Preliminary Results Part 2

 

Consolidated income statement
Year ended 1 February 2014
				2013/14	2012/13 (restated - note 2)
		Before	Exceptional		Before	Exceptional
		exceptional	items		exceptional	items
£ millions	Notes	Items	(note 4)	Total	items	(note 4)	Total
Continuing operations:
Sales	3	11,125	-	11,125	10,573	-	10,573
Cost of sales		(7,005)	-	(7,005)	(6,618)	-	(6,618)
Gross profit		4,120	-	4,120	3,955	-	3,955
Selling and distribution expenses		(2,883)	2	(2,881)	(2,768)	(17)	(2,785)
Administrative expenses		(550)	-	(550)	(525)	(9)	(534)
Other income		37	2	39	36	-	36
Share of post-tax results of joint ventures and associates		22	(14)	8	20	-	20
Operating profit		746	(10)	736	718	(26)	692
Analysed as:
Retail profit	3	805	(10)	795	778	(26)	752
Central costs		(42)	-	(42)	(42)	-	(42)
Share of interest and tax of joint ventures and associates		(17)	-	(17)	(18)	-	(18)
Finance costs		(12)	-	(12)	(16)	-	(16)
Finance income		8	27	35	15	-	15
Net finance income/(costs)	5	(4)	27	23	(1)	-	(1)
Profit before taxation		742	17	759	717	(26)	691
Income tax expense	6	(163)	114	(49)	(128)	1	(127)
Profit for the year		579	131	710	589	(25)	564
Attributable to:
Equity shareholders of the Company				709			564
Non-controlling interests				1			-
				710			564
Earnings per share	7
Basic				30.0p			24.1p
Diluted				29.7p			23.8p
Adjusted basic				23.4p			22.3p
Adjusted diluted				23.2p			22.0p

 

 

The proposed final dividend for the year ended 1 February 2014, subject to approval by shareholders at the Annual General Meeting, is 6.78p per share.

 

Consolidated statement of comprehensive income Year ended 1 February 2014
£ millions	Notes	2013/14	2012/13
Profit for the year		710	564
Actuarial losses on post-employment benefits	9	(127)	(29)
Tax on items that will not be reclassified		65	(18)
Total items that will not be reclassified subsequently to profit or loss		(62)	(47)
Currency translation differences
Group		(210)	122
Joint ventures and associates		(25)	8
Transferred to income statement (note 4)		(31)	-
Cash flow hedges
Fair value losses		(4)	(14)
Losses/(gains) transferred to inventories		9	(8)
Tax on items that may be reclassified		2	4
Total items that may be reclassified subsequently to profit or loss		(259)	112
Other comprehensive income for the year		(321)	65
Total comprehensive income for the year		389	629
Attributable to:
Equity shareholders of the Company		388	629
Non-controlling interests		1	-
		389	629

 

Consolidated statement of changes in equity Year ended 1 February 2014
	Attributable to equity shareholders of the Company
£ millions		Share capital	Share premium	Own shares held	Retained earnings	Other reserves	Total	Non-controlling interests	Total equity
At 3 February 2013		373	2,204	(60)	3,106	525	6,148	8	6,156
Profit for the year		-	-	-	709	-	709	1	710
Other comprehensive income for the year		-	-	-	(62)	(259)	(321)	-	(321)
Total comprehensive income for the year		-	-	-	647	(259)	388	1	389
Share-based compensation		-	-	-	7	-	7	-	7
New shares issued under share schemes		-	5	-	-	-	5	-	5
Own shares issued under share schemes		-	-	49	(41)	-	8	-	8
Own shares purchased		-	-	(24)	-	-	(24)	-	(24)
Dividends		-	-	-	(224)	-	(224)	-	(224)
At 1 February 2014		373	2,209	(35)	3,495	266	6,308	9	6,317
At 29 January 2012		372	2,199	(134)	2,869	413	5,719	8	5,727
Profit for the year		-	-	-	564	-	564	-	564
Other comprehensive income for the year		-	-	-	(47)	112	65	-	65
Total comprehensive income for the year		-	-	-	517	112	629	-	629
Share-based compensation		-	-	-	9	-	9	-	9
New shares issued under share schemes		1	5	-	-	-	6	-	6
Own shares issued under share schemes		-	-	74	(68)	-	6	-	6
Dividends		-	-	-	(221)	-	(221)	-	(221)
At 2 February 2013		373	2,204	(60)	3,106	525	6,148	8	6,156

