Consolidated income statement
For the 52 weeks ended 27 February 2010
|
|
|
52 weeks ended
27 February 2010
|
|
|
52 weeks ended
28 February 2009
|
|||
|
|
|
|
Total
|
|
Before exceptional items
|
Exceptional items
|
Total
|
|
|
|
|
Notes
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
6,022.7
|
|
5,897.4
|
-
|
5,897.4
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
(4,055.6)
|
|
(3,873.8)
|
-
|
(3,873.8)
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
1,967.1
|
|
2,023.6
|
-
|
2,023.6
|
|
|
|
|
|
|
|
|
|
|
|
Net operating expenses
|
|
|
|
(1,672.6)
|
|
(1,731.6)
|
(694.0)
|
(2,425.6)
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
|
|
294.5
|
|
292.0
|
(694.0)
|
(402.0)
|
|
|
|
|
|
|
|
|
|
|
|
- Finance income
|
|
|
|
46.1
|
|
63.7
|
-
|
63.7
|
|
- Finance expense
|
|
|
|
(45.6)
|
|
(53.5)
|
-
|
(53.5)
|
|
Net financing income
|
|
|
3
|
0.5
|
|
10.2
|
-
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
Share of post-tax loss of joint ventures and associates
|
|
|
|
(2.0)
|
|
(2.4)
|
-
|
(2.4)
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
|
|
293.0
|
|
299.8
|
(694.0)
|
(394.2)
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
|
|
|
(83.2)
|
|
(101.2)
|
82.3
|
(18.9)
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the year attributable to equity holders of the Company
|
|
|
|
209.8
|
|
198.6
|
(611.7)
|
(413.1)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
pence
|
|
|
|
pence
|
|
- Basic
|
|
|
5
|
24.3
|
|
|
|
(47.7)
|
|
- Diluted
|
|
|
5
|
24.1
|
|
|
|
(47.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
pence
|
|
|
|
pence
|
|
Proposed final dividend per share
|
|
|
10.0
|
|
|
|
10.0
|
||
Interim dividend per share
|
|
|
|
4.7
|
|
|
|
4.7
|
|
Proposed total dividend per share
|
|
|
14.7
|
|
|
|
14.7
|
Non-GAAP measures
|
52 weeks ended
27 February 2010
|
|
|
52 weeks ended
28 February 2009
|
|
Reconciliation of profit before tax (‘PBT’) to benchmark PBT
|
Notes
|
£m
|
|
|
£m
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
293.0
|
|
|
(394.2)
|
Adjusted for:
|
|
|
|
|
|
Exceptional items
|
|
-
|
|
|
694.0
|
Demerger incentive schemes
|
|
7.7
|
|
|
8.4
|
Financing fair value remeasurements
|
3
|
(2.7)
|
|
|
28.9
|
Financing impact on retirement benefit obligations
|
3
|
0.7
|
|
|
(11.2)
|
Discount unwind on non-benchmark items
|
3
|
6.7
|
|
|
1.8
|
Onerous lease provision releases
|
|
(12.5)
|
|
|
-
|
|
|
|
|
|
|
Benchmark PBT
|
|
292.9
|
|
|
327.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Benchmark earnings per share
|
|
pence
|
|
|
pence
|
- Basic
|
5
|
23.4
|
|
|
25.9
|
- Diluted
|
5
|
23.1
|
|
|
25.6
|
Consolidated statement of comprehensive income
For the 52 weeks ended 27 February 2010
|
|
52 weeks ended
27 February 2010
|
52 weeks ended
28 February 2009
|
|
|
£m
|
£m
|
Profit/(loss) for the year attributable to equity holders of the Company
|
|
209.8
|
(413.1)
|
|
|
|
|
Other comprehensive income:
|
|
|
|
Net change in fair value of cash flow hedges
|
|
|
|
- Foreign currency forward exchange contracts
|
|
(26.5)
|
153.3
|
Net change in fair value of cash flow hedges transferred to inventory
|
|
|
|
- Foreign currency forward exchange contracts
|
|
43.0
|
(130.1)
|
Actuarial gains/(losses) in respect of defined benefit pension schemes
|
|
6.6
|
(135.4)
|
Fair value movements on available-for-sale financial assets
|
|
3.0
|
(2.3)
|
Currency translation differences
|
|
(3.6)
|
35.9
|
Tax (charge)/credit in respect of items taken directly to equity
|
|
