John Lewis Partnership plc annual report and accounts 2013

Business review Review of performance (continued)

Net finance costs

Net finance costs increased by £3.3m (8.4%) to £42.8m. Net finance costs on borrowings and investments decreased by £0.3m (0.5%) to £60.0m whilst the financing elements of pensions and long leave and non-cash fair value adjustments increased by £3.6m (17.3%). Interest cover increased to 4.0, up 0.2 on last year.

Net finance costs (£m)

2009 2010 2011 2012 2013

Net finance costs: 44 83 63 40 43

Net finance costs excluding pensions, long leave and fair value adjustments: 35 45 62 60 60

Tax

The tax charge decreased compared with last year reflecting a lower effective tax rate of 23.7% compared to last year’s rate of 27.8%, due to a lower standard rate of corporation tax and tax in respect of prior years.

Interest cover (times)

2009 2010 2011 2012 2013

5.6 5.4 3.8 3.8 4.0 

Profit for the year

Profit for the year was £151.7m, up by £15.5m, or

11.4% on last year.

Profit for the year (£m)

2009 2010 2011 2012 2013

Profit for the year: 106 107 127 136 152

Exceptional gain of £127.4m in respect of the transfer of Ocado to the pension fund: 127

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