WWT from Tesco site20 Sep 2017 17:35
Net debt (excluding Tesco Bank) reduced by £1.4bn to £(3.7)bn, as our retail operating cash flow and property and business disposal proceeds were greater than capital expenditure and other charges.
We have a strong funding and liquidity profile underpinned by £4.4bn committed facilities and our key credit metrics (fixed charge cover, net debt/EBITDA and total indebtedness ratio) have improved over the year.
Discounted operating lease commitments The reduction in discounted operating lease commitments includes a benefit from the buybacks we have completed in the UK.In the year,
we regained sole ownership of 16 superstores from a number of different vendors, resulting in an annual rent saving
of £22m.
Pension
The IAS 19 pension deficit measure, which relates to our closed UK defined benefit scheme, increased by £(2.9)bn to £(5.5)bn due to the reduction in bond yields. Despite this increase in the IAS 19 measure of our liabilities, the actual pension payments that are payable to members in the future have not changed.
During the year, we completed a de-risking programme which has reduced the future volatility of the scheme’s long-term funding.
At the last triennial valuation, the Trustee and the Company agreed a long-term funding plan where the Company is paying contributions of £270m a year to the UK defined benefit scheme. The next triennial actuarial valuation is effective as at 31 March 2017 and work is already underway. The Trustee is aiming to conclude the valuation as soon as is reasonably possible.