(5.9)
|
32.5
|
|
|
|
|
Other comprehensive income for the year, net of tax
|
|
16.6
|
(46.1)
|
|
|
|
|
Total comprehensive income for the year attributable to equity holders
of the Company
|
|
226.4
|
(459.2)
|
|
|
|
|
Consolidated balance sheet
At 27 February 2010
|
|
27 February 2010 |
28 February 2009 |
|
Notes |
£m |
£m |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Goodwill |
|
1,541.0 |
1,541.0 |
Other intangible assets |
|
92.7 |
103.6 |
Property, plant and equipment |
|
525.1 |
559.3 |
Investment in joint ventures and associates |
|
8.2 |
8.4 |
Deferred tax assets |
|
61.6 |
87.4 |
Trade and other receivables |
|
4.0 |
3.4 |
Other financial assets |
|
13.2 |
9.2 |
|
|
|
|
Total non-current assets |
|
2,245.8 |
2,312.3 |
|
|
|
|
Current assets |
|
|
|
Inventories |
|
935.4 |
930.3 |
Trade and other receivables |
|
582.1 |
593.7 |
Current tax assets |
|
50.5 |
15.1 |
Other financial assets |
|
49.5 |
53.7 |
Current asset investments |
|
50.0 |
75.0 |
Cash and cash equivalents |
|
364.0 |
209.4 |
|
|
|
|
Total current assets |
|
2,031.5 |
1,877.2 |
|
|
|
|
Total assets |
|
4,277.3 |
4,189.5 |
|
|
|
|
LIABILITIES |
|
|
|
Non-current liabilities |
|
|
|
Trade and other payables |
|
(62.5) |
(64.0) |
Provisions |
6 |
(198.3) |
(198.6) |
Deferred tax liabilities |
|
(37.8) |
(26.3) |
Retirement benefit obligations |
|
(24.9) |
(46.4) |
|
|
|
|
Total non-current liabilities |
|
(323.5) |
(335.3) |
|
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
|
(1,042.4) |
(999.2) |
Provisions |
6 |
(20.8) |
(51.6) |
Other financial liabilities |
|
(1.8) |
(1.5) |
Current tax liabilities |
|
(22.2) |
(43.5) |
|
|
|
|
Total current liabilities |
|
(1,087.2) |
(1,095.8) |
|
|
|
|
Total liabilities |
|
(1,410.7) |
(1,431.1) |
|
|
|
|
Net assets |
|
2,866.6 |
2,758.4 |
|
|
|
|
EQUITY |
|
|
|
Share capital |
|
87.7 |
87.7 |
Merger reserve |
|
(348.4) |
(348.4) |
Other reserves |
|
46.6 |
35.4 |
Retained earnings |
|
3,080.7 |
2,983.7 |
|
|
|
|
Total equity |
|
2,866.6 |
2,758.4 |
|
|
|
|
Consolidated statement of changes in equity
For the 52 weeks ended 27 February 2010
|
|
|
Attributable to equity holders of the Company |
||||
|
|
|
Share |
Merger |
Other |
Retained |
|
|
|
|
capital |
reserve |
reserves |
earnings |
Total |
|
|
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
At 1 March 2009 |
|
|
87.7 |
(348.4) |
35.4 |
2,983.7 |
2,758.4 |
|
|
|
|
|
|
|
|
Profit for the year |
|
|
- |
- |
- |
209.8 |
209.8 |
Other comprehensive income |
- |
- |
8.3 |
8.3 |
16.6 |
||
Total comprehensive income for the year ended 27 February 2010 |
|
- |
- |
8.3 |
218.1 |
226.4 |
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
Movement in share-based compensation reserve |
|
- |
- |
- |
20.4 |
20.4 |
|
Net movement in own shares |
|
|
- |
- |
2.9 |
(12.0) |
(9.1) |
Equity dividends paid during the year |
|
|
- |
- |
- |
(126.3) |
(126.3) |
Other distributions |
|
|
- |
- |
- |
(3.2) |
(3.2) |
Total transactions with owners |
|
|
- |
- |
2.9 |
(121.1) |
(118.2) |
|
|
|
|
|
|
|
|
Balance at 27 February 2010 |
|
|
87.7 |
(348.4) |
46.6 |
3,080.7 |
2,866.6 |
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of the Company |
||||
|
|
|
Share |
Merger |
Other |
Retained |
|
|
|
|
capital |
reserve |
reserves |
earnings |
Total |
|
|
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
At 2 March 2008 |
|
|
87.7 |
(348.4) |
3.9 |
3,602.0 |
3,345.2 |
|
|
|
|
|
|
|
|
Loss for the year |
|
|
- |
- |
- |
(413.1) |
(413.1) |
Other comprehensive income |
