Interim Results
Sainsbury(J) PLC
21 November 2001
J Sainsbury plc - Interim results 2001 for 28 weeks ended 13 October 2001
Higher sales and underlying profits from continuing businesses
- recovery on track.
GROUP RESULTS
* Continuing businesses perform strongly:
- sales up 8.4 per cent to £9.6bn;
- underlying** operating profit before e-commerce up 10.2 per cent
to £366m.
* Underlying profit before tax and continuing e-commerce up 7.0 per
cent to £338m.
* Underlying profit before tax up 3.2 per cent to £309m.
* Interim dividend maintained at 4.02 pence per share.
UK SUPERMARKETS
* Sales up 7.5 per cent to £7.8bn.
* Like-for-like sales growth (ex petrol) up 6.0 per cent - 3
consecutive quarters of strong growth.
* Customer visits up 6.2 per cent.
* Underlying operating profit before e-commerce up 10.0 per cent to £282m
* Business Transformation - programme on track:
- delivery of new systems and modernisation of supply chain
going well;
- store reinvigoration accelerated - improving sales uplifts;
- on track to deliver £150m cost savings target for year.
SHAW'S
* Sales up 8.4 per cent to $2,355m.
* Like-for-like sales growth of 4.5 per cent.
* Operating profit up 22.1 per cent to $101m.
** Underlying profits are before amortisation of goodwill, exceptional
costs and non-operating items.
Sir Peter Davis, Group Chief Executive, said:
'Sainsbury's Supermarkets in the UK and Shaw's in the US have both performed
strongly. Sainsbury's sales growth is particularly encouraging. We have
now delivered three consecutive quarters of strong like-for-like sales; this
is the best sustained growth the company has delivered for over 10 years. We
have also started to increase profits whilst investing substantially both in
the Sainsbury brand and in transforming the business.
To achieve these results we have improved the quality of our customer offer,
extending choice through the creation of new ranges, improving our standards
of service in-store and working to ensure that our offer is priced
competitively in the market.
At the same time we are investing in the long-term growth of the business
through our business transformation programme. We have completed 54
extensions and refurbishments in this first half year and sales uplifts are
very encouraging. For the 13 stores refurbished in Q1 we have already
achieved an average sales uplift of 10 per cent and we have raised our
projections of the ultimate sales uplifts to 12 per cent. This is in line
with the uplifts achieved on stores reinvigorated last year.
We have made significant progress over the last year in updating our systems.
The programme is running on time and on budget; it has already had a
positive impact on the business.
We have built a new customer data warehouse to enable us to better use the
very valuable customer data from the Reward card. We have also re-launched
our Sainsbury's to You website on a new IT platform; this has improved speed,
performance and the visual attributes of the site. We have introduced much
improved IT systems in our new business centre which deliver a quantum leap in
performance and facilitate new ways of working.
We are making good progress with the renewal of our supply chain. During
this first phase we have doubled the size of our Haydock depot, making it one
of the largest in the UK, acquired and opened Emerald Park, serving 63 stores
in the South West, whilst closing Middleton and Yate. In phase II we have
four major facilities under construction at Stoke-On-Trent, Hams Hall in
Birmingham, Waltham Point and Hoddesdon in Hertfordshire.
We have moved successfully our entire Business Centre into one modern facility
from nine dispersed and rather dated offices. We have also secured planning
permission to develop our Stamford Street site and demolition will commence in
January 2002.
We have also opened four of the scheduled six Boots 'implants' within
selected Sainsbury's out-of-town stores and will open the balance by the end of
this month, all ahead of plan.
We have appointed Sara Weller and Stuart Mitchell as joint assistant managing
directors of Sainsbury's Supermarkets. Sara is responsible for Strategy and
Marketing and also for Sainsbury's Bank and Sainsbury's to You. This will
ensure that all parts of the UK business work together to achieve the
objectives of our brand. Stuart is responsible for Trading, Retail and
Distribution - all the operational facets of our business in an end-to-end
process. This focus should ensure that we work faster, simpler and together to
generate maximum customer benefit and operational efficiencies. In the first
half we delivered cost savings of £60m and we are on track to achieve our
target of £150m cost savings.
