Tesco 2002 Annual Report Download - page 41

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TESCO PLC 39
NOTE 31 Related party transactions
During the year there were no material transactions or amounts owed or owing with any of the Group’s key management or members
of their close family.
During the year the Group traded with its 12 joint ventures: Shopping Centres Limited, BLT Properties Limited, Tesco BL Holdings Limited,Tesco
British Land Property Partnership, Tesco Personal Finance Group Limited, Tesco Home Shopping Limited, iVillage UK Limited, dunnhumby Limited,
The Nutri Centre Limited,Taiwan Charn Yang Developments Limited, Retail Property Company Limited and Tesco Card Services Limited. During the
year the Group also traded with its four associates: Broadfields Property Management Limited, Clarepharm Limited, GroceryWorks Holdings Inc. and
Hussman (Hungary) Kft.The main transactions during the year were:
i Equity funding of £26m (2001 – £34m) in joint ventures and £16m (2001 – nil) in associates.
ii The Group made loans to joint ventures of £27m (2001 – £16m), and has been repaid loans by joint ventures of £2m (2001 – £10m). Joint
ventures have loaned the Group nil (2001 – £2m).The Group has outstanding loan balances due from joint ventures of £68m (2001 – £43m)
and outstanding loan balances due to joint ventures of £2m (2001 – £2m) at 23 February 2002.
iii The Group made purchases of £43m (2001 – £36m) from joint ventures and associates.
iv The Group has charged joint ventures an amount totalling £26m (2001 – £21m) in respect of services, loan interest and assets transferred, of
which £3m (2001 – £2m) was outstanding at 23 February 2002.At the prior year end an amount of £1m relating to group relief was outstanding
(2002 – nil).
v In the prior year, the Group sold a property to BLT Properties Limited for £14m and acquired a property from BLT Properties Limited for £15m.
There were no transactions of this nature in the current year.
NOTE 32 Reconciliation of operating profit to net cash inflow from operating activities
2002 2001
£m £m
Operating profit 1,322 1,166
Depreciation and goodwill amortisation 534 476
Increase in goods held for resale (93) (174)
Decrease in development property 482
Increase in debtors (88) (72)
Increase in trade creditors 292 287
Increase in other creditors 67 172
Decrease in working capital (a) 182 295
Net cash inflow from operating activities 2,038 1,937
(a) The decrease in working capital includes the impact of translating foreign currency working capital movements at average exchange rates rather than year end
exchange rates.
NOTE 33 Analysis of changes in net debt
At 24 Feb Other non- Exchange At 23 Feb
2001 Cash flow cash changes movements 2002
£m £m £m £m £m
Cash at bank and in hand 279 163 – 3 445
Overdrafts (8) 8–––
271 171 – 3 445
Money market investments and deposits 255 (27) – (3) 225
Bank and other loans (1,381) 105 (200) 2 (1,474)
Finance leases (24) 24 (15) – (15)
Debt due within one year (1,405) 129 (215) 2 (1,489)
Bank and other loans (1,908) (1,021) 186 16 (2,727)
Finance leases (17) – 3 – (14)
Debt due after one year (1,925) (1,021) 189 16 (2,741)
(2,804) (748) (26) 18 (3,560)