Preliminary Results - Part 2

RNS Number : 1519J

Kingfisher PLC

25 March 2010

 



Consolidated income statement
Year ended 30 January 2010
				2009/10			2008/09
		Before	Exceptional		Before	Exceptional
		exceptional	items		exceptional	items
£ millions	Notes	items	(note 4)	Total	items	(note 4)	Total
Sales	3	10,503	-	10,503	10,026	-	10,026
Cost of sales		(6,706)	-	(6,706)	(6,504)	(21)	(6,525)
Gross profit		3,797	-	3,797	3,522	(21)	3,501
Selling and distribution expenses		(2,712)	-	(2,712)	(2,624)	(105)	(2,729)
Administrative expenses		(536)	-	(536)	(496)	(124)	(620)
Other income		31	17	48	22	13	35
Share of post-tax results of joint ventures and associates		26	-	26	22	(36)	(14)
Operating profit		606	17	623	446	(273)	173
Analysed as:
Retail profit	3	664	17	681	503	(113)	390
Impairment of goodwill and investment in associate		-	-	-	-	(160)	(160)
Central costs		(41)	-	(41)	(41)	-	(41)
Share of interest and tax of joint ventures and associates		(17)	-	(17)	(16)	-	(16)
Finance costs		(76)	-	(76)	(119)	-	(119)
Finance income		19	-	19	36	-	36
Net finance costs	5	(57)	-	(57)	(83)	-	(83)
Profit before taxation		549	17	566	363	(273)	90
Income tax expense	6	(174)	(7)	(181)	(95)	7	(88)
Profit from continuing operations		375	10	385	268	(266)	2
Profit from discontinued operations		-	-	-	26	178	204
Profit for the year		375	10	385	294	(88)	206
Attributable to:
Equity shareholders of the Company				388			209
Minority interests				(3)			(3)
				385			206
Earnings per share	7
Continuing operations:
Basic				16.5p			0.2p
Diluted				16.4p			0.2p
Adjusted basic				16.4p			11.0p
Adjusted diluted				16.3p			11.0p
Total operations:
Basic				16.5p			8.9p
Diluted				16.4p			8.9p

The proposed final dividend for the year ended 30 January 2010, subject to approval by shareholders at the Annual General Meeting, is 3.575p per share.

Consolidated statement of comprehensive income Year ended 30 January 2010
£ millions	Notes		2009/10	2008/09
Profit for the year			385	206
Actuarial losses on post employment benefits	9		(165)	(191)
Currency translation differences
Group			15	159
Joint ventures and associates			(6)	32
Gains transferred to income statement			-	(80)
Cash flow hedges
Fair value (losses)/gains			(13)	33
Gains transferred to inventories			(5)	(10)
Tax on other comprehensive income			55	35
Other comprehensive income for the year			(119)	(22)
Total comprehensive income for the year			266	184
Attributable to:
Equity shareholders of the Company			271	180
Minority interests			(5)	4
			266	184

Consolidated statement of changes in equity Year ended 30 January 2010
	Attributable to equity shareholders of the Company
£ millions	Notes	Share capital	Share premium	Own shares held	Retained earnings	Other reserves	Total	Minority interests	Total equity
At 1 February 2009		371	2,188	(57)	1,768	513	4,783	15	4,798
Profit for the year		-	-	-	388	-	388	(3)	385
Actuarial losses on post employment benefits	9	-	-	-	(165)	-	(165)	-	(165)
Currency translation differences Group		-	-	-	-	17	17	(2)	15
Joint ventures and associates		-	-	-	-	(6)	(6)	-	(6)
Cash flow hedges Fair value losses		-	-	-	-	(13)	(13)	-	(13)
Gains transferred to inventories		-	-	-	-	(5)	(5)	-	(5)
Tax on other comprehensive income		-	-	-	45	10	55	-	55
Other comprehensive income for the year		-	-	-	(120)	3	(117)	(2)	(119)
Total comprehensive income for the year		-	-	-	268	3	271	(5)	266
Share-based compensation		-	-	-	20	-	20	-	20
Shares issued under share schemes		-	3	-	-	-	3	-	3
Own shares purchased		-	-	(7)	-	-	(7)	-	(7)
Own shares disposed		-	-	10	(10)	-	-	-	-
Dividends		-	-	-	(125)	-	(125)	-	(125)
At 30 January 2010		371	2,191	(54)	1,921	516	4,945	10	4,955
At 3 February 2008		371	2,188	(66)	1,815	405	4,713	11	4,724
Profit for the year		-	-	-	209	-	209	(3)	206
Actuarial losses on post employment benefits	9	-	-	-	(191)	-	(191)	-	(191)
Currency translation differences      Group		-	-	-	-	152	152	7	159
Joint ventures and associates		-	-	-	-	32	32	-	32
Gains transferred to income     statement		-	-	-	-	(80)	(80)	-	(80)
Cash flow hedges Fair value gains		-	-	-	-	33	33	-	33
Gains transferred to inventories		-	-	-	-	(10)	(10)	-	(10)
Tax on other comprehensive income		-	-	-	54	(19)	35	-	35
Other comprehensive income for the year		-	-	-	(137)	108	(29)	7	(22)
Total comprehensive income for the year		-	-	-	72	108	180	4	184
Share-based compensation		-	-	-	15	-	15	-	15
Own shares disposed		-	-	9	(9)	-	-	-	-
Dividends		-	-	-	(125)	-	(125)	(1)	(126)
Capital injections from minority interests		-	-	-	-	-	-	1	1
At 31 January 2009		371	2,188	(57)	1,768	513	4,783	15	4,798