- |
- |
52.6 |
(98.7) |
(46.1) |
||
Total comprehensive income for the year ended 28 February 2009 |
|
- |
- |
52.6 |
(511.8) |
(459.2) |
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
Movement in share-based compensation reserve |
|
- |
- |
- |
21.3 |
21.3 |
|
Net movement in own shares |
|
|
- |
- |
(21.1) |
(0.4) |
(21.5) |
Equity dividends paid during the year |
|
|
- |
- |
- |
(127.2) |
(127.2) |
Other distributions |
|
|
- |
- |
- |
(0.2) |
(0.2) |
Total transactions with owners |
|
|
- |
- |
(21.1) |
(106.5) |
(127.6) |
|
|
|
|
|
|
|
|
Balance at 28 February 2009 |
|
|
87.7 |
(348.4) |
35.4 |
2,983.7 |
2,758.4 |
Consolidated statement of cash flows
For the 52 weeks ended 27 February 2010
|
|
52 weeks ended 27 February 2010 |
52 weeks ended 28 February 2009 |
|
Notes |
£m |
£m |
Cash flows from operating activities |
|
|
|
Cash generated from operations |
8 |
461.0 |
468.4 |
Tax paid |
|
(107.3) |
(74.7) |
|
|
|
|
Net cash inflow from operating activities |
|
353.7 |
393.7 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property, plant and equipment |
|
(73.7) |
(110.9) |
Proceeds from the disposal of property, plant and equipment |
|
1.9 |
2.6 |
Purchase of intangible assets |
|
(17.5) |
(44.7) |
Loan to joint venture |
|
(5.1) |
(2.0) |
Purchase of investments |
|
(51.6) |
(75.2) |
Disposal of investment |
|
75.0 |
- |
Interest received |
|
7.2 |
16.6 |
|
|
|
|
Net cash used in investing activities |
|
(63.8) |
(213.6) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Purchase of shares for Employee Share Trust |
|
(9.4) |
(21.6) |
Proceeds from sale of own shares |
|
0.3 |
0.1 |
Dividends paid |
|
(126.3) |
(127.2) |
|
|
|
|
Net cash used in financing activities |
|
(135.4) |
(148.7) |
|
|
|
|
Net increase in cash and cash equivalents |
|
154.5 |
31.4 |
|
|
|
|
Movement in cash and cash equivalents |
|
|
|
Cash and cash equivalents at the beginning of the year |
|
209.4 |
174.0 |
Effect of foreign exchange rate changes |
|
0.1 |
4.0 |
Net increase in cash and cash equivalents |
|
154.5 |
31.4 |
|
|
|
|
Cash and cash equivalents at the end of the year |
|
364.0 |
209.4 |
|
|
|
|
Analysis of net cash/(debt)
At 27 February 2010
|
|
27 February 2010 |
28 February 2009 |
Non-GAAP measures |
|
£m |
£m |
|
|
|
|
Financing net cash: |
|
|
|
Cash and cash equivalents |
|
364.0 |
209.4 |
Current asset investments |
|
50.0 |
75.0 |
|
|
|
|
Total financing net cash |
|
414.0 |
284.4 |
|
|
|
|
|
|
|
|
Operating net debt: |
|
|
|
Off balance sheet operating leases |
|
(3,148.1) |
(3,304.3) |
|
|
|
|
Total operating net debt |
|
(3,148.1) |
(3,304.3) |
|
|
|
|
Total net debt |
|
(2,734.1) |
(3,019.9) |
|
|
|
|
|
|
|
|
Adjusted for: |
|
|
|
Off balance sheet operating leases |
|
3,148.1 |
3,304.3 |
Current asset investments |
|
(50.0) |
(75.0) |
|
|
|
|
Total cash and cash equivalents reflected in balance sheet |
|
364.0 |
209.4 |
|
|
|
|
The Group uses the term total net debt which highlights the Group's aggregate net indebtedness to banks and other financial institutions together with debt-like liabilities, notably operating leases. The capitalised value of these leases is £3,148.1m (2009: £3,304.3m), based upon discounting the current rentals at the estimated current long-term cost of borrowing of 4.1% (2009: 4.1%).
The current asset investment comprises a term cash deposit invested for a period of six months (2009: nine months) which matures after the balance sheet date on 10 May 2010 (2009: 15 April 2009).