 

Consolidated balance sheet
At 1 February 2014
£ millions	Notes	2013/14	2012/13
Non-current assets
Goodwill		2,417	2,399
Other intangible assets		222	166
Property, plant and equipment		3,625	3,748
Investment property		50	66
Investments in joint ventures and associates		32	289
Post-employment benefits	9	-	71
Deferred tax assets		12	17
Derivatives		40	55
Other receivables		15	18
		6,413	6,829
Current assets
Inventories		2,054	2,083
Trade and other receivables		590	545
Derivatives		5	33
Current tax assets		15	9
Cash and cash equivalents		535	398
Assets held for sale		208	-
		3,407	3,068
Total assets		9,820	9,897
Current liabilities
Trade and other payables		(2,486)	(2,430)
Borrowings		(94)	(99)
Derivatives		(27)	(17)
Current tax liabilities		(175)	(289)
Provisions		(8)	(35)
		(2,790)	(2,870)
Non-current liabilities
Other payables		(86)	(115)
Borrowings		(230)	(332)
Derivatives		-	(12)
Deferred tax liabilities		(251)	(303)
Provisions		(46)	(38)
Post-employment benefits	9	(100)	(71)
		(713)	(871)
Total liabilities		(3,503)	(3,741)
Net assets		6,317	6,156
Equity
Share capital		373	373
Share premium		2,209	2,204
Own shares held		(35)	(60)
Retained earnings		3,495	3,106
Other reserves		266	525
Total attributable to equity shareholders of the Company		6,308	6,148
Non-controlling interests		9	8
Total equity		6,317	6,156

 

The financial statements were approved by the Board of Directors on 24 March 2014 and signed on its behalf by:

 

 

 

Sir Ian Cheshire                                                                  Karen Witts

Group Chief Executive                                                        Group Finance Director

 

Consolidated cash flow statement
Year ended 1 February 2014
£ millions	Notes	2013/14	2012/13
Operating activities
Cash generated by operations	10	976	730
Income tax paid		(142)	(129)
Net cash flows from operating activities		834	601
Investing activities
Purchase of businesses, net of cash acquired		(28)	-
Purchase of property, plant and equipment, investment property and intangible assets		(304)	(316)
Disposal of property, plant and equipment, investment property and intangible assets		12	17
Interest received		8	18
Dividends received from joint ventures and associates		11	10
Net cash flows from investing activities		(301)	(271)
Financing activities
Interest paid		(12)	(18)
Interest element of finance lease rental payments		(4)	(4)
Repayment of bank loans		(89)	(31)
Repayment of Medium Term Notes and other fixed term debt		(33)	(162)
Receipt on financing derivatives		6	-
Capital element of finance lease rental payments		(13)	(12)
New shares issued under share schemes		5	6
Own shares issued under share schemes		8	6
Own shares purchased		(24)	-
Dividends paid to equity shareholders of the Company		(224)	(221)
Net cash flows from financing activities		(380)	(436)
Net increase/(decrease) in cash and cash equivalents and bank overdrafts		153	(106)
Cash and cash equivalents and bank overdrafts at beginning of year		398	485
Exchange differences		(17)	19
Cash and cash equivalents and bank overdrafts at end of year	11	534	398

Notes

 

1          General information

 

Kingfisher plc ('the Company'), its subsidiaries, joint ventures and associates (together 'the Group') supply home improvement products and services through a network of retail stores and other channels, located mainly in the United Kingdom, continental Europe and China.

 

The Company is incorporated in the United Kingdom. The address of its registered office is 3 Sheldon Square, Paddington, London W2 6PX.

 

The Company is listed on the London Stock Exchange.

 

2          Basis of preparation

 

The consolidated financial statements of the Company, its subsidiaries, joint ventures and associates are made up to the nearest Saturday to 31 January each year.  The current financial year is the 52 weeks ended 1 February 2014 ('the year' or '2013/14').  The comparative financial year is the 53 weeks ended 2 February 2013 ('the prior year' or '2012/13'). The 53 weeks in the prior year only impacted the UK & Ireland businesses with all of the other businesses reporting on a calendar basis as a result of local requirements.

