities 18,308 7,519 (Decrease)/Increase in provisions 8,787 (7,960) (Decrease)/Increase in deferred tax liabilities 37,321 (10,970) (Decrease)/Increase in current tax liabilities (43,625) 30,561 Net cash inflow from operating activities 321,451 419,146 Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 83