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Interim results for the 26 weeks ended 30 July 2011

 

15 September 2011

 

Notes to the condensed consolidated financial statements (UNAUDITED)

for the 26 weeks ended 30 July 2011

5. Exceptional items

£ millions Half year ended
30 July 2011
Half year ended
31 July 2010
Year ended
29 January 2011
Included within selling and distribution expenses      
UK stores acquisition integration (2) - -
UK restructuring 2 (9) (9)
  - (9) (9)
Included within other income
Profit on disposal of properties
- 2 3
- 2 3
Exceptional items before tax - (7) (6)
Tax on exceptional items - 4 3
Exceptional items - (3) (3)

The Group acquired 29 Focus stores in the UK in May 2011 and has incurred £2m of costs during the period integrating these into the B&Q store network.

The UK restructuring credit of £2m reflects the release of an onerous property contract provision for an idle store previously included as part of the B&Q UK store closure and downsizing programme in 2005/06. This release followed the purchase of the store freehold in the period. The UK restructuring charge of £9m in the prior year reflected plans announced by the Group to consolidate its distribution network in the UK through the construction of a new regional distribution centre in the south of England and the closure of other sites. The provision covered primarily future costs of redundancies and dilapidations on the sites to be exited.

The profit on disposal of properties is £nil (2010/11: £2m) and for the year ended 29 January 2011 was £3m.