REG - Kingfisher PLC - Final Results (Part 2 of 2) <Origin Href="QuoteRef">KGF.L</Origin> - Part 2

KingfisherAnnouncement

23/03/2016 08:17

- Part 2: For the preceding part double click  ID:nRSW9667Sa 

                                                 730      561      
 Bank overdrafts                                                                                              (76)     (91)     
 Cash and cash equivalents and bank overdrafts                                                                654      470      
 Short-term deposits                                                                                          70       48       
 Bank loans                                                                                                   (10)     (11)     
 Fixed term debt                                                                                              (185)    (183)    
 Financing derivatives                                                                                        63       57       
 Finance leases                                                                                               (46)     (52)     
 Net cash                                                                                                     546      329      
                                                                                                                                
 £ millions                                                                                                   2015/16  2014/15  
 Net cash at beginning of year                                                                                329      238      
 Net increase in cash and cash equivalents and bank overdrafts, includingamounts classified as held for sale  127      55       
 Increase in short-term deposits                                                                              22       48       
 Repayment of bank loans                                                                                      1        2        
 Repayment of fixed term debt                                                                                 -        73       
 Payment on financing derivatives                                                                             -        9        
 Capital element of finance lease rental payments                                                             13       14       
 Cash flow movement in net cash                                                                               163      201      
 Adjustment for cash classified as held for sale (B&Q China)                                                  57       (57)     
 Exchange differences and other non-cash movements                                                            (3)      (53)     
 Net cash at end of year                                                                                      546      329      
                                                                                                                                  
 
 
12        Disposals 
 
On 30 April 2015 Wumei Holdings Inc acquired a controlling 70% stake in the
B&Q China business from the Group for a gross cash consideration of £140m, and
a £12m deposit received in the prior year was repaid. 
 
As part of the terms of the transaction, Kingfisher had the option from 1 May
2017, or sooner where agreed by both parties, to require Wumei Holdings Inc to
acquire the Group's remaining 30% interest for a fixed price of the Sterling
equivalent of RMB 582m (£62 million at 31 January 2016). This option was
exercised on 23 March 2016. The transaction is subject to regulatory approval
and, if approved, is expected to close later this year. 
 
The profit on disposal of the Group's controlling 70% stake in B&Q China of
£143m is analysed as follows: 
 
 £ millions                                                                 
 Proceeds (net of disposal costs paid of £6m)                         134   
 Cash disposed                                                        (32)  
 Net disposal proceeds received                                       102   
 Fair value at date of disposal of 30% interest retained              60    
                                                                      162   
 Net assets disposed excluding cash (see below)                       (32)  
 Non-controlling interests disposed                                   10    
 Currency translation gains transferred from translation reserve      3     
 Exceptional profit on disposal                                       143   
                                                                                
 
 
 £ millions                                                      
 Property, plant and equipment                            150    
 Inventories, trade and other receivables/(payables)      (108)  
 Provisions                                               (3)    
 Deferred tax liabilities                                 (9)    
 Other net assets                                         2      
 Net assets disposed excluding cash                       32     
                                                                     
 
 
The Group did not have the ability to exert significant influence on the B&Q
China operations, for example, as part of the terms agreed with Wumei Holdings
Inc, the Group did not have the right to appoint directors to the board. The
remaining 30% B&Q China investment has therefore been classified as a
financial asset and not as an associate, with no share of B&Q China's results
being recognised in the income statement after the disposal date. Included
within the profit on disposal is a gain of £44m attributable to measuring this
retained 30% investment at fair value. The B&Q China business had been
classified as a disposal group held for sale from 22 December 2014 (the date
of announcement of the transaction agreement) up to the 30 April 2015 disposal
date. Accordingly, depreciation of £4m was not charged with respect to B&Q
China during the year. 
 
In April 2015 the Group completed the sale of a property company for proceeds
of £18m and a profit of £16m. At disposal, the freehold properties had a net
book value of £6m and £4m of currency translation gains were transferred from
the translation reserve. In January 2016 the Group completed the sale of a UK
company for proceeds of £nil and a loss of £3m. At disposal, the company had
goodwill of £2m and other intangible assets of £1m. 
 
In the prior year the Group received proceeds of E236m (£198m) following the
sale of its 21% stake in Hornbach in March 2014. 
 
13        Post balance sheet events 
 
On 23 March 2016 Kingfisher exercised its option to dispose of its 30%
interest in the B&Q China business to Wumei Holdings Inc - refer to note 12
for further details. 
 
This information is provided by RNS
The company news service from the London Stock Exchange