Full Year Results - Back Section
Consolidated income statement
For the 53 weeks ended 3 March 2012
|
|
|
53 weeks ended 3 March 2012 |
|
52 weeks ended 26 February 2011 |
||
|
|
|
Before exceptional items |
Exceptional items (note 3) |
After exceptional items |
|
Total |
|
|
Notes |
£m |
£m |
£m |
|
£m |
|
|
|
|
|
|
|
|
|
Revenue |
|
5,582.8 |
- |
5,582.8 |
|
5,851.9 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(3,794.0) |
- |
(3,794.0) |
|
(3,970.7) |
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,788.8 |
- |
1,788.8 |
|
1,881.2 |
|
|
|
|
|
|
|
|
|
Net operating expenses |
|
(1,669.8) |
(20.3) |
(1,690.1) |
|
(1,623.2) |
|
|
|
|
|
|
|
|
|
Operating profit |
|
119.0 |
(20.3) |
98.7 |
|
258.0 |
|
|
|
|
|
|
|
|
|
- Finance income |
|
53.3 |
- |
53.3 |
|
57.3 |
|
- Finance expense |
|
(48.4) |
- |
(48.4) |
|
(50.2) |
|
Net financing income |
4 |
4.9 |
- |
4.9 |
|
7.1 |
|
|
|
|
|
|
|
|
|
Share of post-tax profit of joint ventures and associates |
|
0.5 |
- |
0.5 |
|
0.1 |
|
|
|
|
|
|
|
|
|
Profit before tax |
|
124.4 |
(20.3) |
104.1 |
|
265.2 |
|
|
|
|
|
|
|
|
|
Taxation |
|
(34.6) |
3.3 |
(31.3) |
|
(74.3) |
|
|
|
|
|
|
|
|
|
Profit for the year attributable to equity holders of the Company |
|
89.8 |
(17.0) |
72.8 |
|
190.9 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
pence |
|
pence |
|
- Basic |
6 |
|
|
9.1 |
|
23.1 |
|
- Diluted |
6 |
|
|
9.1 |
|
23.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
pence |
|
pence |
|
Proposed final dividend per share |
|
|
- |
|
10.0 |
|
|
Interim dividend per share |
|
|
4.7 |
|
4.7 |
|
|
Proposed total dividend per share |
|
|
4.7 |
|
14.7 |
|
|
Non-GAAP measures |
|
|
53 weeks ended |
|
52 weeks |
|
Reconciliation of profit before tax (PBT) to benchmark PBT |
Notes |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
Profit before tax |
|
|
104.1 |
|
265.2 |
|
Adjusted for: |
|
|
|
|
|
|
Exceptional items |
3 |
|
20.3 |
|
- |
|
Financing fair value remeasurements |
4 |
|
(3.3) |
|
(5.4) |
|
Financing impact on retirement benefit obligations |
4 |
|
(4.8) |
|
(4.6) |
|
Discount unwind on non-benchmark items |
4 |
|
6.7 |
|
6.1 |
|
Amortisation of acquisition intangibles |
|
|
1.2 |
|
- |
|
Onerous lease provision releases |
7 |
|
(8.5) |
|
(7.2) |
|
|
|
|
|
|
|
|
Benchmark PBT |
|
|
115.7 |
|
254.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benchmark earnings per share |
|
|
pence |
|
pence |
|
- Basic |
6 |
|
10.0 |
|
21.3 |
|
- Diluted |
6 |
|
10.0 |
|
21.2 |
Consolidated statement of comprehensive income
For the 53 weeks ended 3 March 2012
|
|
|
53 weeks ended |
52 weeks ended |
|
|
|
£m |
£m |
|
Profit for the year attributable to equity holders of the Company |
|
72.8 |
190.9 |
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
Net change in fair value of cash flow hedges |
|
|
|
|
- Foreign currency forward exchange contracts |
|
10.8 |
(43.3) |
|
Net change in fair value of cash flow hedges transferred to inventory |
|
|
|
|
- Foreign currency forward exchange contracts |
|
9.3 |
(15.9) |
|
Actuarial (loss)/gain on defined benefit pension schemes |
|
(121.2) |
1.9 |
|
Fair value movements on available-for-sale financial assets |
|
0.2 |
1.3 |
|
Currency translation differences |
|
(3.3) |
(6.1) |
|
Tax credit in respect of items taken directly to equity |
|
24.7 |
15.7 |
|
|
|
|
|
|
Other comprehensive income for the year, net of tax |
|
(79.5) |
(46.4) |
|
|
|
|
|
|
Total comprehensive income for the year attributable to equity holders of the Company |
|
(6.7) |
144.5 |
|
|
|
|
|
Consolidated balance sheet
At 3 March 2012
|
|
|
