Tesco 2013 Annual Report Download - page 128

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124 Tesco PLC Annual Report and Financial Statements 2013
Note 33 Capital resources continued
The movement of tier 1 capital during the financial year is analysed as follows:
2013
£m
2012
£m
At beginning of the year 661 708
Share capital and share premium 45 112
Profit attributable to shareholders 158 65
Other reserves (1) 6
Ordinary dividends (105) (108)
50% of material holdings (11) –
Increase in intangible assets (60) (122)
At end of the year 687 661
During the year the Group revised the capital disclosure of the holding in its insurance regulated associate (Tesco Underwriting Limited). This change
reduced the tier 1 capital ratio in the previous year to 14.15% from 15.28%. There is no change in the risk asset ratio.
It is TPF’s policy to maintain a strong capital base, to expand it as appropriate and to utilise it efficiently throughout its activities to optimise the
return to shareholders while maintaining a prudent relationship between the capital base and the underlying risks of the business. In carrying out
this policy, TPF has regard to the supervisory requirements of the PRA. TPF has carried regulatory capital reserves in excess of its capital
requirements throughout the financial year.
Note 34 Leasing commitments
Finance lease commitments – Group as lessee
The Group has finance leases for various items of plant, equipment, fixtures and fittings. There are also a small number of buildings which are held
under finance leases. The fair value of the Group’s lease obligations approximate to their carrying value.
Future minimum lease payments under finance leases and hire purchase contracts, together with the present value of the net minimum lease
payments, are as follows:
Minimum lease payments
Present value of
minimum lease payments
2013
£m
2012
£m
2013
£m
2012
£m
Within one year 13 39 632
Greater than one year but less than five years 52 58 15 20
After five years 212 222 107 114
Total minimum lease payments 277 319 128 166
Less future finance charges (149) (153)
Present value of minimum lease payments 128 166
Analysed as:
Current finance lease payables 6 32
Non-current finance lease payables 122 134
128 166
Notes to the Group financial statements