Marks and Spencer 2002 Annual Report Download - page 34

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32 Marks and Spencer Group p.l.c.
Notes to the financial statements
3. Segmental information continued
B Geographical split
The geographical segments disclose turnover and operating profit by destination and reflect management
responsibility. Turnover Operating profit Operating assets
2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m
United Kingdom
Retail 6,575.2 6,293.0 505.2 308.3 3,445.6 3,757.1
Before exceptional operating charges 505.2 334.8
Exceptional operating charges –(26.5)
Financial Services1,2 350.8 363.1 84.2 96.3 576.7 518.0
6,926.0 6,656.1 589.4 404.6 4,022.3 4,275.1
International
Continuing operations 693.4 686.5 33.3 41.9 119.4 105.3
Discontinued operations 516.0 733.1 14.7 (13.9) (60.4) 329.3
1,209.4 1,419.6 48.0 28.0 59.0 434.6
Total operating activities 8,135.4 8,075.7 637.4 432.6 4,081.3 4,709.7
Add: excess interest charged to cost of sales
of Financial Services26.4 7.9
Total operating profit 643.8 440.5
1Operating profit for Financial Services includes £15.0m of merchant fee income (last year £16.2m) arising on Marks & Spencer
Chargecard transactions. This fee is payable by UK Retail and has been deducted in arriving at UK Retail operating profit.
2Financial Services operating profit is stated after charging £103.7m (last year £115.3m) of interest to cost of sales. This interest represents
the cost of funding the Financial Services business as a separate segment, including both intra-group interest and third party funding.
The amount of third party interest payable by the Group amounted to £116.9m (last year £107.4m) (see note 6). Intra-group interest of
£6.4m (last year £7.9m), being the excess over third party interest payable, has been added back in the segmental analysis to arrive at
total operating profit. The intra-group interest added back this year arose in the first half of the year when the interest charged to cost
of sales of Financial Services was greater than the interest payable for that period.
3UK Retail turnover including VAT comprises clothing, footwear and gifts £3,773.4m (last year £3,649.5m); home £373.3m (last year
£355.8m) and foods £3,093.5m (last year £2,925.9m). VAT on UK Retail turnover was £665.0m (last year £638.2m).
4Turnover from continuing operations originates in the following geographical segments: United Kingdom £7,055.9m (last year
£6,797.6m) and International £563.5m (last year £545.0m).
5The value of goods exported from the UK, including shipments to international subsidiaries, amounted to £329.8m (last year £436.0m).
Turnover and operating profit for discontinued operations comprise: Turnover Operating profit
2002 2001 2002 2001
£m £m £m £m
North America
Brooks Brothers (including Japan) 345.8 448.1 14.9 20.2
Corporate expenses ––(0.2) (0.1)
345.8 448.1 14.7 20.1
Continental Europe6170.2 285.0 –(34.0)
Total discontinued operations 516.0 733.1 14.7 (13.9)
6Operating profit for Continental Europe in 2002 is stated after utilising £42.5m of provisions, established last year as a provision for
trading losses.