52 weeks ended 22 February 1997					Note		1997 £m	1996 £m
____________________________________________________________________					_______		_______________
Net cash inflow from operating activities					30		1,219	1,046
Returns on investments and servicing of finance
Interest received							44	61
Interest paid							(84)	(125)
Interest element of finance lease rental payments							(7)	(9)
							_____________
Net cash outflow from returns on investments and servicing of finance							(47)	(73)
Taxation
Corporation tax paid (including advance corporation tax)							(228)	(182)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets							(703)	(624)
Receipts from sale of fixed assets							91	51
Decrease/(increase) in fixed asset investments							12	(9)
							_____________
Net cash outflow from capital expenditure and financial investment							(600)	(582)
Acquisitions
Purchase of subsidiary undertakings					31		(112)	(30)
Net cash acquired with subsidiary							3	-
Purchase of interest in joint venture							(17)	-
							_____________
Net cash outflow from acquisitions							(126)	(30)
Equity dividends paid							(194)	(172)
							_____________
Cash inflow before use of liquid resources and financing							24	7
Management of liquid resources
(Increase)/decrease in short term deposits							(29)	77
Financing
Ordinary shares issued for cash							31	22
Redemption of E.C.S.C. loans 1996							(74)	-
Redemption of 1/8% deep discount bonds							-	(50)
Increase/(decrease) in other loans							60	(52)
Capital element of finance leases repaid							(18)	(9)
							_____________
Net cash outflow from financing							(1)	(89)
Decrease in cash in the period							(6)	(5)
							_____________
____________________________________________________________________					_______		_______________
Reconciliation of net cash flow to movement in net debt
Decrease in cash in the period							(6)	(5)
Cash outflow from decrease in debt and lease financing							32	111
Conversion of capital bonds							-	200
Cash used to increase/(decrease) liquid resources							29	(77)
Amortisation of 4% unsecured deep discount loan stock							(3)	(2)
Foreign exchange differences							12	-
							_____________
Decrease in net debt					32		64	227
Net debt at 24 February 1996							(813)	(1,040)
							_____________
Net debt at 22 February 1997							(749)	(813)
							_____________
Accounting policies and notes forming part of these financial statements can be viewed.