3 March 2012 |
26 February 2011 |
|
|
Notes |
£m |
£m |
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Goodwill |
|
1,543.9 |
1,541.0 |
|
Other intangible assets |
|
137.1 |
107.8 |
|
Property, plant and equipment |
|
516.3 |
523.4 |
|
Investment in joint ventures and associates |
|
8.3 |
8.0 |
|
Deferred tax assets |
|
50.6 |
39.4 |
|
Trade and other receivables |
|
3.8 |
4.3 |
|
Other financial assets |
|
17.4 |
15.2 |
|
|
|
|
|
|
Total non-current assets |
|
2,277.4 |
2,239.1 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
933.2 |
1,016.8 |
|
Trade and other receivables |
|
594.6 |
610.3 |
|
Current tax assets |
|
0.8 |
10.9 |
|
Other financial assets |
|
8.3 |
1.4 |
|
Current asset investments |
|
- |
100.0 |
|
Cash and cash equivalents |
|
194.3 |
159.3 |
|
|
|
|
|
|
Total current assets |
|
1,731.2 |
1,898.7 |
|
|
|
|
|
|
Total assets |
|
4,008.6 |
4,137.8 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Trade and other payables |
|
(55.8) |
(58.7) |
|
Provisions |
7 |
(187.5) |
(187.4) |
|
Deferred tax liabilities |
|
(21.9) |
(24.5) |
|
Retirement benefit obligations |
|
(115.3) |
(7.5) |
|
|
|
|
|
|
Total non-current liabilities |
|
(380.5) |
(278.1) |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
(944.9) |
(1,047.5) |
|
Provisions |
7 |
(47.8) |
(20.4) |
|
Other financial liabilities |
|
(5.2) |
(29.4) |
|
Current tax liabilities |
|
(4.8) |
(21.2) |
|
|
|
|
|
|
Total current liabilities |
|
(1,002.7) |
(1,118.5) |
|
|
|
|
|
|
Total liabilities |
|
(1,383.2) |
(1,396.6) |
|
|
|
|
|
|
Net assets |
|
2,625.4 |
2,741.2 |
|
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital |
|
81.3 |
81.3 |
|
Capital redemption reserve |
|
6.4 |
6.4 |
|
Merger reserve |
|
(348.4) |
(348.4) |
|
Other reserves |
|
8.6 |
(5.6) |
|
Retained earnings |
|
2,877.5 |
3,007.5 |
|
|
|
|
|
|
Total equity |
|
2,625.4 |
2,741.2 |
|
|
|
|
|
Consolidated statement of changes in equity
For the 53 weeks ended 3 March 2012
|
|
|
|
Attributable to equity holders of the Company |
||||
|
|
|
|
Capital |
|
|
|
|
|
|
|
Share |
redemption |
Merger |
Other |
Retained |
|
|
|
|
capital |
reserve |
reserve |
reserves |
earnings |
Total |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
Balance at 27 February 2011 |
|
81.3 |
6.4 |
(348.4) |
(5.6) |
3,007.5 |
2,741.2 |
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
- |
72.8 |
72.8 |
|
Other comprehensive income |
|
- |
- |
- |
11.4 |
(90.9) |
(79.5) |
|
Total comprehensive income for the year ended 3 March 2012 |
- |
- |
- |
11.4 |
(18.1) |
(6.7) |
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
Movement in share-based compensation reserve |
- |
- |
- |
- |
8.9 |
8.9 |
|
|
Net movement in own shares |
|
- |
- |
- |
2.8 |
(2.7) |
0.1 |
|
Equity dividends paid during the year |
|
- |
- |
- |
- |
(117.5) |
(117.5) |
|
Other distributions |
|
- |
- |
- |
- |
(0.6) |
(0.6) |
|
Total transactions with owners |
|
- |
- |
- |
2.8 |
(111.9) |
(109.1) |
|
|
|
|
|
|
|
|
|
|
Balance at 3 March 2012 |
|
81.3 |
6.4 |
(348.4) |
8.6 |
2,877.5 |
2,625.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
Attributable to equity holders of the Company |
||||
|
|
|
|
Capital |
|
|
|
|
|
|
|
Share |
redemption |
Merger |
Other |
Retained |
|
|
|
|
capital |
reserve |
reserve |
reserves |
earnings |
Total |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
Balance at 28 February 2010 |
|
87.7 |
- |
(348.4) |
46.6 |
3,080.7 |
2,866.6 |
|
|
|
|
|
|
|
|
|
|
Profit for the year |
|
- |
- |
- |
- |
190.9 |
190.9 |
|
Other comprehensive income |
|
- |
- |
- |
(49.1) |
2.7 |
(46.4) |