Notes
For the 52 weeks ended 27 February 2010
1. BASIS OF PREPARATION |
|
The Group consolidated financial statements are presented in sterling, rounded to the nearest hundred thousand. They are prepared under the historic cost basis modified for the revaluation of certain financial instruments. The principal accounting policies applied in the preparation of these consolidated financial statements are consistent with those described in the Annual Report and Financial Statements 2009. These policies have been consistently applied to all the periods presented. |
|
2. NON-GAAP FINANCIAL INFORMATION |
|
Exceptional items |
|
Items which are both material and non-recurring are presented as exceptional items within their relevant income statement line. The separate reporting of exceptional items helps provide a better indication of underlying performance of the Group. Examples of items which may be recorded as exceptional items are impairment charges, restructuring costs and the profits/losses on the disposal of businesses.
|
Benchmark profit before tax ('PBT') |
|
The Group uses the term benchmark PBT as a measure which is not formally recognised under IFRS. Benchmark PBT is defined as profit before amortisation of acquisition intangibles, store impairment and onerous lease charges or releases, exceptional items, costs related to demerger incentive schemes, financing fair value remeasurements, financing impact on retirement benefit obligations, the discount unwind on non-benchmark items and taxation. This measure is considered useful in that it provides investors with an alternative means to evaluate the underlying performance of the Group's operations.
|
Total net debt |
|
The Group uses the term total net debt which is considered useful in that it provides the Group's aggregate net indebtedness to banks and other financial institutions together with debt-like liabilities, notably operating leases. |
Notes
For the 52 weeks ended 27 February 2010
|
52 weeks ended 27 February 2010 |
52 weeks ended 28 February 2009 |
3. NET FINANCING INCOME/(EXPENSE) |
£m |
£m |
Finance income: |
|
|
|
|
|
Bank deposits and other interest |
4.4 |
18.6 |
Expected return on retirement benefit assets |
34.6 |
45.1 |
Financing fair value remeasurements - net exchange gains |
7.1 |
- |
|
|
|
Total finance income |
46.1 |
63.7 |
|
|
|
Finance expense: |
|
|
|
|
|
Unwinding of discounts (a) |
(9.4) |
(4.3) |
Financing fair value remeasurements - net exchange losses |
(4.4) |
(28.9) |
Interest expense on retirement benefit liabilities |
(35.3) |
(33.9) |
|
|
|
Total finance expense |
(49.1) |
(67.1) |
Less: finance expense charged to Financial Services cost of sales |
3.5 |
13.6 |
|
|
|
Total net finance expense |
(45.6) |
(53.5) |
Net financing income |
0.5 |
10.2 |
(a) Included within unwinding of discounts is a £6.7m charge (2009: £1.8m) relating to the discount unwind on exceptional onerous lease provisions.
|
|
|
52 weeks ended 27 February 2010 |
52 weeks ended 28 February 2009 |
4. DIVIDENDS |
|
|
£m |
£m |
|
|
|
|
|
Amounts recognised as distributions to equity holders |
|
|
|
|
Final dividend of 10.0p per share (2009: 10.0p) for the prior year |
|
|
(85.7) |
(86.8) |
Interim dividend of 4.7p per share (2009: 4.7p) for the current year |
|
|
(40.6) |
(40.4) |
|
|
|
|
|
Ordinary dividends on equity shares |
|
|
(126.3) |
(127.2) |
|
|
|
|
|
A final dividend in respect of the year ended 27 February 2010 of 10.0p per share, amounting to a total final dividend of £86.6m, has been proposed by the Board of Directors, and is subject to approval by the shareholders at the Annual General Meeting. This would make a total dividend for the year of 14.7p per share, amounting to £127.2m. The proposed dividend has not been included as a liability at 27 February 2010 in accordance with IAS 10 'Events after the Balance Sheet Date'. It will be paid on 21 July 2010 to shareholders who are on the register of members at close of business on 21 May 2010. The Home Retail Group Employee Share Trust ('EST') has waived its entitlement to dividends in the amount of £2.7m (2009: £1.8m). |
||||
|
Notes
For the 52 weeks ended 27 February 2010
5. BASIC AND DILUTED EARNINGS PER SHARE ('EPS') |
|
|
|
|
|
|
|
|
|
Basic earnings per share is calculated by dividing the profit attributable to the equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares held in Home Retail Group's share trusts, net of vested but unexercised options and share awards. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potential dilutive ordinary shares.