Consolidated balance sheet
At 30 January 2010
£ millions	Notes	2009/10	2008/09
Non-current assets
Goodwill		2,395	2,396
Other intangible assets		70	73
Property, plant and equipment		3,612	3,699
Investment property		24	24
Investments in joint ventures and associates		234	219
Deferred tax assets		27	26
Derivatives		81	180
Other receivables		22	17
		6,465	6,634
Current assets
Inventories		1,545	1,792
Trade and other receivables		494	508
Derivatives		24	107
Current tax assets		58	33
Cash and cash equivalents		1,260	1,157
		3,381	3,597
Total assets		9,846	10,231
Current liabilities
Trade and other payables		(2,374)	(2,362)
Borrowings		(647)	(389)
Derivatives		(25)	(38)
Current tax liabilities		(348)	(206)
Provisions		(36)	(69)
		(3,430)	(3,064)
Non-current liabilities
Other payables		(74)	(33)
Borrowings		(883)	(1,907)
Derivatives		(47)	(76)
Deferred tax liabilities		(197)	(226)
Provisions		(62)	(53)
Post employment benefits	9	(198)	(74)
		(1,461)	(2,369)
Total liabilities		(4,891)	(5,433)
Net assets		4,955	4,798
Equity
Share capital		371	371
Share premium		2,191	2,188
Own shares held		(54)	(57)
Retained earnings		1,921	1,768
Other reserves		516	513
Total attributable to equity shareholders of the Company		4,945	4,783
Minority interests		10	15
Total equity		4,955	4,798

The financial statements were approved by the Board of Directors on 24 March 2010 and signed on its behalf by:

Ian Cheshire                                                                        Kevin O'Byrne

Group Chief Executive                                                        Group Finance Director

Consolidated cash flow statement
Year ended 30 January 2010
£ millions	Notes	2009/10	2008/09
Operating activities
Cash generated by operations	10	1,130	867
Income tax paid		(151)	(77)
French tax receipt	6	148	-
Net cash flows from operating activities		1,127	790
Investing activities
Purchase of minority interests		-	(7)
Purchase of property, plant and equipment, investment property and intangible assets		(256)	(390)
Disposal of property, plant and equipment, investment property and intangible assets		59	62
Disposal of other investments		-	12
Dividends received from joint ventures and associates		5	3
Net cash flows from investing activities		(192)	(320)
Financing activities
Interest paid		(72)	(111)
Interest element of finance lease rental payments		(5)	(5)
Interest received		14	22
Repayment of bank loans		(130)	(37)
Repayment of Medium Term Notes and other fixed term debt		(500)	-
Receipt/(payment) on financing derivatives		78	(5)
Capital element of finance lease rental payments		(14)	(12)
Issue of share capital to minority interests		-	1
Purchase of own shares		(7)	-
Dividends paid to equity shareholders of the Company		(125)	(125)
Dividends paid to minority interests		-	(1)
Net cash flows from financing activities		(761)	(273)
Net increase in cash and cash equivalents and bank overdrafts
from continuing operations		174	197
Net cash flows from operating activities		-	23
Net cash flows from investing activities		-	522
Net cash flows from financing activities		-	1
Net increase in cash and cash equivalents and bank overdrafts
from discontinued operations		-	546
Net increase in cash and cash equivalents and bank overdrafts		174	743
Cash and cash equivalents and bank overdrafts at beginning of year		994	195
Exchange differences		(33)	56
Cash and cash equivalents and bank overdrafts at end of year	11	1,135	994

Notes to the consolidated financial statements

1          General information

Kingfisher plc ('the Company'), its subsidiaries, joint ventures and associates (together 'the Group') supply home improvement products and services through a network of retail stores and other channels, located mainly in the United Kingdom, continental Europe and China.