|
Total comprehensive income for the year ended 26 February 2011 |
- |
- |
- |
(49.1) |
193.6 |
144.5 |
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners: |
|
|
|
|
|
|
|
|
Movement in share-based compensation reserve |
- |
- |
- |
- |
11.9 |
11.9 |
|
|
Shares purchased for cancellation |
(6.4) |
6.4 |
- |
- |
(150.2) |
(150.2) |
|
|
Net movement in own shares |
|
- |
- |
- |
(3.1) |
(3.2) |
(6.3) |
|
Equity dividends paid during the year |
|
- |
- |
- |
- |
(123.9) |
(123.9) |
|
Other distributions |
|
- |
- |
- |
- |
(1.4) |
(1.4) |
|
Total transactions with owners |
|
(6.4) |
6.4 |
- |
(3.1) |
(266.8) |
(269.9) |
|
|
|
|
|
|
|
|
|
|
Balance at 26 February 2011 |
|
81.3 |
6.4 |
(348.4) |
(5.6) |
3,007.5 |
2,741.2 |
Further details on equity movements are shown in note 8.
Consolidated statement of cash flows
For the 53 weeks ended 3 March 2012
|
|
|
53 weeks ended 3 March 2012 |
52 weeks ended 26 February 2011 |
|
|
Notes |
£m |
£m |
|
Cash flows from operating activities |
|
|
|
|
Cash generated from operations |
9 |
234.5 |
278.8 |
|
Tax paid |
|
(26.8) |
(11.3) |
|
|
|
|
|
|
Net cash inflow from operating activities |
|
207.7 |
267.5 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Acquisition of business |
|
(24.5) |
- |
|
Purchase of property, plant and equipment |
|
(97.1) |
(102.2) |
|
Proceeds from the disposal of property, plant and equipment |
|
3.9 |
3.4 |
|
Purchase of other intangible assets |
|
(37.8) |
(43.9) |
|
Loans granted to joint ventures and associates |
|
(1.2) |
(0.4) |
|
Purchase of investments |
|
(0.9) |
(151.4) |
|
Disposal of investments |
|
100.0 |
100.0 |
|
Interest received |
|
2.4 |
2.6 |
|
|
|
|
|
|
Net cash used in investing activities |
|
(55.2) |
(191.9) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Repurchase of own shares |
|
- |
(150.2) |
|
Purchase of shares for Employee Share Trust |
8 |
- |
(6.7) |
|
Proceeds from disposal of shares held by Employee Share Trust |
|
0.1 |
0.4 |
|
Dividends paid |
|
(117.5) |
(123.9) |
|
|
|
|
|
|
Net cash used in financing activities |
|
(117.4) |
(280.4) |
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
35.1 |
(204.8) |
|
|
|
|
|
|
Movement in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at the beginning of the year |
|
159.3 |
364.0 |
|
Effect of foreign exchange rate changes |
|
(0.1) |
0.1 |
|
Net increase/(decrease) in cash and cash equivalents |
|
35.1 |
(204.8) |
|
|
|
|
|
|
Cash and cash equivalents at the end of the year |
|
194.3 |
159.3 |
|
|
|
|
|
Analysis of net cash/(debt)
At 3 March 2012
|
|
|
3 March |
26 February 2011 |
|
Non-GAAP measures |
|
£m |
£m |
|
|
|
|
|
|
Financing net cash: |
|
|
|
|
Cash and cash equivalents |
|
194.3 |
159.3 |
|
Current asset investments |
|
- |
100.0 |
|
|
|
|
|
|
Total financing net cash |
|
194.3 |
259.3 |
|
|
|
|
|
|
|
|
|
|
|
Operating net debt: |
|
|
|
|
Off balance sheet operating leases |
|
(2,701.7) |
(2,874.1) |
|
|
|
|
|
|
Total operating net debt |
|
(2,701.7) |
(2,874.1) |
|
|
|
|
|
|
Total net debt |
|
(2,507.4) |
(2,614.8) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted for: |
|
|
|
|
Off balance sheet operating leases |
|
2,701.7 |
2,874.1 |
|
Current asset investments |
|
- |
(100.0) |
|
|
|
|
|
|
Total cash and cash equivalents reflected in balance sheet |
|
194.3 |
159.3 |
|
|
|
|
|
The Group uses the term 'total net debt' to highlight 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 £2,701.7m (2011: £2,874.1m), based upon discounting the current rentals at the estimated current long-term cost of borrowing of 3.4% (2011: 4.1%).
