John Lewis Partnership plc annual report and accounts 2013
Investment in the future
Capital spending in 2012/13 was £376.9m, a decrease of £140.9m (27.2%). This reduction largely reflects fewer branch openings and lower spend on refurbishments. We expect capital spending in 2013/14 to return to 2011/12 levels.
Waitrose invested £198.2m, mainly on new branches opening in 2012/13 together with three extensions, branch refurbishments, investment in the implementation of a new warehouse management system to drive productivity in our supply chain, and also a number of retail systems improvements to aid efficiency and enhance the flexibility of our offer.
John Lewis invested £144.3m, with the mix of investment continuing to reflect the business strategy of opening new space, refurbishing key shops and investing in the information technology and distribution infrastructure to support omni-channel trading.
In addition, £34.4m was invested centrally, mainly in maintaining and modernising our information technology platforms, head office buildings and residential clubs
Cash flow and net debt
Cash generated from operations grew to £979.0m, an increase of £219.9m, or 29.0%.
At 26 January 2013, net debt was £371.9m, a decrease of £205.4m, or 35.6%, and gearing ratio decreased from 28.7% to 19.6%. During the year we repaid borrowings totalling £242m from available cash. In January 2013 we replaced a number of existing bilateral borrowing facilities with a new £325m five year syndicated facility, which was undrawn at year end.
Capital expenditure (£m)
2009 2010 2011 2012 2013
Waitrose: 234 303 354 293 198
John Lewis: 140 112 120 182 144
Group: 30 30 19 43 34
Operating cash flow and net debt (£m)
Total net debt: 432 402 548 577 372
Operating cash flow: 586 648 745 759 979
Gearing(1) ratio %
2009 2010 2011 2012 2013
25 24 27 29 20
Gearing is net debt divided by net assets.
9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100