Shaw's has delivered an excellent first half profit performance with good
sales growth of 8.4 per cent. We have completed the integration of 18 stores
we bought from Grand Union in March and will achieve distribution efficiencies
this year through the closure of our East Bridgewater site. We are well
placed to continue to grow Shaw's as a strong regional player.
Our continuing businesses have performed strongly in the first half. In the
first 5 weeks of the second half I am happy to say that sales have remained
encouraging. I am confident that we are making excellent progress in
delivering our 3 year business transformation programme.'
Group Financial Summary
The results for the first half year reflect substantial progress across the
Group. This progress is evidenced by underlying Group profit before tax and
continuing e-commerce increasing by 7.0 per cent year on year to £338m (2000 :
£316m), a significant improvement on the stabilisation of Group profits
achieved last year.
Group sales (including VAT) from continuing operations increased by 8.4 per
cent to £9.6bn.
Underlying operating profit from continuing operations before e-commerce was
£366m, an increase of £34m or 10.2 per cent over the previous year.
Operating Profit 2001 Change
£m %
Sainsbury's Supermarkets 282 10.0
Shaw's 70 27.8
Sainsbury's Bank 10 12.9
JS Developments 8 (38.9)
Profit share (4) -
Underlying operating profit before e-commerce 366 10.2
Sainsbury's to You (29) (75.6)
Amortisation of goodwill (8) (14.9)
Operating profit excluding exceptionals
and discontinued operations 329 6.6
The operating loss from discontinued businesses was £2m resulting from the
final 6 weeks trading of our Egyptian business sold on 15th May 2001.
Underlying Group profit before tax and continuing e-commerce was £338 million
(2000 : £316m) an increase of 7.0 per cent After continuing e-commerce of
£29m (2000: £16m), underlying Group profit before tax was £309m (2000: £300m),
an increase of 3.2 per cent over the previous year.
Exceptional operating costs were £21m (2000: nil). These include severance
and closure costs of £8m relating to the business transformation programme in
Sainsbury's Supermarkets, closure costs of £5m relating to the termination of
the Taste joint venture and depot closure costs in Shaw's amounting to £8m.
As previously communicated, we expect the exceptional operating costs for the
full year to be between £35m and £50m.
The Group tax charge was £99m (2000 restated for FRS 19 : £102m). We have
adopted FRS19 on deferred tax; this will raise our underlying tax rate in 2001
/02 by approximate 2 per cent to 34 per cent. The underlying effective tax
rate in the first half was 34 per cent (2000: 32 per cent).
Underlying earnings per share was 10.7 pence (2000 restated for FRS19: 10.4
pence), an increase of 2.9 per cent on the previous year.
The Board has declared an interim dividend of 4.02 pence per share which
remains unchanged from last year. The interim dividend will be paid on 11th
January 2002 to shareholders on the Register of Members at the close of
business on Friday
30th November 2001.
Group capital expenditure in the half year was £561m (2000: £476m). UK capital
expenditure was £506m including £95m on new stores, £265m on extensions and
refurbishments and £94m on the construction of new distribution depots. Shaw's
capital expenditure was £55m (2000: £57m). We forecast Group capital
expenditure to be £1.1bn for the year.
Net debt at the half year increased by £284m to £1.1bn (31 March 2001 : £859m)
with gearing increased to 23 per cent from 18 per cent at 31 March 2001 (22
per cent and 17 per cent respectively before restatement for FRS19).
Sainsbury's Supermarkets
Total sales grew by 7.5 per cent to £7,814m (2000: £7,267m). Like-for-like
sales growth (excluding petrol) was 6.0 per cent, the third consecutive
quarter of strong like-for-like sales growth. The business has been competing
more effectively by offering a compelling combination of extraordinary quality
at ordinary prices, supported by the acceleration of our store reinvigoration
programme.
