Marks and Spencer 2006 Annual Report Download - page 63

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61Marks and Spencer Group plc
5 FINANCE COSTS
2006 2005
£m £m
Interest payable:
Interest payable on bank borrowings 4.2 43.3
Amortisation of issue costs of bank loan 2.3 1.5
Interest payable on syndicated bank facility 7.7 7.8
Interest payable on medium term notes 96.2 110.8
Interest payable on securitised loan notes 20.3 20.2
Interest payable on finance leases 2.3 2.3
Dividend on non-equity B shares 2.3 –
135.3 185.9
Less: amounts included in profit from discontinued operations1(0.4) (65.0)
Interest payable and similar charges 134.9 120.9
Interest receivable:
Bank and other interest receivable 13.4 169.9
Pension finance income (net) (see note 11E) 17.5 11.4
Fair value hedges20.2 –
31.1 181.3
Less: amounts included in profit from discontinued operations1(0.6) (153.4)
Interest receivable 30.5 27.9
Net finance costs 104.4 93.0
1Interest payable and receivable last year of £64.6m and £153.2m respectively relate to Financial Services. These were included within cost of sales and turnover
respectively and are therefore excluded from net interest within note 7.
2Represents a fair value gain on hedging instruments of £67.2m and a corresponding fair value loss on underlying medium term notes of £67.0m, which have been
designated into a hedging relationship.
Where applicable, interest payable amounts are shown net of their assigned interest rate derivative. The fair values of these
derivatives have been reported as a net figure under interest income.
6 INCOME TAX EXPENSE
A Taxation charge
2006 2005
£m £m
Current tax
UK corporation tax at 30% (last year 30%)
– current year 150.3 115.7
– prior years (2.0) (17.5)
148.3 98.2
Overseas current taxation 5.3 5.5
Total current taxation 153.6 103.7
Deferred tax (note 25)
– current year 71.8 36.0
– prior years (0.3) 10.4
Total deferred taxation 71.5 46.4
225.1 150.1