 

The directors of Kingfisher plc, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the consolidated financial statements for the year ended 1 February 2014.

 

The condensed financial information, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated balance sheet, consolidated cash flow statement and related notes do not constitute statutory financial statements for the 52 weeks ended 1 February 2014, but are derived from those statements. Statutory financial statements for 2012/13 have been filed with the Registrar of Companies and those for 2013/14 will be filed in due course. The Group's auditors have reported on both years' accounts; their reports were unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006. 

 

The condensed financial information has been abridged from the 2013/14 statutory financial statements, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ('IFRS') and those parts of the Companies Act 2006 applicable to companies reporting under IFRS and therefore the consolidated financial statements comply with Article 4 of the EU IAS legislation. The condensed financial information has been prepared under the historical cost convention, as modified by the use of valuations for certain financial instruments, share-based payments and post-employment benefits.

 

Accounting policies

 

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 2 February 2013, as described in note 2 of those financial statements, except where set out below.

 

IAS 19 (revised), 'Employee benefits', amends the accounting for employment benefits and the Group has applied it retrospectively in accordance with the transition provisions of the standard. The impact on the Group has been in the following areas:

·      The standard replaces the interest cost on the defined benefit obligation and the expected return on plan assets with a single net interest expense or income based on the net defined benefit asset or liability and the discount rate, measured at the beginning of the year. There is no change to determining the discount rate; this continues to reflect the yield on high-quality corporate bonds. For the current and comparative year, the Group's reported profit before taxation was not impacted as the expected rate of return on assets at the start of the current and prior year was the same as the discount rate for the UK scheme, the Group's principal defined benefit pension plan.

·      The revised standard also requires administrative costs of running the UK scheme to be reclassified from net finance costs to operating costs. For the current year the Group's reported operating profit is £3m lower and net finance income £3m higher than they would have been prior to the adoption of IAS 19 (revised). For the year ended 2 February 2013 the Group's reported operating profit is £3m lower and net finance costs £3m lower than previously reported.

 

The amendments to IAS 1, 'Presentation of items of other comprehensive income', require items presented in 'other comprehensive income' to be grouped by those items that may be reclassified subsequently to profit or loss and those that will never be reclassified, together with their associated income tax. The amendments have been applied retrospectively and the presentation of items of comprehensive income has been adjusted accordingly.

 

IFRS 13, 'Fair value measurement', has impacted the measurement of fair value for certain financial assets and liabilities.

Principal rates of exchange

 

		2013/14		2012/13
	Average rate	Year end rate	Average rate	Year end rate
Euro	1.18	1.22	1.23	1.15
US Dollar	1.57	1.64	1.59	1.57
Polish Zloty	4.95	5.17	5.13	4.79
Chinese Renminbi	9.62	9.97	10.01	9.80

 

Use of non-GAAP measures

 

In the reporting of financial information, the Group uses certain measures that are not required under IFRS, the generally accepted accounting principles (GAAP) under which the Group reports.  Kingfisher believes that retail profit, adjusted pre-tax profit, effective tax rate, adjusted post-tax profit and adjusted earnings per share provide additional useful information on underlying trends to shareholders. These and other non-GAAP measures such as net debt/cash are used by Kingfisher for internal performance analysis and incentive compensation arrangements for employees. The terms 'retail profit', 'exceptional items', 'adjusted', 'effective tax rate' and 'net debt/cash' are not defined terms under IFRS and may therefore not be comparable with similarly titled measures reported by other companies. They are not intended to be a substitute for, or superior to, GAAP measures.

 

Retail profit is defined as continuing operating profit before central costs (principally the costs of the Group's head office), exceptional items, amortisation of acquisition intangibles and the Group's share of interest and tax of joint ventures and associates.

 

The separate reporting of non-recurring exceptional items, which are presented as exceptional within their relevant income statement category, helps provide an indication of the Group's underlying business performance. The principal items which are included as exceptional items are:

·      non-trading items included in operating profit such as profits and losses on the disposal, closure or impairment of subsidiaries, joint ventures, associates and investments which do not form part of the Group's trading activities;

·      profits and losses on the disposal of properties; and

·      the costs of significant restructuring and incremental acquisition integration costs.