Sainsbury's Supermarkets sales, including VAT, excluding Petrol
00/01 00/01 01/02 01/02 01/02
% Growth Q3 Q4 Q1 Q2 H1
Volume (0.7) 4.1 3.9 4.5 4.2
Inflation 1.1 0.7 2.1 1.5 1.8
Like-for-like sales growth 0.4 4.8 6.0 6.0 6.0
Net new space 2.0 2.1 2.6 1.7 2.1
Total growth 2.4 6.9 8.6 7.7 8.1
Cost savings of £60m were delivered during the first half, of which £30m
related to buying efficiencies. We are on track to deliver £150m of cost
savings for the year. In the first half, there has been a significant
investment in the brand to deliver higher sales growth. Additional costs have
been incurred in implementing the transformation programmes, such as systems,
supply chain and store reinvigoration, which is necessary to deliver operating
efficiencies in the future.
Fifty-four extensions and refurbishments were completed in the first half,
compared with 50 for the whole of last year. The sales uplifts from
reinvigorated stores continue to exceed our expectations.
Underlying operating profit before e-commerce for the first half year was
£282m (2000: £256m), an increase of 10.0 per cent over the previous year. The
operating margin increased from 3.5 per cent to 3.6 per cent.
E-commerce investment in Sainsbury's to You in the first half was £29m (2000:
£16m). This excludes pre-closure operating losses of £4m in the Taste joint
venture which was terminated on 1st September 2001. The operating losses of
Sainsbury's to You increased during the first half due to increased geographic
coverage, with 24 more in-store picking centres than at the same time last
year, related marketing costs and low operating efficiencies in the 2
dedicated picking centres while operating models and sales volumes are
established.
Shaw's (US Operations)
Sales grew by 8.4 per cent to $2,355m (2000: $2,173m). Like-for-like growth
was 4.5 per cent. Good sales uplifts were generated from increased ranging
and development initiatives.
Shaw's sales
00/01 00/01 01/02 01/02 01/02
% Growth Q3 Q4 Q1 Q2 H1
Like-for-like growth 1.3 2.5 3.8 5.0 4.5
New space (0.5) 0.7 3.4 4.4 3.9
Total growth 0.8 3.2 7.2 9.4 8.4
The new formats are performing well and the development programme has been
accelerated. Ten refurbishments and extensions (excluding Grand Union) were
completed in the first half, an increase from 4 in the previous year.
Eighteen Grand Union stores purchased on the 4th March 2001 have been rebadged
as Shaw's and the integration is proceeding smoothly.
A local union agreement was successfully renegotiated at the end of July this
year together with the announced closure of the East Bridgewater depot. This
facility was outdated and poorly located for Shaw's business today and the
closure will generate significant distribution efficiencies.
Operating profit for the year increased by 22.1 per cent to $101m (2000: $83m)
and the operating margin increased from 3.8 per cent to 4.3 per cent.
Sainsbury's Bank
Sainsbury's Bank performed well during the first half year with strong growth
in operating profit. Turnover increased by 10.7 per cent to £83m (2000: £75m)
and operating profit was £10m (2000: £9m) an increase of 12.9 per cent. The
first half included a VAT credit of £2.8m compared with £3.5m in the first
half of last year. Adjusting for the impact of the VAT credits, the
underlying profit increase was an impressive 36 per cent.
The application of retail style in-store product merchandising and promotions
has resulted in commission income being up 33 per cent, customer deposits were
up 22 per cent and lending was up 15 per cent. Use of our in-store channel
has allowed us to keep acquisition costs low.
Property development
JS Developments operating profit in the first half was £8m (2000: £13m). Only
1 major project was completed during the first half.
We are currently evaluating 45 property schemes on existing sites which will
release value and at the same time increase customer footfall in our stores.
This will lead to a more effective utilisation of our extensive property
assets.