The address of its registered office is 3 Sheldon Square, Paddington, London W2 6PX.

The Company is listed on the London Stock Exchange.

2          Basis of preparation

The consolidated financial statements of the Company, its subsidiaries, joint ventures and associates are made up to the nearest Saturday to 31 January each year.  The current financial year is the 52 weeks ended 30 January 2010 ('the year').  The comparative financial year is the 52 weeks ended 31 January 2009 ('the prior year'). This only impacts the UK operations with all of the other operations reporting on a calendar basis as a result of local statutory requirements.

The Directors of Kingfisher plc, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed financial information for the year ended 30 January 2010.

The condensed financial information, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated balance sheet, consolidated cash flow statement and related notes do not constitute statutory financial statements for the 52 weeks ended 30 January 2010, but are derived from those statements. Statutory financial statements for 2009/10 will be filed with the Registrar of Companies in due course.  The Group's auditors have reported on those accounts; their reports were unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006. Copies of the Annual Report and Accounts for 2009/10 will be posted to shareholders during the week beginning 26 April 2010. Statutory financial statements for 2008/09 have been filed with the Registrar of Companies. The Group's former auditors have reported on those accounts; their reports were unqualified and did not contain statements under Section 237 (2) or (3) of the Companies Act 1985. 

The condensed financial information has been abridged from the 2009/10 statutory financial statements, which have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRIC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The condensed financial information has been prepared under the historical cost convention, as modified by the use of valuations for certain financial instruments, share-based payments and post employment benefits.

The principal new standards and amendments to standards, which are mandatory for the first time for the financial year beginning 1 February 2009, are as follows:

IAS 1 (revised)

Presentation of financial statements

Requires non-owner changes in equity to be shown in either one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Group has elected to present two statements. Owner changes in equity are required to be shown in a statement of changes in equity.

IFRS 8

Operating segments

IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. This has resulted in Ireland moving from 'Other International' to 'UK & Ireland' (previously 'UK'). Refer to note 3 for further information.

Principal rates of exchange

		2009/10		2008/09
	Average rate	Year end rate	Average rate	Year end rate
Euro/£	1.13	1.15	1.24	1.12
US Dollar/£	1.58	1.61	1.81	1.44
Polish Zloty/£	4.86	4.69	4.39	5.02
Chinese Renminbi/£	10.79	11.01	12.51	9.86

Use of non-GAAP measures

Kingfisher believes that retail profit, adjusted pre-tax profit, effective tax rate, adjusted post-tax profit and adjusted earnings per share provide additional useful information on underlying trends to shareholders. These and other non-GAAP measures such as net debt are used by Kingfisher for internal performance analysis and incentive compensation arrangements for employees. The terms 'retail profit', 'exceptional items', 'adjusted', 'effective tax rate' and 'net debt' are not defined terms under IFRS and may therefore not be comparable with similarly titled measures reported by other companies. They are not intended to be a substitute for, or superior to, GAAP measures.

Retail profit is defined as continuing operating profit before central costs (principally the costs of the Group's head office), exceptional items, amortisation of acquisition intangibles and the Group's share of interest and tax of joint ventures and associates.

The separate reporting of non-recurring exceptional items, which are presented as exceptional within their relevant income statement category, helps provide an indication of the Group's underlying business performance. The principal items which are included as exceptional items are:

·      non trading items included in operating profit such as profits and losses on the disposal, closure or impairment of subsidiaries, joint ventures, associates and investments which do not form part of the Group's trading activities;

·      profits and losses on the disposal of properties; and

·      the costs of significant restructuring and incremental acquisition integration costs.