 

The term 'adjusted' refers to the relevant measure being reported for continuing operations excluding exceptional items, financing fair value remeasurements, amortisation of acquisition intangibles, related tax items and prior year tax items (including the impact of changes in tax rates on deferred tax). Financing fair value remeasurements represent changes in the fair value of financing derivatives, excluding interest accruals, offset by fair value adjustments to the carrying amount of borrowings and other hedged items under fair value hedge relationships. Financing derivatives are those that relate to underlying items of a financing nature.

 

The effective tax rate represents the effective income tax expense as a percentage of continuing profit before taxation excluding exceptional items. Effective income tax expense is the continuing income tax expense excluding tax on exceptional items and tax adjustments in respect of prior years and the impact of changes in tax rates on deferred tax.

 

Net debt/cash comprises borrowings and financing derivatives (excluding accrued interest), less cash and cash equivalents and current other investments.

 

3          Segmental analysis

 

Income statement

	2013/14
£ millions	UK & Ireland	France	Other International		Total
			Poland	Other
Sales	4,363	4,423	1,109	1,230	11,125
Retail profit	238	396	123	48	805
Exceptional items					(10)
Central costs					(42)
Share of interest and tax of joint ventures and associates					(17)
Operating profit					736
Net finance income					23
Profit before taxation					759

 

	2012/13 (restated)
£ millions	UK & Ireland	France	Other International		Total
			Poland	Other
Sales	4,316	4,194	1,029	1,034	10,573
Retail profit	231	397	107	43	778
Exceptional items					(26)
Central costs					(42)
Share of interest and tax of joint ventures and associates					(18)
Operating profit					692
Net finance costs					(1)
Profit before taxation					691

 

The current financial year is the 52 weeks ended 1 February 2014 with the comparative financial year being the 53 weeks ended 2 February 2013. This only impacts the UK & Ireland businesses with all of the other businesses reporting on a calendar basis as a result of local requirements. The effect of the 53rd week on the results of the Group in 2012/13 was the inclusion of an additional £72m sales and an immaterial benefit to retail profit.

 

The operating segments disclosed above are based on the information reported internally to the Board of Directors and Group Executive. This information is predominantly based on the geographical areas in which the Group operates and which are managed separately. The Group only has one business segment being the supply of home improvement products and services.

 

The 'Other International' segment consists of Poland, China, Spain, Russia, Romania, the associate Hornbach and the joint venture Koçtas in Turkey. Poland has been shown separately due to its significance.

 

Central costs principally comprise the costs of the Group's head office.

 

4        Exceptional items

 

£ millions	2013/14	2012/13
Included within selling and distribution expenses
Acquisition and integration costs	(5)	-
Ireland restructuring	7	(21)
UK restructuring	-	4
	2	(17)
Included within administrative expenses
UK restructuring	-	(20)
Net pension gain	-	11
	-	(9)
Included within other income
Profit on disposal of properties	2	-
	2	-
Included within share of post-tax results of joint ventures and associates
Net impairment of investment in Hornbach	(14)	-
	(14)	-
Included within finance income
Kesa demerger French tax case - repayment supplement income	27	-
	27	-
Exceptional items before tax	17	(26)
Tax on exceptional items	(4)	1
Kesa demerger French tax case	118	-
Exceptional items	131	(25)

 

Acquisition and integration costs of £5m principally comprise costs of acquiring and integrating the Bricostore Romania business.

 

The exceptional credit of £7m for Ireland restructuring reflects the release of provisions recorded in January 2013 when B&Q Ireland entered into an Examinership process. It successfully exited Examinership in May 2013 with the closure of only one store.

 

A net impairment loss of £14m has been recognised in the year on the Group's investment in Hornbach. This comprises a loss of £45m on remeasurement of the investment to fair value, following the Group's conclusion that it had lost the ability to exercise significant influence, offset by a £31m gain on the transfer from reserves of cumulative foreign exchange gains since transition to IFRS.

 

In July 2013 the Conseil d'Etat, France's ultimate court, found in favour of Kingfisher regarding the Kesa demerger tax case, which concluded the matter. Whilst a refund was received from the French tax authorities following the first positive decision in 2009, the Group continued to provide against the risk while litigation was ongoing. A £27m repayment supplement provision and £118m taxation provision related to the case have subsequently been released and treated as exceptional.