Group profit and loss account
28 weeks 28 weeks
to to
28 weeks 13 14 28 weeks
to October October to
13 October 14
2001 2001 2000 October
2000
unaud- unaud- unaud- unaud-
ited ited ited* ited*
Note Excluding Excluding
exceptionals exceptionals
& &
discontinued discontinued
operations operations
£m £m £m £m
Turnover 2 9,601 9,593 8,850 9,754
including VAT
and sales
taxes
VAT and sales (556) (556) (509) (637)
taxes
Continuing 9,037 9,037 8,341 8,341
operations
Discontinued 8 776
operations
Turnover 9,045 9,117
excluding VAT
and sales
taxes
Cost of sales (8,706) (8,696) (8,024) (8,777)
and
administrative
expenses
Amortisation (8) (8) (7) (8)
of goodwill
Exceptional 3 (21) -
operating
costs
Profit sharing (4) (4) (1) (1)
(8,739) (8,708) (8,032) (8,786)
Continuing 308 309
operations
Discontinued (2) 22
operations
Operating 306 329 309 331
profit
Share of (4) -
operating loss
in joint
ventures
(Loss) / 3 (3) 46
Profit on sale
of properties
Profit on ordinary 299 377
activities before
interest
Net interest (22) (39)
payable
Underlying 309 300
profit before
tax**
Amortisation (8) (8)
of goodwill
Exceptional (21) -
operating
costs
(Loss) / (3) 46
Profit on sale
of properties
Profit on 277 338
ordinary
activities
before tax
Tax on profit 4 (99) (102)
on ordinary
activities
Profit on 178 236
ordinary
activities
after tax
Equity (3) -
minority
interest
Profit for the 175 236
financial
period
Dividends (78) (77)
Retained 97 159
profit
Earnings per 5 9.2p 12.4p
share
Underlying 5 10.7p 10.4p
earnings per
share**
Diluted 5 9.1p 12.4p
earnings per
share
Underlying 5 10.6p 10.4p
diluted
earnings per
share**
Dividend per 4.02p 4.02p
share
* Restated for change in accounting policy for deferred tax (see note 1)
** Before amortisation of goodwill, exceptional operating costs and
non-operating items
Group statement of total recognised gains and losses
28 weeks to 28 weeks to
13 October 14 October
2001 2000
(unaudited) (unaudited)*
£m £m
Profit for the financial period 175 236
Currency translation differences on foreign currency (1) 15
net investments
Total recognised gains relating to the financial 174 251
period
Change in accounting policy for deferred tax (160)
Total recognised gains since last annual report 14
There is no material difference between the above profit for the period and
the historical cost equivalent.
* Restated for change in accounting policy for deferred tax (see note 1)
Reconciliation of movements in equity shareholders' funds
28 weeks to 28 weeks to
13 October 14 October
2001 2000
(unaudited) (unaudited)*
£m £m
Profit for the financial period 175 236
Equity dividends (78) (77)
97 159
Currency translation differences (1) 15
New share capital subscribed for less expenses of 8 5
capital issues
Amounts deducted in respect of shares issued to the (1) -
QUEST
Net movement in equity shareholders' funds 103 179
Opening equity shareholders' funds as restated* 4,751 4,568
Closing equity shareholders' funds 4,854 4,747
* Restated for change in accounting policy for deferred tax (see note 1).
