Financial summary

Profit and EPS including all exceptional items for the year ended 30 January 2010 are set out below.

A summary of the continuing reported financial results for the year ended 30 January 2010 is set out below.

A reconciliation of statutory profit to adjusted profit is set out below:

Overview

Total sales on continuing businesses grew 4.8% to £10.5 billion on a reported rate basis, and 1.1% on a constant currency basis. During the year, an additional three net new stores were opened taking the store network to 805 (excluding Turkey JV). This includes the impact of rationalising 20 net stores in China and five in Trade Depot. On a like-for-like basis, Group sales were down 1.5%.

Retail profit before exceptional items grew by 32.1% to £664 million and by 74.6% to £681 million including exceptional items. In the current year there was an exceptional profit of £17 million from the sale of properties.

The net interest charge for the year was £57 million, down £26 million on the prior year. Lower average net debt levels and lower interest rates reduced net finance costs by £37 million. This was partly offset by a £11 million increase in the non cash accounting charge arising primarily from a higher net deficit on the defined benefit pension scheme.

Profit before tax grew by £476 million to £566 million as a result of improved trading in the year and the significant level of exceptional costs in the prior year. On a more comparable basis, which removes the impact of one-off items and fair value remeasurements, adjusted pre-tax profit grew by 48.6% to £547 million.

Profit for the year which included discontinued operations in the prior year grew by 86.9% to £385 million. Discontinued operations in the prior year related to Castorama Italy which was disposed of in 2008/09. This resulted in the Group recording a basic EPS of 16.5p which is up 7.6p (85.4%) in the year.