Notes to the financial statements

26 Reconciliation of movements in equity

Group Called up
share
capital
£m		 Share
premium
account
£m		 Capital
redemption
and other
reserves
£m		 Retained
earnings
£m		 Equity
shareholders’
funds
£m		 Minority
interests
£m		 Total
equity
£m
At 26 March 2006 489 782 667 1,948 3,886 79 3,965
Profit for the year — — — 325 325 (1) 324
Dividends paid — — — (140) (140) — (140)
Share-based payment — — — 55 55 — 55
Part disposal of Sainsbury’s Bank — — — — — (78) (78)
Actuarial gains on defined benefit pension schemes — — 127 — 127 — 127
Available-for-sale financial assets              
fair value movements — — 17 — 17 — 17
B shares redemption — — 2 (2) — — —
Shares vested — — — 1 1 — 1
Allotted in respect of share option schemes 6 75 — (3) 78 — 78
At 24 March 2007 495 857 813 2,184 4,349 — 4,349
At 27 March 2005 620 761 634 2,012 4,027 85 4,112
IAS 32 and IAS 39 adjustments (133) 1 71 (17) (78) — (78)
Restated at 27 March 2005 487 762 705 1,995 3,949 85 4,034
Profit for the year — — — 64 64 (6) 58
Dividends paid — — — (131) (131) — (131)
Share-based payment — — — 28 28 — 28
Currency translation differences — — 2 — 2 — 2
Actuarial losses on defined benefit pension schemes — — (180) — (180) — (180)
Available-for-sale financial assets              
fair value movements — — 19 — 19 — 19
Cash flow hedges              
effective portion of fair value movements — — 1 — 1 — 1
transferred to income statement — — (1) — (1) — (1)
B shares redemption — — 121 (9) 112 — 112
Shares vested — — — 1 1 — 1
Allotted in respect of share option schemes 2 20 — — 22 — 22
At 25 March 2006 489 782 667 1,948 3,886 79 3,965
Company Called up share capital
£m		 Share premium account
£m		 Capital redemption reserve
£m		 Retained earnings
£m		 Total equity
£m
At 26 March 2006 489 782 668 1,692 3,631
Profit for the year — — — 190 190
Dividends paid — — — (140) (140)
B shares redemption — — 2 (2) —
Allotted in respect of share option schemes 6 75 — — 81
At 24 March 2007 495 857 670 1,740 3,762
At 27 March 2005 620 761 547 1,696 3,624
IAS 32 and IAS 39 adjustments (133) 1 — (17) (149)
Restated at 27 March 2005 487 762 547 1,679 3,475
Profit for the year — — — 153 153
Dividends paid — — — (131) (131)
B shares redemption — — 121 (9) 112
Allotted in respect of share option schemes 2 20 — — 22
At 25 March 2006 489 782 668 1,692 3,631

27 Notes to the cash flow statements

(a) Reconciliation of operating profit to cash generated from operations

  Group Company
Company 2007
£m		 2006
£m		 2007
£m		 2006
£m
Operating profit 520 229 6 48
Adjustments for        
Depreciation expense 479 449 2 3
Amortisation expense 21 21 — —
Profit on sale of properties (7) (1) (5) (50)
Profit on part disposal of Sainsbury’s Bank (10) — (11) —
Provision for diminution in value of investment — — 6 —
Foreign exchange differences 6 — — (30)
Share-based payments expense 38 23 — —
Operating cash flows before changes in working capital 1,047 721 (2) (29)
Changes in working capital        
Increase in inventories (12) (17) — —
(Increase)/decrease in current available-for-sale financial assets (45) 38 — —
(Increase)/decrease in trade and other receivables (50) 7 624 1,337
Decrease/(increase) in amounts due from Sainsbury’s Bank customers and other banks 188 (805) — —
Increase/(decrease) in trade and other payables 314 83 (788) 1,808
(Decrease)/increase in amounts due to Sainsbury’s Bank customers and other banks (198) 819 — —
Decrease in provisions and other liabilities1 (414) (66) — —
Cash generated from operations 830 780 (166) 3,116
  1. Includes £240 million (2006: £110 million) of cash paid into the defined benefit pension schemes (note 31).

(b) Cash and cash equivalents

For the purposes of the cash flow statements, cash and cash equivalents comprise the following:

  Group Company
Company 2007
£m		 2006
£m		 2007
£m		 2006
£m
Cash and cash equivalents
 1,128 1,028 523 411
Bank overdrafts (note 20)
 (363) (186) (259) (166)
  765 842 264 245