John Lewis Partnership plc annual report and accounts 2013

Five year record – years ended January

2013                2012                2011                2010               2009*

£m                   £m                   £m                   £m                  £m

Waitrose                                       5,763.9        5,400.4        4,974.6        4,532.3        4,156.4

John Lewis                                    3,777.4        3,329.1        3,231.7        2,889.2        2,811.1

Gross sales                                   9,541.3        8,729.5        8,206.3     7,421.5        6,967.5

Revenue(1)

Waitrose                                       5,416.1        5,072.3        4,699.9        4,317.2        3,940.1

John Lewis                                    3,049.4        2,686.3        2,661.9        2,417.4        2,327.1

Revenue                                       8,465.5        7,758.6        7,361.8       6,734.6        6,267.2

Operating profit(2)

Waitrose                                          292.3           260.6           274.9          266.8           214.5

John Lewis                                       216.7           157.9           198.4          160.4           140.6

Corporate and other(3)                    (56.6)           (25.2)          (42.3)          (37.5)         (31.8)

Operating profit                           452.4           393.3           431.0           389.7           323.3

Net finance costs                          (42.8)           (39.5)          (63.1)        (83.1)         (43.7)

Exceptional gain in respect of

associate (Ocado)                            –                  –                  –                 –          127.4

Profit before Partnership

Bonus and tax                                  409.6           353.8           367.9        306.6           407.0

Partnership Bonus                            (210.8)        (165.2)        (194.5)    (151.3)       (125.4)

As a percentage of eligible pay          17%             14%           18%             15%             13%

Taxation                                           (47.1)           (52.4)          (46.0)          (48.8)         (48.1)     

Profit for the year retained in the business     151.7           136.2           127.4      106.5           233.5

Net assets                                 1,901.5        2,008.9        2,072.8    1,704.5        1,722.8

Pay                                        1,162.3        1,096.3        1,021.7          940.4           908.0

Number of employees at year end      84,700         80,900         76,500       72,400    68,300

Average number of employees           81,900         78,700         74,800      70,000       68,700

including part-time employees            46,800         42,900         40,800      37,300       35,900

Average number of FTEs                     53,200         51,100         48,500         45,900    45,100

*53 week year.

(1) Note 1 to the financial statements explains the difference between gross sales and revenue.

(2) The basis of allocation of pension costs to the divisions was changed in 2012 and is charged as a fixed proportion of total pay based on the estimated long-term costs of providing the benefit, with the differences between these costs and the total annual pension operating costs recognised in Corporate and other. This was income of £11.3m in 2013 (2012: £16.8m), which is principally due to market driven volatility.

(3) Corporate and other costs are principally corporate and shared service costs, transformation costs and Partnership Services.

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