|
|
|
52 weeks ended 27 February 2010 |
|
52 weeks ended 28 February 2009 |
Earnings |
|
£m |
|
£m |
|
|
|
|
|
Profit/(loss) after tax for the financial year |
|
209.8 |
|
(413.1) |
Adjusted for: |
|
|
|
|
Exceptional items |
|
- |
|
694.0 |
Demerger incentive schemes |
|
7.7 |
|
8.4 |
Financing fair value remeasurements |
|
(2.7) |
|
28.9 |
Financing impact on retirement benefit obligations |
|
0.7 |
|
(11.2) |
Discount unwind on non-benchmark items |
|
6.7 |
|
1.8 |
Onerous lease provision releases |
|
(12.5) |
|
- |
Attributable taxation |
|
(0.6) |
|
(61.1) |
Non-benchmark tax credit in respect of prior years |
|
(7.6) |
|
(23.5) |
|
|
|
|
|
Benchmark profit after tax for the financial year |
|
201.5 |
|
224.2 |
|
|
|
|
|
Weighted average number of shares |
|
millions |
|
millions |
|
|
|
|
|
Number of ordinary shares for the purpose of basic EPS |
|
862.9 |
|
866.6 |
Dilutive effect of share incentive awards |
|
9.3 |
|
10.4 |
|
|
|
|
|
Number of ordinary shares for the purpose of diluted EPS |
|
872.2 |
|
877.0 |
|
|
|
|
|
EPS |
|
pence |
|
pence |
|
|
|
|
|
Basic EPS |
|
24.3 |
|
(47.7) |
Diluted EPS (a) |
|
24.1 |
|
(47.7) |
|
|
|
|
|
Basic benchmark EPS |
|
23.4 |
|
25.9 |
Diluted benchmark EPS |
|
23.1 |
|
25.6 |
(a) In accordance with IAS 33, as the Group made a loss after tax for the 52 weeks ended 28 February 2009, the effect of share incentive awards is anti-dilutive and as such diluted EPS equals basic EPS.
Notes
For the 52 weeks ended 27 February 2010
|
|
|
Onerous leases |
Insurance provisions |
Restructuring provisions |
Other |
Total |
6. PROVISIONS |
|
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
At 1 March 2009 |
|
|
(173.4) |
(33.1) |
(33.6) |
(10.1) |
(250.2) |
Charged to the income statement |
|
|
- |
(2.8) |
- |
- |
(2.8) |
Released to the income statement |
|
|
12.5 |
- |
0.8 |
0.6 |
13.9 |
Transfer |
|
|
(2.3) |
- |
(0.8) |
1.1 |
(2.0) |
Utilised during the year |
|
|
8.6 |
3.2 |
19.0 |
0.9 |
31.7 |
Discount unwind |
|
|
(9.3) |
- |
(0.2) |
(0.2) |
(9.7) |
|
|
|
|
|
|
|
|
At 27 February 2010 |
|
|
(163.9) |
(32.7) |
(14.8) |
(7.7) |
(219.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
2009 |
Analysed as: |
|
|
|
|
|
£m |
£m |
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
(20.8) |
(51.6) |
Non-current |
|
|
|
|
|
(198.3) |
(198.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(219.1) |
(250.2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The onerous lease provision covers potential liabilities for onerous lease contracts for stores that have either closed, or where projected future trading revenue is insufficient to cover the lower of exit cost or value-in-use. Where the value-in-use calculation is lower, the provision is based on the present value of expected future cash flows relating to rents, rates and other property costs to the end of the lease terms net of expected sublet income. The majority of this provision is expected to be utilised over the period to 2017.
Provision is made at the year-end for the estimated costs of claims incurred by the Group's captive insurance company but not settled at the balance sheet date, including the costs of claims that have arisen but have not yet been reported to the Group. The estimated cost of claims includes expenses to be incurred in settling claims. The majority of this provision is expected to be utilised over the period to 2014.
A number of organisational changes were undertaken to improve the operational efficiency of the Group and drive further cost productivity. Actions taken included a streamlining of head office functions across all parts of the Group, restructuring of store-based staff and a consolidation of home delivery warehouses. The majority of this remaining provision is expected to be utilised within one year.
Other provisions include legal claims and other sundry provisions. The majority of this provision is expected to be utilised within one year.