 

5        Net finance income/(costs)

 

£ millions	2013/14	2012/13 (restated)
Bank overdrafts and bank loans	(3)	(8)
Medium Term Notes and other fixed term debt	(3)	(7)
Finance leases	(4)	(4)
Financing fair value remeasurements	(2)	2
Capitalised interest	-	1
Finance costs	(12)	(16)
Cash and cash equivalents	6	15
Net interest income on defined benefit pension schemes	2	-
Kesa demerger French tax case - repayment supplement income (note 4)	27	-
Finance income	35	15
Net finance income/(costs)	23	(1)

 

6        Income tax expense

 

£ millions	2013/14	2012/13
UK corporation tax
Current tax on profits for the year	47	47
Adjustments in respect of prior years	(7)	(13)
	40	34
Overseas tax
Current tax on profits for the year	131	128
Kesa demerger French tax case (note 4)	(118)	-
Other adjustments in respect of prior years	(11)	(54)
	2	74
Deferred tax
Current year	16	18
Adjustments in respect of prior years	-	5
Adjustments in respect of changes in tax rates	(9)	(4)
	7	19
Income tax expense	49	127

 

The effective rate of tax on profit before exceptional items and excluding prior year tax adjustments and the impact of changes in tax rates on deferred tax is 26% (2012/13: 27%). Tax on exceptional items for the year is a credit of £114m, £118m of which relates to prior year items. In 2012/13 tax on exceptional items was a credit of £1m, with no amount relating to prior year items.

7          Earnings per share

 

		2013/14			2012/13
	Earnings	Weighted average number of shares	Earnings per share	Earnings	Weighted average number of shares	Earnings per share
	£ millions	millions	pence	£ millions	millions	pence
Basic earnings per share	709	2,363	30.0	564	2,339	24.1
Effect of dilutive share options		19	(0.3)		34	(0.3)
Diluted earnings per share	709	2,382	29.7	564	2,373	23.8
Basic earnings per share	709	2,363	30.0	564	2,339	24.1
Exceptional items before tax	(17)		(0.7)	26		1.1
Tax on exceptional and prior year items	(141)		(6.0)	(67)		(2.8)
Financing fair value remeasurements	2		0.1	(2)		(0.1)
Tax on financing fair value remeasurements	(1)		-	1		-
Adjusted basic earnings per share	552	2,363	23.4	522	2,339	22.3
Diluted earnings per share	709	2,382	29.7	564	2,373	23.8
Exceptional items before tax	(17)		(0.7)	26		1.1
Tax on exceptional and prior year items	(141)		(5.9)	(67)		(2.8)
Financing fair value remeasurements	2		0.1	(2)		(0.1)
Tax on financing fair value remeasurements	(1)		-	1		-
Adjusted diluted earnings per share	552	2,382	23.2	522	2,373	22.0

 

Basic earnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number of shares in issue during the year, excluding those held in the Employee Share Ownership Plan Trust ('ESOP') which for the purpose of this calculation are treated as cancelled.

 

For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential ordinary shares. These represent share options granted to employees where both the exercise price is less than the average market price of the Company's shares during the year and any related performance conditions have been met.

 

8          Dividends

 

£ millions	2013/14	2012/13
Dividends to equity shareholders of the Company
Final dividend for the year ended 2 February 2013 of 6.37p per share (28 January 2012: 6.37p per share)	150	148
Interim dividend for the year ended 1 February 2014 of 3.12p per share (2 February 2013: 3.09p per share)	74	73
	224	221

 

The proposed final dividend for the year ended 1 February 2014 of 6.78p per share is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability.