The term 'adjusted' refers to the relevant measure being reported for continuing operations excluding exceptional items, financing fair value remeasurements, amortisation of acquisition intangibles, related tax items and prior year tax items. Financing fair value remeasurements represent changes in the fair value of financing derivatives, excluding interest accruals, offset by fair value adjustments to the carrying amount of borrowings and other hedged items under fair value hedge relationships. Financing derivatives are those that relate to underlying items of a financing nature.

The effective tax rate represents the effective income tax expense as a percentage of continuing profit before taxation excluding exceptional items. Effective income tax expense is the continuing income tax expense excluding tax on exceptional items and tax adjustments in respect of prior years and changes in tax rates.

Net debt comprises borrowings and financing derivatives (excluding accrued interest), less cash and cash equivalents and current other investments.

3        Segmental analysis

Income statement

	2009/10
£ millions	UK & Ireland	France	Other International		Total
			Poland	Other
Sales	4,442	4,242	1,012	807	10,503
Retail profit	217	322	125	-	664
Exceptional items					17
Central costs					(41)
Share of interest and tax of joint ventures and associates					(17)
Operating profit					623
Net finance costs					(57)
Profit before taxation					566

	2008/09 Restated
£ millions	UK & Ireland	France	Other International		Total
			Poland	Other
Sales	4,379	3,888	1,036	723	10,026
Retail profit	132	283	124	(36)	503
Exceptional items					(273)
Central costs					(41)
Share of interest and tax of joint ventures and associates					(16)
Operating profit					173
Net finance costs					(83)
Profit before taxation					90

The operating segments disclosed above are based on the information reported internally to the Board of Directors and Group Executive. This information is predominately based on the geographical areas in which the Group operates and which are managed separately. The Group only has one business segment being the supply of home improvement products and services.

The 'Other International' segment consists of Poland, China, Spain, Russia, the joint venture Koçtaş in Turkey and the associate Hornbach which has operations in Germany and other European countries. Poland has been shown separately due to its significance.

The income statement is presented on a continuing operations basis. Central costs principally comprise the costs of the Group's head office.

Following adoption of IFRS 8, 'Operating segments', comparatives have been restated to reflect the move of Ireland from 'Other International' to 'UK & Ireland' (previously 'UK'). No other information in the condensed financial information has been restated as a result of this change.

4        Exceptional items

£ millions	2009/10	2008/09
Included within cost of sales
China restructuring	-	(21)
	-	(21)
Included within selling and distribution expenses
China restructuring	-	(86)
UK restructuring	-	(19)
	-	(105)
Included within administrative expenses
Impairment of goodwill	-	(124)
	-	(124)
Included within other income
Profit on disposal of properties	17	13
	17	13
Included within share of post-tax results of joint ventures and associates
Impairment of investment in Hornbach	-	(36)
	-	(36)
Exceptional items before tax	17	(273)
Tax on exceptional items	(7)	7
Exceptional items - continuing operations	10	(266)
Exceptional items - discontinued operations	-	178
Exceptional items	10	(88)

The Group has recorded an exceptional profit of £17m on the disposal of properties (2008/09: £13m profit).

In the prior year, an exceptional loss of £107m was recorded relating to the B&Q China turnaround plan. The plan involved rationalising the store portfolio from 63 to 41 and then revamping the remaining stores. The exceptional loss comprised store asset impairments, lease exits, inventory write downs and employee redundancy costs. The total charge included £19m relating to the termination of leases, which was included within restructuring provisions, £55m relating to the impairment of property, plant and equipment and £21m relating to the write down of inventories.

In the prior year, the Group recorded an exceptional loss of £19m following the announcement that Trade Depot in the UK would be closed, which included a loss on disposal of properties of £6m.

In the prior year, an exceptional loss of £124m was recorded on the impairment of goodwill in China based on a review of its recoverable amount. The goodwill balance was fully written down.

In the prior year, an exceptional loss of £36m was recorded on the write down of the Group's investment in Hornbach.

In the prior year the Group disposed of Castorama Italy.

