Preliminary results for the year ended 30 January 2010
Notes to the consolidated financial statements
Year ended 30 January 2010
4. Exceptional items
| £ millions | 2009/10 | 2008/09 |
|---|---|---|
| Included within cost of sales | ||
| China restructuring | - | (21) |
| - | (21) | |
| Included within selling and distribution expenses | ||
| China restructuring | - | (86) |
| UK restructuring | - | (19) |
| - | (105) | |
| Included within administrative expenses | ||
| Impairment of goodwill | - | (124) |
| - | (124) | |
| Included within other income | ||
| Profit on disposal of properties | 17 | 13 |
| 17 | 13 | |
| Included within share of post-tax results of joint ventures and associates | ||
| Impairment of investment in Hornbach | - | (36) |
| - | (36) | |
| Exceptional items before tax | 17 | (273) |
| Tax on exceptional items | (7) | 7 |
| Exceptional items – continuing operations | 10 | (266) |
| Exceptional items – discontinued operations | - | 178 |
| Exceptional items | 10 | (88) |
The Group has recorded an exceptional profit of £17m on the disposal of properties (2008/09: £13m profit).
In the prior year, an exceptional loss of £107m was recorded relating to the B&Q China turnaround plan. The plan involved rationalising the store portfolio from 63 to 41 and then revamping the remaining stores. The exceptional loss comprised store asset impairments, lease exits, inventory write downs and employee redundancy costs. The total charge included £19m relating to the termination of leases, which was included within restructuring provisions, £55m relating to the impairment of property, plant and equipment and £21m relating to the write down of inventories.
In the prior year, the Group recorded an exceptional loss of £19m following the announcement that Trade Depot in the UK would be closed, which included a loss on disposal of properties of £6m.
In the prior year, an exceptional loss of £124m was recorded on the impairment of goodwill in China based on a review of its recoverable amount. The goodwill balance was fully written down.
In the prior year, an exceptional loss of £36m was recorded on the write down of the Group’s investment in Hornbach.
In the prior year the Group disposed of Castorama Italy.
