Marks and Spencer 2002 Annual Report Download - page 52

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50 Marks and Spencer Group p.l.c.
Notes to the financial statements
28. Analysis of cash flows given in the cash flow statement Group
2002 2001
£m £m
A Exceptional operating cash flows
UK redundancy costs paid (30.0) (29.5)
European restructuring costs paid –(0.8)
Exceptional operating cash outflow (30.0) (30.3)
B Management of liquid resources
(Increase)/decrease in cash deposits treated as liquid resources (16.3) 135.5
Net sale/(purchase) of government securities 19.6 (67.5)
Net purchase of listed investments (36.8) (0.3)
Net (purchase)/sale of unlisted investments (0.3) 2.0
Net sale of unlisted investments on sale of business 4.7 –
Net decrease in short-term deposits –194.0
Cash (outflow)/inflow from (increase)/decrease in liquid resources (29.1) 263.7
C Financing
(Decrease)/increase in bank loans, overdrafts and commercial paper treated as financing (268.6) 76.0
Issue/(redemption) of medium term notes 977.5 (310.8)
Issue of securitised loan notes 319.4 –
Increase/(decrease) in other creditors treated as financing 3.4 (11.1)
Debt financing as shown in analysis of net debt (see note 30) 1,031.7 (245.9)
Purchase of own shares (52.0) (20.3)
Redemption of B shares (1,717.9) –
Issue/redemption expenses (9.3) –
Shares issued under employees’ share schemes 17.3 0.8
Net cash outflow from decrease in financing (730.2) (265.4)
29. Sale/closure of operations
A Sale of Brooks Brothers
As described in note 5D, the disposal of Brooks Brothers was completed on 29 December 2001 for a consideration of
£153.7m net of costs. £m
Net assets disposed of 162.2
Goodwill written back 368.2
Loss on disposal (376.7)
Disposal proceeds (net of costs) 153.7
Less net cash included in net assets sold (14.3)
Net cash flow from disposal 139.4
The business sold during the year contributed £71.6m to the Group’s net operating cash flows.
B Closure of Continental European operations
The closure of Continental European operations resulted in a net cash inflow for the period of £122.2m, after taking
into account proceeds from the sale of property and the costs of redundancy and other payments. £70.2m of
proceeds relating to the sale of stores in France to Galeries Lafayette is in the form of deferred consideration
and is not due to be received until March 2003.
The operations closed during the year generated a net operating cash outflow of £3.5m.