5        Net finance costs

 

£ millions	2009/10	2008/09
Bank overdrafts and bank loans	(25)	(23)
Medium Term Notes and other fixed term debt	(43)	(86)
Financing fair value remeasurements	2	(5)
Finance leases	(5)	(5)
Unwinding of discount on provisions	(4)	(3)
Expected net interest charge on defined benefit pension schemes	(4)	-
Capitalised interest	3	3
Finance costs	(76)	(119)
Cash and cash equivalents and current other investments	19	23
Expected net interest return on defined benefit pension schemes	-	13
Finance income	19	36
Net finance costs - continuing operations	(57)	(83)

6          Income tax expense

£ millions	2009/10	2008/09
UK corporation tax
Current tax on profits for the year	85	34
Adjustments in respect of prior years	(7)	(14)
	78	20
Overseas tax
Current tax on profits for the year	85	111
Adjustments in respect of prior years	(1)	6
	84	117
Deferred tax
Current year	4	(41)
Adjustments in respect of prior years	15	(8)
	19	(49)
Income tax expense - continuing operations	181	88

The effective rate of tax on profit from continuing operations before exceptional items and excluding tax adjustments in respect of prior years is 30% (2008/09: 31%). Tax on exceptional items for the year is a charge of £7m, all of which relates to current year items. In 2008/09 tax on exceptional items was a credit of £7m, all of which related to current year items.

Kingfisher paid €138m tax to the French tax authorities in the year ended 31 January 2004 as a consequence of the Kesa Electricals demerger and recorded this as an exceptional tax charge. Kingfisher appealed against this tax liability and the tribunal found in favour of Kingfisher in June 2009. As a result, on 7 September 2009 the Group received €169m (£148m) from the French tax authorities, representing a refund of the €138m and €31m of repayment supplement. The French tax authorities have appealed against this decision and therefore no income has been recognised.

7          Earnings per share

		2009/10			2008/09
	Earnings	Weighted average number of shares	Earnings per share	Earnings	Weighted average number of shares	Earnings per share
	£ millions	millions	pence	£ millions	millions	pence
Continuing operations:
Basic earnings per share	388	2,347	16.5	5	2,345	0.2
Dilutive share options		22	(0.1)		9	-
Diluted earnings per share	388	2,369	16.4	5	2,354	0.2
Basic earnings per share	388	2,347	16.5	5	2,345	0.2
Exceptional items	(17)		(0.7)	273		11.7
Tax on exceptional and prior year items	14		0.7	(23)		(1.0)
Financing fair value remeasurements	(2)		(0.1)	5		0.2
Tax on financing fair value remeasurements	1		-	(2)		(0.1)
Adjusted basic earnings per share	384	2,347	16.4	258	2,345	11.0
Diluted earnings per share	388	2,369	16.4	5	2,354	0.2
Exceptional items	(17)		(0.7)	273		11.7
Tax on exceptional and prior year items	14		0.7	(23)		(1.0)
Financing fair value remeasurements	(2)		(0.1)	5		0.2
Tax on financing fair value remeasurements	1		-	(2)		(0.1)
Adjusted diluted earnings per share	384	2,369	16.3	258	2,354	11.0
Total operations:
Basic earnings per share	388	2,347	16.5	209	2,345	8.9
Dilutive share options		22	(0.1)		9	-
Diluted earnings per share	388	2,369	16.4	209	2,354	8.9

Basic earnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number of shares in issue during the year, excluding those held in the Employee Share Ownership Plan Trust ('ESOP') which for the purpose of this calculation are treated as cancelled.

For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential ordinary shares. These represent share options granted to employees where both the exercise price is less than the average market price of the Company's shares during the year and any related performance conditions have been met.

8          Dividends

£ millions	2009/10	2008/09
Dividends to equity shareholders of the Company
Final dividend for the year ended 31 January 2009 of 3.4p per share (2 February 2008: 3.4p per share)	80	80
Interim dividend for the year ended 30 January 2010 of 1.925p per share (31 January 2009: 1.925p per share)	45	45
	125	125

The proposed final dividend for the year ended 30 January 2010 of 3.575p per share is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability.

9          Post employment benefits

	2009/10			2008/09
£ millions	UK	Other	Total	UK	Other	Total
(Deficit)/surplus in scheme at beginning of year	(40)	(34)	(74)	110	(33)	77
Current service cost	(19)	(3)	(22)	(20)	(3)	(23)
Interest on defined benefit obligations	(88)	(3)	(91)	(82)	(2)	(84)
Expected return on pension scheme assets	87	-	87	97	-	97
Actuarial losses	(160)	(5)	(165)	(186)	(5)	(191)
Contributions paid by employer	49	17	66	41	7	48
Disposal of subsidiaries	-	-	-	-	7	7
Exchange differences	-	1	1	-	(5)	(5)
Deficit in scheme at end of year	(171)	(27)	(198)	(40)	(34)	(74)

The assumptions used in calculating the costs and obligations of the Group's defined benefit pension schemes are set by the Directors after consultation with independent professionally qualified actuaries. The assumptions are based on the conditions at the time and changes in these assumptions can lead to significant movements in the estimated obligations, as illustrated in the sensitivity analysis.