 9            Post-employment benefits

 

	2013/14			2012/13 (restated)
£ millions	UK	Other	Total	UK	Other	Total
Surplus/(deficit) in scheme at beginning of year	71	(71)	-	25	(40)	(15)
Current service cost	(2)	(7)	(9)	(13)	(4)	(17)
Administration costs	(3)	-	(3)	(3)	-	(3)
Curtailment gain	-	-	-	27	-	27
Net interest income/(expense)	4	(2)	2	2	(2)	-
Net actuarial (losses)/gains	(131)	4	(127)	(7)	(22)	(29)
Contributions paid by employer	32	1	33	40	1	41
Exchange differences	-	4	4	-	(4)	(4)
(Deficit)/surplus in scheme at end of year	(29)	(71)	(100)	71	(71)	-
Present value of defined benefit obligations	(2,135)	(92)	(2,227)	(1,994)	(93)	(2,087)
Fair value of scheme assets	2,106	21	2,127	2,065	22	2,087
(Deficit)/surplus in scheme	(29)	(71)	(100)	71	(71)	-

 

The assumptions used in calculating the costs and obligations of the Group's defined benefit pension schemes are set by the Directors after consultation with independent professionally qualified actuaries. The assumptions are based on the conditions at the time and changes in these assumptions can lead to significant movements in the estimated obligations, as illustrated in the sensitivity analysis.

 

A key assumption in valuing the pension obligations is the discount rate. Accounting standards require this to be set based on market yields on high quality corporate bonds at the balance sheet date. The UK scheme discount rate is based on the yield on the iBoxx over 15 year AA-rated Sterling corporate bond index adjusted for the difference in term between iBoxx and scheme liabilities. The principal financial assumptions for the UK scheme are as follows:

 

Annual % rate	2013/14	2012/13
Discount rate	4.4	4.6
Price inflation	3.3	3.3
Rate of pension increases	3.1	3.3

 

For the UK scheme, the mortality assumptions used in the actuarial valuations have been selected with regard to the characteristics and experience of the membership of the scheme from 2010 to 2013. The assumptions for life expectancy of UK scheme members are as follows:

 

Years	2013/14		2012/13	2010 funding valuation
Age to which current pensioners are expected to live (60 now)
- Male		86.7	86.7	86.4
- Female		87.3	87.4	87.1
Age to which future pensioners are expected to live (60 in 15 years' time)
- Male		87.4	87.4	87.1
- Female		88.6	89.0	88.7

 

The following sensitivity analysis for the UK scheme shows the estimated impact on the obligation resulting from changes to key actuarial assumptions, whilst holding all other assumptions constant.

 

Assumption	Change in assumption	Impact on defined benefit obligation
Discount rate	Increase/decrease by 0.1%	Decrease/increase by £43m
Price inflation	Increase/decrease by 0.1%	Increase/decrease by £38m
Rate of pension increases	Increase/decrease by 0.1%	Increase/decrease by £38m
Mortality	Increase in life expectancy by one year	Increase by £68m

 

10       Cash generated by operations

 

£ millions	2013/14	2012/13 (restated)
Operating profit	736	692
Share of post-tax results of joint ventures and associates	(8)	(20)
Depreciation and amortisation	261	248
Impairment losses	2	8
Loss on disposal of property, plant and equipment, investment property and intangible assets	1	5
Share-based compensation charge	7	9
Increase in inventories	(31)	(191)
Increase in trade and other receivables	(60)	(6)
Increase in trade and other payables	118	19
Movement in provisions	(29)	14
Movement in post-employment benefits	(21)	(48)
Cash generated by operations	976	730

 

11        Net cash

 

£ millions	2013/14	2012/13
Cash and cash equivalents	535	398
Bank overdrafts	(1)	-
Cash and cash equivalents and bank overdrafts	534	398
Bank loans	(14)	(68)
Medium Term Notes and other fixed term debt	(247)	(298)
Financing derivatives	27	71
Finance leases	(62)	(65)
Net cash	238	38
£ millions	2013/14	2012/13
Net cash/(debt) at beginning of year	38	(88)
Net increase/(decrease) in cash and cash equivalents and bank overdrafts	153	(106)
Repayment of bank loans	89	31
Repayment of Medium Term Notes and other fixed term debt	33	162
Receipt on financing derivatives	(6)	-
Capital element of finance lease rental payments	13	12
Cash flow movement in net cash	282	99
Borrowings acquired	(35)	-
Exchange differences and other non-cash movements	(47)	27
Net cash at end of year	238	38

 

12        Post balance sheet events

 

On 24 March 2014 Kingfisher agreed to sell all the shares it holds in Hornbach Holding AG and Hornbach-Baumarkt AG which together formed its 21.2% stake in Hornbach for approximately £195m.