Current asset investments in the comparative period comprised term cash deposits invested for initial terms of between six and nine months, which matured after the balance sheet date. There are no such investments at 3 March 2012.
Notes
For the 53 weeks ended 3 March 2012
1. BASIS OF PREPARATION
The financial information, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity, consolidated statement of cash flows and related notes, is derived from the full Group consolidated financial statements for the 53 weeks to 3 March 2012 and does not constitute full accounts within the meaning of Section 435 (1) and (2) of the Companies Act 2006. The Group's Annual Report and Financial Statements 2012, on which the auditors have given an unqualified audit report and which does not contain a statement under Section 498 (2) or (3) of the Companies Act 2006, will be delivered to the Registrar of Companies in due course, and made available to shareholders in June 2012. The financial year represents the 53 weeks to 3 March 2012 (prior financial year 52 weeks to 26 February 2011).
The Group consolidated financial statements are presented in sterling, rounded to the nearest hundred thousand. They are prepared on a going concern basis and under the historic cost basis modified for the revaluation of certain financial instruments, share-based payments and post-employment benefits. 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 2011. 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 (benchmark 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, 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 highlights the Group's aggregate net indebtedness to banks and other financial institutions together with debt-like liabilities, notably operating leases.
Notes
For the 53 weeks ended 3 March 2012
|
|
53 weeks ended 3 March 2012 |
52 weeks ended 26 February 2011 |
|
3. EXCEPTIONAL ITEMS |
£m |
£m |
|
|
|
|
|
Reorganisation and restructuring charges |
(20.3) |
- |
|
|
|
|
|
Exceptional items in operating profit |
(20.3) |
- |
|
|
|
|
|
Tax on exceptional items in profit before tax |
3.3 |
- |
|
|
|
|
|
Exceptional tax |
3.3 |
- |
|
|
|
|
|
Exceptional loss after tax for the year |
(17.0) |
- |
|
|
|
|
|
Reorganisation and restructuring actions announced during the 53 weeks to 3 March 2012 include the closure of the Group's UK homewares trial format, HomeStore&More, and the proposed closure of one of the Group's distribution warehouses. |
||
|
|
||
|
|
53 weeks ended 3 March 2012 |
52 weeks ended 26 February 2011 |
|
4. NET FINANCING INCOME |
£m |
£m |
|
Finance income: |
|
|
|
|
|
|
|
Bank deposits and other interest |
1.8 |
2.6 |
|
Expected return on retirement benefit assets |
48.0 |
46.9 |
|
Financing fair value remeasurements - net exchange gains |
3.5 |
7.8 |
|
|
|
|
|
Total finance income |
53.3 |
57.3 |
|
|
|
|
|
Finance expense: |
|
|
|
|
|
|
|
Unwinding of discounts |
(8.4) |
(8.7) |
|
Financing fair value remeasurements - net exchange losses |
(0.2) |
(2.4) |
|
Interest expense on retirement benefit liabilities |
(43.2) |
(42.3) |
|
|
|
|
|
Total finance expense |
(51.8) |
(53.4) |
|
Less: finance expense charged to Financial Services cost of sales |
3.4 |
3.2 |
|
|
|
|
|
Total net finance expense |
(48.4) |
(50.2) |
|
Net financing income |
4.9 |
7.1 |
Included within unwinding of discounts is a £6.7m charge (2011: £6.1m) relating to the discount unwind on non-benchmark onerous lease provisions.