Originally shareholders' funds were £4,911m at 31 March 2001 before deducting
prior year adjustment of £160m ( £4,742m before deducting prior year
adjustment of £174m - 1 April 2000)
Group balance sheet
13 October 14 October 31 March
2001 2000 2001
Note (unaudited) (unaudited)* (audited)*
£m £m £m
Fixed assets
Intangible assets 266 331 278
Tangible assets 6,546 6,583 6,215
Investments 168 139 164
6,980 7,053 6,657
Current assets
Stocks 880 1,092 763
Debtors 365 327 546
Sainsbury's Bank 6 2,138 1,759 1,914
Investments 14 17 12
Cash at bank and in hand 839 498 475
4,236 3,693 3,710
Creditors: due within one year
Sainsbury's Bank 6 (2,014) (1,638) (1,796)
Other (2,843) (2,914) (2,529)
(4,857) (4,552) (4,325)
Net current liabilities (621) (859) (615)
Total assets less current 6,359 6,194 6,042
liabilities
Creditors: due after one year (1,226) (1,182) (1,000)
Provisions for liabilities and (223) (216) (238)
charges
Total net assets 4,910 4,796 4,804
Capital and reserves
Called up share capital 484 482 483
Share premium account 1,408 1,383 1,401
Revaluation reserve 39 39 39
Profit and loss account 2,923 2,843 2,828
Group shareholders' funds 4,854 4,747 4,751
Equity minority interest 56 49 53
Total capital employed 4,910 4,796 4,804
* Restated for change in accounting policy for deferred tax (see note 1)
Group cash flow statement
28 weeks to 28 weeks to
13 October 14 October
2001 2000
Note (unaudited) (unaudited)
£m £m
Net cash inflow from operating activities 7 290 378
Returns on investments and servicing of finance
Interest received 41 22
Interest paid (46) (63)
Interest element of finance lease rental payments (11) (10)
Net cash outflow from returns on investments and (16) (51)
servicing of finance
Taxation (69) (59)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (490) (475)
Receipts from sale of tangible fixed assets 184 333
Purchase of own shares - (20)
Payments to acquire intangible assets (3) (2)
Net cash outflow from capital expenditure and (309) (164)
financial investment
Acquisitions and disposals
Proceeds from disposal of operations 14 -
Investment in other fixed asset investments (7) (21)
Net cash inflow/(outflow) from acquisitions and 7 (21)
disposals
Equity dividends paid (197) (197)
Net cash outflow before management of liquid (294) (114)
resources and financing
Financing
Issue of ordinary share capital 7 5
Increase/(decrease) in short-term borrowings 472 (180)
Increase in long-term borrowings 230 136
Increase/(decrease) in finance leases 1 -
Capital element of finance lease rental payments (1) (3)
Net cash inflow/(outflow) from financing 709 (42)
Increase/(decrease) in cash in the period 415 (156)
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash in the period 415 (156)
Cash (inflow)/outflow from increase in debt and lease (701) 47
financing
New finance leases (1) (28)
Currency translation difference 3 (57)
Movement in net debt in the period 8 (284) (194)
Net debt at the beginning of the period 8 (859) (1,264)
Net debt at the end of the period 8(1,143) (1,458)
Notes to the Results
1. Accounting policies
The financial information has been prepared using the accounting policies set
out in the Annual Report and Financial Statements 2001 with the exception of
the policy on deferred tax. Financial Reporting Standard (FRS) 19 'Deferred
Tax' has been adopted with effect from 1 April 2001. FRS 19 requires that
deferred tax be recognised in respect of all timing differences that have
originated, but not reversed, by the balance sheet date. Prior to 1 April
2001 the Group's accounting policy was to provide for the deferred tax which
was likely to be payable or recoverable.
The Group agreed to sell its Homebase business in December 2000 and the
Egyptian business in May 2001. These businesses have been treated as
discontinued operations in the profit and loss account, but the comparative
figures include the assets & liabilities and cash flows of these businesses,
as appropriate.
2. Group turnover and operating profit
Set out below are the Group turnover and operating profit after e-commerce
costs, but before amortisation of goodwill and exceptional costs.
