For the short period 1 April 2006 to 3 March 2007
| 2007 £m |
2006 £m |
|
| Profit before tax | 296.9 | 272.4 |
| Adjustments for: | ||
| Share of post-tax (profits)/losses of joint ventures and associates | (0.7) | 4.2 |
| Net financing costs | 9.0 | 44.7 |
| Operating profit | 305.2 | 321.3 |
| Loss on sale of property, plant and equipment | 0.9 | 1.0 |
| Loss on sale of subsidiary | 1.1 | – |
| Depreciation and amortisation | 146.4 | 134.9 |
| Impairment losses | 4.1 | 12.8 |
| (Increase)/decrease in inventories | (23.4) | 7.6 |
| (Increase)/decrease in receivables | (42.7) | 0.3 |
| Increase/(decrease) in payables | 193.3 | (30.9) |
| Movement in working capital | 127.2 | (23.0) |
| (Decrease)/increase in provisions | (6.3) | 1.0 |
| Movement in retirement benefits | 10.0 | (90.2) |
| Share based payment expense | 15.9 | 9.6 |
| Cash generated from operations | 604.5 | 367.4 |
| 2007 £m |
2006 £m |
|
| Net debt at 1 April | (178.0) | (103.9) |
| Effect of foreign exchange rate changes | (3.0) | – |
| Net increase in cash and cash equivalents | 156.8 | 110.0 |
| Decrease/(increase) in debt | 84.4 | (184.1) |
| Net debt at the end of the financial year | 60.2 | (178.0) |
(c) Major non-cash transactions
Home Retail Group did not enter into any new finance lease arrangements during
the period (2006: nil).