Notes
For the 53 weeks ended 3 March 2012
|
|
|
|
53 weeks ended 3 March |
52 weeks ended 26 February 2011 |
|
5. DIVIDENDS |
|
|
£m |
£m |
|
|
|
|
|
|
|
Amounts recognised as distributions to equity holders |
|
|
|
|
|
Final dividend of 10.0p per share (2011: 10.0p) for the prior year |
|
|
(79.9) |
(85.8) |
|
Interim dividend of 4.7p per share (2011: 4.7p) for the current year |
|
|
(37.6) |
(38.1) |
|
|
|
|
|
|
|
Ordinary dividends on equity shares |
|
|
(117.5) |
(123.9) |
|
The Board of Directors does not recommend a final dividend in respect of the year ended 3 March 2012. This would make a total dividend for the year of 4.7p per share, amounting to £37.6m. The Home Retail Group Employee Share Trust (EST) has waived its entitlement to dividends in the amount of £2.1m (2011: £1.9m). |
||||
|
6. 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 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.
|
||||||
|
|
|
|
53 weeks ended 3 March 2012 |
52 weeks ended 26 February 2011 |
||
|
Earnings |
|
|
£m |
£m |
||
|
|
|
|
|
|
||
|
Profit after tax for the financial year |
|
|
72.8 |
190.9 |
||
|
Adjusted for: |
|
|
|
|
||
|
Exceptional items |
|
|
20.3 |
- |
||
|
Financing fair value remeasurements |
|
|
(3.3) |
(5.4) |
||
|
Financing impact on retirement benefit obligations |
|
|
(4.8) |
(4.6) |
||
|
Discount unwind on non-benchmark items |
|
|
6.7 |
6.1 |
||
|
Amortisation of acquisition intangibles |
|
|
1.2 |
- |
||
|
Onerous lease provision releases |
|
|
(8.5) |
(7.2) |
||
|
Attributable taxation |
|
|
0.5 |
1.8 |
||
|
Non-benchmark tax credit in respect of prior years |
|
|
(4.8) |
(5.4) |
||
|
Tax rate change |
|
|
0.1 |
0.4 |
||
|
|
|
|
|
|
||
|
Benchmark profit after tax for the financial year |
|
|
80.2 |
176.6 |
||
|
|
|
|
|
|
||
|
Weighted average number of shares |
|
|
millions |
millions |
||
|
|
|
|
|
|
||
|
Number of ordinary shares for the purpose of basic EPS |
|
|
799.4 |
827.4 |
||
|
Dilutive effect of share incentive awards |
|
|
3.9 |
3.9 |
||
|
|
|
|
|
|
||
|
Number of ordinary shares for the purpose of diluted EPS |
|
|
803.3 |
831.3 |
||
|
|
|
|
|
|
||
|
EPS |
|
|
pence |
pence |
||
|
|
|
|
|
|
||
|
Basic EPS |
|
|
9.1 |
23.1 |
||
|
Diluted EPS |
|
|
9.1 |
23.0 |
||
|
|
|
|
|
|
||
|
Basic benchmark EPS |
|
|
10.0 |
21.3 |
||
|
Diluted benchmark EPS |
|
|
10.0 |
21.2 |
||
Notes
For the 53 weeks ended 3 March 2012
|
|
|
|
Onerous leases |
Insurance |
Restructuring |
Other |
Total |
|
7. PROVISIONS |
|
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
At 27 February 2011 |
|
|
(157.9) |
(31.9) |
(7.8) |
(10.2) |
(207.8) |
|
Transfer from accruals |
|
|
- |
(14.1) |
- |
- |
(14.1) |
|
Exchange differences |
|
|
0.8 |
- |
- |
- |
0.8 |
|
Charged to the income statement |
|
|
- |
(5.8) |
(20.3) |
(5.2) |
(31.3) |
|
Released to the income statement |
|
|
8.5 |
- |
- |
1.0 |
9.5 |
|
Acquired through business combination |
|
- |
- |
- |
(0.5) |
(0.5) |
|
|
Utilised during the year |
|
|
3.5 |
5.1 |
3.8 |
4.4 |
16.8 |
|
Discount unwind |
|
|
(8.4) |
- |
- |
(0.3) |
(8.7) |
|
|
|
|
|
|
|
|
|
|
At 3 March 2012 |
|
|
(153.5) |
(46.7) |
(24.3) |
(10.8) |
(235.3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
2011 |
|
Analysed as: |
|
|
|
|
|
£m |
£m |
|
|
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
(47.8) |
(20.4) |
|
Non-current |
|
|
|
|
|
(187.5) |
(187.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(235.3) |
(207.8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 trading or sublet income. The majority of this provision is expected to be utilised over the period to 2019.
