b'Annual Report & Accounts 2022 Mercia Asset Management PLC 77Consolidated statement of cash flowsFor the year ended 31 March 2022Year ended Year ended31 March 31 March2022 2021Note 000 000Cash flows from operating activities:Operating profit 22,925 33,970Adjustments to reconcile operating profit to net cash generated from operating activities:Depreciation of property, plant and equipment 15 70 70Depreciation of right-of-use assets 16 154 142Gain on sale of direct investment 17 (9,878) (20,251)Fair value movements in direct investments 4 (11,385) (10,088)Share-based payments charge 6 1,109 543Amortisation of intangible assets 14 2,033 2,317Movement in fair value of deferred consideration 22 522 365Working capital adjustments: Financial statementsDecrease/(increase) in trade and other receivables 18 2,986 (2,762)Increase in trade and other payables 614 1,305Net cash generated from operating activities 9,150 5,611Cash flows from direct investment activities:Sale of direct investments 17 16,309 36,987Purchase of direct investments 17 (19,884) (15,647)Investee company loan repayments 17 1,500 250Investee company loan interest and redemption premiums received 8 4,438 50Net cash generated from direct investment activities 2,363 21,640Cash flows from other investing activities:Interest received from cash, cash equivalents and STLI 8 14 18Purchase of property, plant and equipment 15 (76) (52)Purchase of fund management contracts 22 (2,100) (2,100)(Increase)/decrease in short-term liquidity investments 19 (5,001) 5,981Net cash (used in)/generated from other investing activities (7,163) 3,847Net cash (used in)/generated from total investing activities (4,800) 25,487Cash flows from financing activities:Dividends paid 12 (2,641) (440)Interest paid 9 (15) (20)Payment of lease liabilities (136) (118)Net cash used in financing activities (2,792) (578)Net increase in cash and cash equivalents 1,558 30,520Cash and cash equivalents at the beginning of the year 54,491 23,971Cash and cash equivalents at the end of the year 19 56,049 54,491'