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MARKS AND SPENCER GROUP PLC 55
29 ANALYSIS OF CASH FLOWS GIVEN IN THE CASH FLOW STATEMENT Group
2005 2004
£m £m
A Exceptional operating cash flows
UK restructuring costs (27.0) (8.0)
Closure of Lifestore (3.1) –
Defence costs (36.2) –
Board restructure (7.7) –
Head office relocation (12.6) (10.5)
Restructuring of general merchandise logistics operations (0.7) (29.7)
Exceptional operating cash outflow (87.3) (48.2)
B Management of liquid resources
Decrease/(increase) in cash deposits treated as liquid resources 55.7 (65.5)
Net sale of government securities 7.8 44.6
Net sale/(purchase) of listed investments 3.3 (67.9)
Net purchase of unlisted investments (0.1) (0.2)
Cash inflow/(outflow) from decrease/(increase) in liquid resources 66.7 (89.0)
C Financing
Increase/(decrease) in bank loans, overdrafts and commercial paper treated as financing 649.0 (22.3)
Drawdown of syndicated bank facility 200.0 –
(Redemption)/issue of medium term notes (95.2) 441.7
Redemption of securitised loan notes (2.8) (2.5)
Increase/(decrease) in other creditors treated as financing 6.6 (3.3)
Debt financing as shown in analysis of net debt (see note 31) 757.6 413.6
Purchase of own shares (2,300.0) (54.4)
Tender Offer expenses (14.9) –
Net sale/(purchase) of own shares held by employee trusts 0.6 (3.6)
Redemption of B shares (19.2) (33.4)
Shares issued under employees’ share schemes 68.4 24.8
Net cash (outflow)/inflow from (decrease)/increase in financing (1,507.5) 347.0
30 ACQUISITION AND DISPOSALS
A Acquisition of per una
As described in note 13, on 4 October 2004 the Group acquired the per una group of companies for a total consideration of £125.9m.
£m
Net assets acquired10.4
Goodwill 125.5
Consideration 125.9
Consideration satisfied by:
Cash 125.9
1Net assets acquired include £1.4m of assets offset by £1.0m of liabilities. There were no fair value adjustments. The Group has adopted acquisition
accounting for the acquisition of the per una group of companies.
Per Una Group Limited was a newly formed entity into which the net assets and liabilities acquired were transferred immediately prior to the acquisition date.
As separate accounts were not maintained for this entity in the period prior to the acquisition date, separate figures for profit after tax are not available. Based
on the available information, the profit before tax attributable to the acquired business in the year to 31 March 2004 and in the six months prior to acquisition
was approximately £17m and £15m respectively. These pre-acquisition figures for the acquired business have been adjusted to reflect the post acquisition
structure for the per una group. In the six months prior to acquisition, the value of goods purchased from the acquired business was £85.2m.