b'82 Mercia Asset Management PLC Annual Report and Accounts 2021Consolidated cash flow statementFor the year ended 31 March 2021Year ended Year ended31 March 31 March2021 2020Note 000 000cash flows from operating activities:Operating profit/(loss) 33,970 (17,833)adjustments to reconcile operating profit/(loss) to net cash flows used in operating activities:Depreciation of property, plant and equipment 17 70 73Depreciation of right-of-use assets 18 142 139Gain on sale of direct investments 19 (20,251) Fair value movements in direct investments 4 (10,088) 15,844Share-based payments charge 6 543 528Amortisation of intangible assets 16 2,317 852Movement in fair value of contingent consideration 24 365 Working capital adjustments:Increase in trade and other receivables 20 (2,762) (514)Increase in trade and other payables 22 1,305 1,209net cash generated from operating activities 5,611 298cash flows from direct investment activities:Sale of direct investments 19 36,987 Purchase of direct investments 19 (15,647) (17,449)Investee company loan repayments 19 250 1,793net cash generated from/(used in) direct investment activities 21,590 (15,656)cash flows from other investing activities:Purchase of property, plant and equipment 17 (52) (45)Investee company loan redemption premiums and interest received 9 68 245Purchase of fund management contracts 24 (2,100) (12,400)Decrease/(increase) in short-term liquidity investments 21 5,981 (1,027)net cash generated from/(used in) other investing activities 3,897 (13,227)net cash generated from/(used in) total investing activities 25,487 (28,883)cash flows from financing activities:Dividend paid 13 (440) Interest paid 10 (20) (26)Proceeds from the issue of Ordinary shares 2630,000Transaction costs relating to the issue of Ordinary shares 27(1,879)Payment of lease liabilities (118) (120)net cash (used in)/generated from financing activities (578) 27,975net increase/(decrease) in cash and cash equivalents 30,520 (610)Cash and cash equivalents at the beginning of the year 23,971 24,581cash and cash equivalents at the end of the year 21 54,491 23,971'