Tesco 2015 Annual Report Download - page 136

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2015
£m
2014
£m
(Loss)/profit before tax (6,376) 2,259
Net finance costs (Note 5) 571 432
Share of post-tax losses/(profits) of joint ventures and associates (Note 13) 13 (60)
Operating (loss)/profit of continuing operations (5,792) 2,631
Operating loss of discontinued operations (10) (925)
Depreciation and amortisation 1,552 1,567
Losses/(profits) arising on one-off property-related items from continuing operations 805 (98)
Losses/(profits) arising on other property-related items from continuing operations 44 (134)
Losses/(profits) arising on property-related items from discontinued operations 5162
Loss/(profit) arising on sale of non property-related items 46 (1)
Loss arising on sale of subsidiaries and other investments 41 1
Impairment of goodwill (Note 10) 116 540
Impairment of other investments –42
Impairment of investments in/loans to joint ventures and associates 712 –
Net charge of impairment of property, plant and equipment and intangible assets not included in property-related items 3,320 715
Adjustment for non-cash element of pensions charges 68 11
Additional contribution into pension scheme (13) (4)
Share-based payments 105 47
Tesco Bank non-cash items included in profit before tax 58 76
Decrease/(increase) in inventories 577 (115)
Decrease/(increase) in development stock 59 (8)
Decrease/(increase) in trade and other receivables 32 (33)
(Decrease)/increase in trade and other payables (449) 509
Increase/(decrease) in provisions 926 (73)
Tesco Bank increase in loans and advances to customers (Note 17) (846) (1,432)
Tesco Bank increase in trade and other receivables (60) ( 31)
Tesco Bank increase in customer and bank deposits and trade and other payables 186 867
Tesco Bank (decrease)/increase in provisions (15) 2
Decrease/(increase) in working capital 410 (314)
Cash generated from operations 1,467 4,316
Decrease/(increase) in working capital includes the impact of translating foreign currency working capital movements at average exchange rates rather than
year end exchange rates.
Losses/(profits) arising on property-related items from continuing operations shown above excludes movements in respect of provisions for onerous
contracts of £136m (2014: continuing operations: £(46)m; discontinued operations: £(37)m). These are included in ‘(losses)/profits arising on property-related
items’ as per the Group Income Statement.
Impact of one-off items on working capital movements
The decrease/(increase) in working capital shown above includes a £1,805m decrease (2014: £109m decrease) due to the impact of one-off items in the year.
This decrease is made up of a £569m (2014: £60m) decrease in inventories due to inventory valuations and provisions, a £964m increase (2014: £7m
decrease) in provisions due to onerous lease provisions and restructuring provisions, and a £272m (2014: £56m) decrease in working capital amounts
for trade and other receivables and trade and other payables, with the 2015 decrease principally due to the £208m corrections of commercial income.
Note 29 Reconciliation of (loss) profit before tax to cash generated from operations
134 Tesco PLC Annual Report and Financial Statements 2015
Notes to the Group financial statements continued