Financial Review

Summary income statement
for the 52 weeks to 24 March 2007		 2007 2006 % change
Continuing operations      
Sales (inc VAT)      
Retailing – Supermarkets and Convenience
 18,227 16,987 7.3
Financial services – Sainsbury’s Bank1
 291 330 (11.8)
Total sales (inc VAT) 18,518 17,317 6.9
Sales (ex VAT)      
Retailing – Supermarkets and Convenience 16,860 15,731 7.2
Financial services – Sainsbury’s Bank1 291 330 (11.8)
Total sales (ex VAT) 17,151 16,061 6.8
Underlying operating profit      
Retailing – Supermarkets and Convenience 429 352 21.9
Financial services – Sainsbury’s Bank1 2 (10) 120.0
Total underlying operating profit 431 342 26.0
Underlying net finance costs2 (51) (75) 32.0
Underlying profit before tax 380 267 42.3
Business Review operating costs – (51) n/a
IT insourcing costs – (63) n/a
Debt restructuring costs – (38) n/a
Profit on sale of properties 7 1 600.0
Profit on part disposal of Sainsbury’s Bank 10 – n/a
Past service gains on defined benefit schemes 72 – n/a
Financing fair value movements 8 (12) 166.7
Profit before tax 477 104 358.7
Income tax expense (153) (46) (232.6)
Profit for the financial year 324 58 458.6
Underlying basic earnings per share 14.7p 10.5p 40.0
Basic earnings per share 19.2p 3.8p 405.3
Proposed dividend per share 9.75p 8.0p 21.9
  1. Sainsbury’s Bank has been fully consolidated until the Group sold five per cent shareholding in February; thereafter it has been equity accounted as a joint venture.
  2. Net finance costs pre financing fair value movements (2006: pre financing fair value movements and debt restructuring costs).