Notes to the financial statements

continued

8 Reconciliation of profit before tax to cash generated from operations

Half year to 30 July 2011 £m Half year to 31 July 2010 £m Year to 29 January 2011 £m

Profit before tax 90.4 110.5 173.4

Amortisation of intangible assets 14.9 13.0 24.0

Depreciation 121.2 105.4 215.5

Net finance costs 21.1 34.7 63.1

Partnership bonus provision – – 194.5

(Profit)/loss on disposal of tangible and intangible assets (0.3) 0.3 (1.0)

(Increase)/decrease in inventories (5.0) 16.8 (23.0)

Decrease/(increase) in receivables 18.9 (7.2) (42.5)

(Decrease)/increase in payables (13.2) (15.0) 132.1

(Decrease)/increase in retirement benefit obligations (6.9) (4.8) 0.6

(Decrease)/increase in provisions (2.9) 9.0 8.4

Cash generated from operations 238.2 262.7 745.1

9 Analysis of net debt

29 January 2011 £m Cash flow £m Other non cash movements £m 30 July 2011 £m

Current assets

Cash and cash equivalents 512.7 (108.0) – 404.7

Derivative financial instruments 8.6 – (3.6) 5.0

521.3 (108.0) (3.6) 409.7

Current liabilities

Bank overdrafts (165.3) (31.5) (42.0) (238.8)

Finance leases (0.8) 0.3 (0.4) (0.9)

Derivative financial instruments (1.0) – (1.2) (2.2)

(167.1) (31.2) (43.6) (241.9)

Non-current liabilities

Borrowings (874.7) (72.1) 42.0 (904.8)

Unamortised bond transaction costs 6.3 0.6 (0.3) 6.6

Fair value adjustment for hedged risk on bonds (6.2) – 3.4 (2.8)

Finance leases (28.0) – 0.4 (27.6)

(902.6) (71.5) 45.5 (928.6)

Total net debt (548.4) (210.7) (1.7) (760.8)