Marks and Spencer 2006 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2006 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

62 Marks and Spencer Group plc
Notes to the financial statements continued
6 INCOME TAX EXPENSE continued
B Taxation reconciliation
2006 2005
£m £m
Profit before tax 745.7 505.1
Taxation at the standard UK corporation tax rate of 30% (last year 30%) 223.7 151.5
Depreciation and charges on non-qualifying fixed assets 10.2 10.8
Share schemes –(4.9)
Other income and expenses not taxable or deductible (2.7) 10.8
Overseas profits taxed at lower rates (3.8) (7.3)
Exceptional items –(3.7)
Adjustments to tax charge in respect of prior periods (2.3) (7.1)
Total taxation charge 225.1 150.1
The effective tax rate was 30.2% (last year 29.7%). Included in the tax charge for last year is a credit of £19.1m which is attributable
to exceptional operating charges.
7 DISCONTINUED OPERATIONS
On 31 March 2006, the Group announced the sale of Kings Super Markets Inc to a US investor group for $61.5m excluding cash in
the business at the date of disposal.
The profit after tax in the current year is entirely attributable to Kings Super Markets Inc (last year £3.9m). The balance of profit after
tax last year, together with the net gain on disposal is entirely attributable to the sale of Marks and Spencer Retail Financial Services
Holdings to HSBC Holdings plc completed on 9 November 2004.
A Profit from discontinued operations
2006 2005
£m £m
Revenue 228.2 451.8
Cost of sales (144.7) (235.7)
Gross profit 83.5 216.1
Net operating expenses (80.5) (180.4)
Net interest receivable/(payable) 0.2 (0.2)
Profit before tax 3.2 35.5
Taxation on results (0.7) (2.4)
Profit after tax 2.5 33.1
Gain on disposal of subsidiary net assets –199.0
Taxation –(0.9)
Net gain on disposal –198.1
Profit from discontinued operations 2.5 231.2
B Expenditure, depreciation and amortisation
The following items have been excluded from the segmental disclosures in note 2.
2006 2005
£m £m
Expenditure on property, plant and equipment 5.4 4.6
Expenditure on intangible assets –0.8
Depreciation 6.3 7.8
Amortisation –1.9