Provision is made at the year-end for the estimated costs of insurance claims incurred by the Group 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 2017.
A number of organisational changes have been announced to improve the operational efficiency of the Group and drive further cost productivity. Actions announced during the 53 weeks to 3 March 2012 include the closure of the Group's UK homewares trial format, HomeStore&More, and the proposed closure of one of the Group's distribution warehouses. The majority of this 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 53 weeks ended 3 March 2012
8. NOTES TO THE CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital redemption reserve
The capital redemption reserve arose as a result of the share buy-back programme that was undertaken during the year ended 26 February 2011.
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.
The net credit arising on the movement in own shares of £2.8m (2011: debit of £3.1m) represents the utilisation or sale of shares held for the purpose of satisfying obligations arising from the Group's share-based compensation schemes net of the purchase of additional shares to satisfy awards vesting in the future. 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 3 March 2012, the EST held 13,525,067 (2011: 14,730,719) shares with a market value of £14.1m (2011: £32.7m). The shares in the EST are held within equity of the Group at a cost of £21.6m (2011: £23.5m). No shares were acquired during the year (2011: 3,000,000 at a cost of £6.7m). 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 3 March 2012, the Trust held 698,305 (2011: 910,832) shares with a market value of £0.7m (2011: £2.0m). These shares are held within equity of the Group at a cost of £2.9m (2011: £3.8m). No additional shares were purchased during the year.
|
9. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
|
|
|
53 weeks ended 3 March 2012 |
52 weeks ended 26 February 2011 |
|
Cash generated from operations |
|
£m |
£m |
|
Profit before tax |
|
104.1 |
265.2 |
|
Adjustments for: |
|
|
|
|
Share of post-tax profit of joint ventures and associates |
|
(0.5) |
(0.1) |
|
Net financing income |
|
(4.9) |
(7.1) |
|
Operating profit |
|
98.7 |
258.0 |
|
|
|
|
|
|
Loss on sale of property, plant and equipment |
|
1.8 |
0.7 |
|
Depreciation and amortisation |
|
126.5 |
127.5 |
|
Finance expense charged to Financial Services cost of sales |
|
3.4 |
3.2 |
|
|
|
|
|
|
Decrease/(increase) in inventories |
|
85.8 |
(81.4) |
|
Decrease/(increase) in receivables |
|
16.1 |
(27.5) |
|
(Decrease)/increase in payables |
|
(102.5) |
19.0 |
|
Movement in working capital |
|
(0.6) |
(89.9) |
|
|
|
|
|
|
Increase/(decrease) in provisions |
|
5.0 |
(20.3) |
|
Movement in retirement benefit obligations |
|
(8.6) |
(10.9) |
|
Share-based payment expense (net of dividend equivalent payments) |
|
8.3 |
10.5 |
|
Cash generated from operations |
|
234.5 |
278.8 |
Notes
For the 53 weeks ended 3 March 2012
10. RELATED PARTIES
The Group's related parties are its associates, key management personnel and the Home Retail Group Pension Scheme.
The Group provided an amount of £1.2m by way of loan to its associate, Ogalas Limited. At 3 March 2012, the amount owed by Ogalas Limited to the Group was £1.1m. There were no other material transactions between the Group and its associates.
During the year, the Group has paid contributions totalling £25.8m (2011: £28.0m) to the Home Retail Group Pension Scheme including £10.0m (2011: £12.0m) as part of the deficit recovery plan agreed with the scheme trustees following the completion of the 31 March 2009 actuarial valuation.
During the year, there were no material transactions or balances between the Group and its key management personnel or members of their close families.
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 53 weeks ended 3 March 2012 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.
The directors are responsible for keeping adequate 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.
A list of current directors of Home Retail Group plc is maintained on the Home Retail Group website, www.homeretailgroup.com.
By order of the Board
Terry Duddy Richard Ashton
Chief Executive Finance Director
2 May 2012 2 May 2012
This information is provided by RNS
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