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John Lewis Partnership plc Interim Report 2009


Notes to the financial statements continued

8 Reconciliation of profit before tax to cash generated from operations

Half year to 1 August 2009 Half year to 26 July 2008 Restated Year to 31 January 2009 Restated
£m £m £m

Profit before tax 86.3 107.3 281.6
Amortisation of intangible assets 11.6 10.0 21.0
Depreciation 97.1 85.5 181.1
Net finance costs 39.9 22.9 43.7
Partnership bonus provision – – 125.4
Profit on disposal of associate – – (127.4)
Loss/(profit) on disposal of property, plant and equipment 0.7 (2.8) 0.6
Decrease/(increase) in inventories 8.0 1.3 (7.4)
(Increase)/decrease in receivables (5.6) 47.1 75.7
Increase/(decrease) in payables 44.9 (21.6) (40.6)
(Decrease)/increase in retirement benefit obligations (2.1) 1.5 18.2
Increase in provisions 4.4 2.4 14.2

Cash generated from operations 285.2 253.6 586.1

Prior half year figures have been restated in respect of the financing element of pension costs and prior half year and prior full year figures have been restated in respect of the financing element of long service leave costs, as explained in note 2.


9 Analysis of net debt

31 January 2009 Cash flow Other non-cash movements 1 August 2009
£m £m £m £m

Current assets
Cash and cash equivalents 197.6 135.5 – 333.1
Derivative financial instruments 23.4 – (5.2) 18.2

221.0 135.5 (5.2) 351.3

Current liabilities
Bank overdrafts (75.8) 12.0 – (63.8)
Finance leases (0.6) 0.4 (0.4) (0.6)
Derivative financial instruments – – (2.8) (2.8)

(76.4) 12.4 (3.2) (67.2)

Non-current liabilities
Borrowings (532.4) (286.5) – (818.9)
Fair value adjustment for hedged risk on bonds (15.4) – (1.7) (17.1)
Finance leases (29.2) – 0.4 (28.8)

(577.0) (286.5) (1.3) (864.8)

Total net debt (432.4) (138.6) (9.7) (580.7)