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Kingfi sher plc<br />
<strong>Annual</strong> <strong>Report</strong><br />
<strong>and</strong> <strong>Accounts</strong><br />
2009/10<br />
Financial review<br />
Financial summary<br />
Profi t <strong>and</strong> EPS including all exceptional items for the year ended 30 January 2010 are set out below.<br />
2009/10 2008/09 Increase<br />
Profi t for the year £385m £206m 86.9%<br />
Basic EPS – total operations 16.5p 8.9p 85.4%<br />
A summary of the continuing reported fi nancial results for the year ended 30 January 2010 is set<br />
out below.<br />
2009/10 2008/09 Increase<br />
Sales £10,503m £10,026m 4.8%<br />
Adjusted pre-tax profi t £547m £368m 48.6%<br />
Adjusted basic earnings per share 16.4p 11.0p 49.1%<br />
Dividends 5.500p 5.325p 3.3%<br />
A reconciliation of statutory profi t to adjusted profi t is set out below:<br />
2009/10 2008/09<br />
£m £m Increase<br />
Profi t before taxation 566 90 528.9%<br />
Exceptional items before taxation (17) 273<br />
Profi t before exceptional items <strong>and</strong> taxation 549 363 51.2%<br />
Financing fair value remeasurements (2) 5<br />
Adjusted pre-tax profi t 547 368 48.6%<br />
Overview<br />
Total sales on continuing businesses grew 4.8% to £10.5 billion on a reported rate basis, <strong>and</strong><br />
1.1% on a constant currency basis. During the year, an additional three net new stores were<br />
opened taking the store network to 805 (excluding Turkey JV). This includes the impact of<br />
rationalising 20 net stores in China <strong>and</strong> fi ve in Trade Depot. On a like-for-like basis, Group sales<br />
were down 1.5%.<br />
Retail profi t before exceptional items grew by 32.1% to £664 million <strong>and</strong> by 74.6% to £681 million<br />
including exceptional items. In the current year there was an exceptional profi t of £17 million from<br />
the sale of properties.<br />
The net interest charge for the year was £57 million, down £26 million on the prior year. Lower<br />
average net debt levels <strong>and</strong> lower interest rates reduced net fi nance costs by £37 million. This<br />
was partly offset by a £11 million increase in the non cash accounting charge arising primarily<br />
from a higher net defi cit on the defi ned benefi t pension scheme.<br />
Profi t before tax grew by £476 million to £566 million as a result of improved trading in the year<br />
<strong>and</strong> the signifi cant level of exceptional costs in the prior year. On a more comparable basis, which<br />
removes the impact of one-off items <strong>and</strong> fair value remeasurements, adjusted pre-tax profi t<br />
grew by 48.6% to £547 million.<br />
Profi t for the year which included discontinued operations in the prior year grew by 86.9%<br />
to £385 million. Discontinued operations in the prior year related to Castorama Italy which was<br />
disposed of in 2008/09. This resulted in the Group recording a basic EPS of 16.5p which is<br />
up 7.6p (85.4%) in the year.<br />
Kevin O’Byrne<br />
Group Finance Director<br />
19