The UK scheme discount rate is based on the yield on the iBoxx over 15 year AA-rated Sterling corporate bond index adjusted for the difference in term between iBoxx and scheme liabilities.  The overall expected rate of return on scheme assets reflects market expectations at the valuation date of long term asset returns and the mix of assets in the schemes.

		2009/10		2008/09
Annual % rate		UK	Other	UK	Other
Discount rate		5.5	5.3	6.5	5.3 to 5.5
Salary escalation		4.2	2.0 to 6.6	4.3	2.0 to 6.6
Rate of pension increases		3.4	-	3.5	-
Price inflation		3.4	2.0	3.5	2.0 to 2.5
		2009/10		2008/09
% rate of return		UK	Other	UK	Other
Equities		7.9	-	8.7	-
Bonds		4.7	-	5.6	-
Property		6.4	-	7.1	-
Other		4.2	3.5	4.3	3.5
Overall expected rate of return		5.9	3.5	6.7	3.5

For the UK scheme, the mortality assumptions used in the actuarial valuations have been selected with regard to the characteristics and experience of the membership of the scheme from 2004 to 2007. The assumptions for life expectancy of UK scheme members are as follows:

Years	2009/10	2008/09
Age to which current pensioners are expected to live (60 now)
- Male	87.2	87.2
- Female	85.9	85.9
Age to which future pensioners are expected to live (60 in 15 years time)
- Male	88.8	88.8
- Female	87.1	87.1

The following sensitivity analysis for the UK scheme shows the estimated impact on obligations resulting from changes to key actuarial assumptions, whilst holding all other assumptions constant.

Assumption	Change in assumption	Impact on defined benefit obligation
Discount rate	Increase/decrease by 0.1%	Decrease/increase by £31m
Salary escalation	Increase/decrease by 0.1%	Increase/decrease by £3m
Rate of pension increases	Increase/decrease by 0.1%	Increase/decrease by £17m
Price inflation	Increase/decrease by 0.1%	Increase/decrease by £28m
Mortality	Increase in life expectancy by one year	Increase by £48m

10       Cash generated by operations

£ millions	2009/10	2008/09
Operating profit	623	173
Share of post-tax results of joint ventures and associates	(26)	14
Depreciation and amortisation	260	265
Impairment losses	4	185
(Profit)/loss on disposal of property, plant and equipment, investment property and intangible assets	(1)	11
Share-based compensation charge	20	15
Decrease in inventories	234	169
(Increase)/decrease in trade and other receivables	(18)	69
Increase/(decrease) in trade and other payables	102	(23)
Movement in provisions	(24)	14
Movement in post employment benefits	(44)	(25)
Cash generated by operations - continuing operations	1,130	867

11        Net debt

£ millions	2009/10	2008/09
Cash and cash equivalents	1,260	1,157
Bank overdrafts	(125)	(163)
Cash and cash equivalents and bank overdrafts	1,135	994
Bank loans	(154)	(307)
Medium Term Notes and other fixed term debt	(1,186)	(1,757)
Financing derivatives	20	135
Finance leases	(65)	(69)
Net debt	(250)	(1,004)
£ millions	2009/10	2008/09
Net debt at beginning of year	(1,004)	(1,559)
Net increase in cash and cash equivalents and bank overdrafts	174	743
Disposal of current other investments	-	(12)
Repayment of bank loans	130	37
Repayment of Medium Term Notes and other fixed term debt	500	-
(Receipt)/payment on financing derivatives	(78)	5
Capital element of finance lease rental payments	14	12
Cash flow movement in net debt	740	785
Exchange differences and other non-cash movements	14	(230)
Net debt at end of year	(250)	(1,004)

Sterling bank loans of £75m have been repaid in the year, along with a reduction in the level of bank loans in China. €307m of a €550m MTN, €171m of a €500m MTN and £65m of a £150m MTN have been repurchased in the year. €307m of a €550m interest rate swap and £65m of a £150m interest rate swap have been cancelled in the year. A €330m cross-currency swap has matured in the year.

 

END

 

 

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