28 weeks to 28 weeks to Change %
13 October 14 October
2001 2000
(unaudited) (unaudited)
£m £m
Turnover Inc VAT
Food retailing and financial services - UK 7,897 7,342 7.6%
Property development - UK 53 64 (17.2 %)
Food retailing - US 1,643 1,444 13.8%
Continuing operations 9,593 8,850 8.4%
Discontinued operations 8 904
Total 9,601 9,754 (1.6%)
Turnover Ex VAT
Food retailing and financial services - UK 7,354 6,846 7.4 %
Property development - UK 53 64 (17.2%)
Food retailing - US 1,630 1,431 13.9%
Continuing operations 9,037 8,341 8.3%
Discontinued operations 8 776
Total 9,045 9,117 (0.8%)
Operating profit
Food retailing and financial services - UK 263 249 5.7%
Property development - UK 8 13 (38.9%)
Food retailing - US 70 55 27.8%
Profit sharing (4) (1)
Continuing operations 337 316 6.7%
Discontinued operations (2) 23
Total 335 339 (1.2%)
2. Group turnover and operating profit (continued)
US sales and operating profit have been translated at an average exchange rate
for the period of £1 = $1.4328 (2000/01 28 weeks : £1 = $1.5100).
28 weeks to 28 weeks to Change %
13 October 14 October
2001 2000
$m $m
Shaw's sales and operating profit
Sales (including sales tax) 2,355 2,173 8.4
Operating profit 101 83 22.1
3. Exceptional items
3.1 Exceptional operating items
28 weeks to 28 weeks to
13 October 2001 14 October 2000
(unaudited) (unaudited)
£m £m
Sainsbury's Supermarkets 13 -
Shaw's Supermarkets 8 -
Exceptional operating costs 21 -
The costs in Sainsbury's Supermarkets relate to the business transformation
programme which involves significant changes across the whole business and
includes infrastructure projects such as reinvigorating the entire store
portfolio, modernising the supply chain, replatforming all IT systems and
introducing new ways of working. The costs of closure of Taste are also
included in Sainsbury's Supermarkets. The costs in Shaw's related to depot
closure costs.
3.2 Exceptional non-operating items
Profits on sales of properties were as follows:
28 weeks to 28 weeks to
13 October 2001 14 October 2000
(unaudited) (unaudited)
£m £m
Sale and leaseback of UK supermarket - 51
freeholds
Other (3) (5)
(3) 46
4. Taxation
The tax charge in the profit & loss account comprises:
28 weeks to 28 weeks to
13 October 2001 (unaudited) 14 October 2000
£m (unaudited)*
£m
Current tax 96 99
Deferred tax 6 3
Tax relief on exceptional items (3) -
99 102
Compliance with FRS 19 'deferred tax' results in an additional tax charge of
£6m in the current period, which reduces profit after tax from £184m to £178m
and earnings per share by 0.3 pence.
The prior year comparatives have been restated to comply with FRS 19 'deferred
tax'. The effect is to reduce profit after tax by £3m from £239m to £236m and
to reduce opening net assets by £160m to £4751m. Earnings per share have been
restated from 12.6p to 12.4p. Underlying earnings per share have been restated
from 10.6p to 10.4p.
5. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the period, excluding those held by the Employee Share Ownership
Trusts which are treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. These represent share options granted to employees where the exercise
price is less than the average market price of the Company's ordinary shares
during the period to 13 October 2001.
28 weeks 28 weeks
to to
13 14
October October
2001 2000
million million
Weighted average number of shares in issue 1,907.7 1,901.0
Weighted average number of dilutive share options 13.5 8.5
Total number of shares for calculating diluted earnings 1,921.2 1,909.5
per share
The alternative measure of earnings per share is provided because it reflects
the Group's underlying trading performance by excluding the effect of
amortisation of goodwill and exceptional items.
28 weeks 28 weeks
to to
13 14
October October
2001 2000
Earnings Per Earnings Per
£m share £m share
amount amount
pence pence
Basic Earnings per share 175 9.2 236 12.4
Amortisation of goodwill 8 0.4 8 0.4
Exceptional items net of tax:
Operating Profit 18 0.9 - -
Loss/(Profit) on sale of properties 3 0.2 (46) (2.4)
Underlying earnings per share before 204 10.7 198 10.4
amortisation of goodwill and exceptional items
Diluted earnings per share 175 9.1 236 12.4
Underlying diluted earnings per share before 204 10.6 198 10.4
amortisation of goodwill and exceptional items
6. Current assets and creditors of Sainsbury's Bank
13 October 14 October 31 March
2001 2000 2001
£m £m £m
Current assets
Treasury bills and other eligible bills 54 62 59
Loans and advances to banks 704 434 605
Loans and advances to customers* 838 729 781
Debt securities 480 500 422
Prepayments and accrued income 62 34 47
2,138 1,759 1,914
Creditors: due within one year
Customer accounts 1,957 1,608 1,766
Accruals and deferred income 57 30 30
2,014 1,638 1,796
*Loans and advances to customers include £436 million (14 October 2000 - £420
million; 31 March 2001 - £333 million) of loans and advances repayable in more
than one year.