Notes
For the 52 weeks ended 27 February 2010
7. NOTES TO THE CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
||||||||||
|
|
|
|
|
|
|
|
|||
Merger reserve |
||||||||||
The merger reserve arose on the demerger of the Group from GUS plc during 2006. |
||||||||||
|
|
|
|
|
||||||
Other reserves |
|
|
|
|
||||||
Other reserves principally consist of shares held in trust, the hedging reserve and the translation reserve. |
||||||||||
|
|
|
|
|
||||||
Net movement in own shares of £2.9m (2009: (£21.1m)) represents the purchase, and subsequent utilisation or sale, of shares for the purpose of satisfying obligations arising from Home Retail Group plc share-based compensation schemes. Shares in Home Retail Group plc are held in the following trusts which have been established since demerger:
Home Retail Group Employee Share Trust ('EST')
The EST provides for the issue of shares to Group employees under share option and share grant schemes (with the exception of the Share Incentive Plan). At 27 February 2010, the EST held 13,899,537 shares with a market value of £35.4m. The shares in the EST are held within equity of the Group at a cost of £20.0m. During the year 3,112,268 shares were acquired for a cost of £9.4m. Dividends on these shares are waived.
Home Retail Group Share Incentive Scheme Trust
The Home Retail Group Share Incentive Scheme Trust provides for the issue of shares to Group employees under the Share Incentive Plan. At 27 February 2010, the Trust held 1,007,291 shares with a market value of £2.6m. These shares are held within equity of the Group at a cost of £4.2m. No additional shares were purchased during the year. |
||||||||||
8. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
|
52 weeks ended 27 February 2010 |
|
52 weeks ended 28 February 2009 |
Cash generated from operations |
£m |
|
£m |
Profit/(loss) before tax |
293.0 |
|
(394.2) |
Adjustments for: |
|
|
|
Share of post-tax losses of joint ventures and associates |
2.0 |
|
2.4 |
Net financing income |
(0.5) |
|
(10.2) |
Operating profit/(loss) |
294.5 |
|
(402.0) |
|
|
|
|
Loss/(profit) on sale of property, plant and equipment |
2.5 |
|
(0.2) |
Depreciation and amortisation |
130.1 |
|
159.4 |
Impairment losses |
- |
|
533.9 |
Finance expense charged to Financial Services cost of sales |
3.5 |
|
13.6 |
|
|
|
|
(Increase)/decrease in inventories |
(5.1) |
|
74.5 |
Decrease in receivables |
11.5 |
|
12.6 |
Increase/(decrease) in payables |
63.2 |
|
(97.3) |
Movement in working capital |
69.6 |
|
(10.2) |
|
|
|
|
(Decrease)/increase in provisions |
(40.8) |
|
146.9 |
Movement in retirement benefits |
(15.6) |
|
5.9 |
Share-based payment expense (net of dividend equivalent payments) |
17.2 |
|
21.1 |
Cash generated from operations |
461.0 |
|
468.4 |
|
|
|
Notes
For the 52 weeks ended 27 February 2010
9. RELATED PARTIES
The Group's related parties are its joint ventures and associates, key management personnel and the Home Retail Group defined benefit pension plans.
The Group lent £5.1m (2009: £2.0m) to and invested £0.5m (2009: £nil) in a joint venture, Home Retail Group Personal Finance Limited. The total loan of £15.2m (2009: £10.1m) was outstanding as at 27 February 2010.
During the year, there were no material transactions or balances between the Group and its key management personnel or members of their close families.
During the year, the Group has paid contributions totalling £31.3m (2009: £13.9m) to the Home Retail Group defined benefit pension plans including £17.3m as part of the deficit recovery plan and increased employer contribution rate agreed with the scheme trustees following the completion of the 31 March 2009 actuarial valuation.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the Group financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the Group financial statements in accordance with applicable law and International Financial Reporting Standards ('IFRSs') as adopted by the European Union. The Group financial statements are required by law to give a true and fair view of the state of affairs and of the profit or loss of the Group for that year.
The preliminary results for the 52 weeks ended 27 February 2010 have been extracted from the annual report and the Group financial statements.
In preparing the Group financial statements, the directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgements and estimates that are reasonable and prudent;
· state that the Group financial statements comply with IFRSs as adopted by the European Union, subject to any material departures disclosed and explained in the financial statements; and
· prepare the Group financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business, in which case there should be supporting assumptions or qualifications as necessary.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006 and Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
By order of the Board
Terry Duddy Richard Ashton
Chief Executive Finance Director
28 April 2010 28 April 2010