Notes to the financial statements
For the 52 weeks ended 1 March 2008
34. Notes to the consolidated cash flow statement
| Cash generated from operations | 2008 £m |
2007 £m |
|---|---|---|
| Profit before tax | 426.0 | 296.9 |
| Adjustments for: | ||
| Share of post-tax profits of joint ventures and associates | (1.6) | (0.7) |
| Net financing (income)/costs | (37.3) | 9.0 |
| Operating profit | 387.1 | 305.2 |
| Loss on sale of property, plant and equipment | 0.4 | 0.9 |
| Loss on sale of subsidiary | – | 1.1 |
| Depreciation and amortisation | 151.6 | 146.4 |
| Impairment losses | 10.3 | 4.1 |
| Finance expense charged to Financial Services cost of sales | 19.6 | 16.4 |
| Increase in inventories | (98.4) | (23.4) |
| Increase in receivables | (21.2) | (42.7) |
| Increase in payables | 71.5 | 193.3 |
| Movement in working capital | (48.1) | 127.2 |
| Increase/(decrease) in provisions | 9.2 | (6.3) |
| Movement in retirement benefits | 12.5 | 10.0 |
| Share-based payment expense | 21.6 | 15.9 |
| Cash generated from operations | 564.2 | 620.9 |
| Reconciliation of net increase in cash and cash equivalents to movement in net debt | 2008 £m |
2007 £m |
|---|---|---|
| Net cash/(debt) at beginning of the period | 60.2 | (178.0) |
| Effect of foreign exchange rate changes | 1.8 | (3.0) |
| Net (decrease)/increase in cash and cash equivalents | (111.6) | 156.8 |
| Decrease in debt (note 23) | 223.6 | 84.4 |
| Net cash at the end of the period | 174.0 | 60.2 |
Major non-cash transactions
Home Retail Group did not enter into any new finance lease arrangements during the period (2007: £nil).
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