In addition to the above assets, Sainsbury's Bank had fixed assets of £7
million at 13 October 2001 (14 October 2000 - £5 million; 31 March 2001 - £6
million) and other liabilities of £3m (14 October 2000 - £6m; 31 March 2001 -
nil).
7. Reconciliation of operating profit to net cash inflow from
operating activities
28 weeks to 28 weeks to
13 October 14 October
2001 2000
£m £m
Operating profit 306 331
Depreciation 182 222
Amortisation of intangible assets 9 8
Profit on sale of equipment, fixtures and vehicles - (1)
Increase in stocks (110) (101)
Decrease/(increase) in debtors 9 (6)
(Decrease)/increase in creditors and provisions (100) (65)
Increase in Sainsbury's Bank current assets (224) (41)
Increase in Sainsbury's Bank creditors 218 31
Net cash inflow from operating activities 290 378
8. Analysis of net debt
At 1 Cash Other Exchange At 13
April Flow non-cash movements October
2001 movements 2001
£m £m £m £m £m
Cash and liquid funds 487 367 - (1) 853
Overdrafts (140) 48 - - (92)
347 415 - (1) 761
Debt due within 1 (230) (472) - - (702)
year
Debt due after 1 year (796) (230) - - (1,026)
Finance leases (180) 1 (1) 4 (176)
Total (859) (286) (1) 3 (1,143)
9. Financial information
The interim results are unaudited but have been reviewed by the auditors. The
financial information presented herein does not amount to full accounts within
the meaning of Section 240 of the Companies Act 1985 (as amended). The
figures for the 52 weeks to 31 March 2001 have been extracted from the 2001
Annual Accounts which have been filed with the Registrar of Companies. The
audit report on the 2001 Annual Accounts was unqualified and did not contain a
statement under Section 237 (2) or (3) of the Companies Act 1985.
The company's results will be published in the Interim Statement which will be
posted to shareholders on 21 November 2001. Copies will also be available
from J Sainsbury plc, 33 Holborn London EC1N 2HT and at its paying agents
Citibank, N.A., 336 Strand, London WC2R 1HB and Chase Manhattan Bank, Trinity
Tower, 9 Thomas More Street, London E1 9YT.
Review report by the Auditors to the Board of
Directors of J Sainsbury Plc
Independent Review Report to J Sainsbury plc
We have been instructed by the company to review the financial information
which comprises a summarised profit and loss account, statement of total
recognised gains and losses, summarised balance sheet information, a
summarised cash flow statement, comparative figures and associated notes. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies
with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we
do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the 28 weeks
ended 13 October 2001.
PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
1 Embankment Place
London
WC2N 6RH
20 November 2001
Notes:
(a) The maintenance and integrity of the J Sainsbury plc web
site is the responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters and, accordingly, the
auditors accept no responsibility for any changes that may have occurred to
the interim report since it was initially presented on the web site.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
For enquiries
Investor Relations:
Roger Matthews / Jennifer van der Eem 020 7695 4614
Media:
Jan Shawe 020 7695 6469
Pip Wood 020 7695 6137
Webcast interview with Sir Peter Davis on highlights of J Sainsbury's H1
performance will be available from 7am 21 November 2001 (j-sainsbury.co.uk or
cantos.com).
Webcast of analyst presentation available from 4pm 21 November 2001
(j-sainsbury.co.uk)
end
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