Marks and Spencer 1998 Annual Report Download - page 54

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The results for the year comprise store sales and related costs for the 52 weeks to 28 March 1998 (last year 52 weeks to 29 March
1997). All other activities are for the year to 31 March 1998.
A CLASSES OF BUSINESS
The Group has two classes of business: Retailing and Financial Services.
Retailing: Turnover represents goods sold to customers outside the Group, less returns and sales tax es.
Financial Services: Turnover represents the interest and other income attributable to the Financial Services companies and the Captive
insurance company and arises wholly within the United Kingdom and the Channel Islands.
TURNOVER OPERATING PROFIT OPERATING A SSETS
1998 1997 1998 1997 1998 1997
£m £m £m £m £m £m
Retailing 7,968.5 7,625.8 1,004.6 962.2 3,979.1 3,243.6
Before exceptional operating income 951.4 962.2
Exceptional operating income (see note 3) 53.2 Ð
Financial Services( 1) 274.8 216.1 89.4 75.7 302.8 235.0
Total operating activities 8,243.3 7,841.9 1,094.0 1,037.9 4,281.9 3,478.6
Add: ex cess interest charged to cost of sales
of Financial Services( 1) 22.7 Ð
Total operating profit 1,116.7 1,037.9
Loss on sale of proper ty and other fix ed assets (2.8) (1.8)
Net interest income 54.1 65.9
Profit on ordinary activities before taxation 1,168.0 1,102.0
Unallocated assets 803.0 1,069.4
Net assets 5,084.9 4,548.0
B GEOGRAPHICAL SEGMENTS(2) TURNOVER OPERATING PROFIT OPERATING A SSETS
1998 1997 1998 1997 1998 1997
£m £m £m £m £m £m
United Kingdom
Retailing(3) 6,695.8 6,349.5 936.7 870.8 3,420.2 2,755.9
Before exceptional operating income 883.5 870.8
Exceptional operating income (see note 3) 53.2 Ð
Financial Services( 1) 274.8 216.1 89.4 75.7 302.8 235.0
6,970.6 6,565.6 1,026.1 946.5 3,723.0 2,990.9
Europe (ex cluding UK)( 4) 538.2 551.5 32.8 37.7 371.2 324.9
The A mericas 606.2 580.0 16.8 21.0 160.0 152.9
Far East(4) 128.3 144.8 18.3 32.7 27.7 9.9
Total operating activities 8,243.3 7,841.9 1,094.0 1,037.9 4,281.9 3,478.6
Add: ex cess interest charged to cost of sales
of Financial Services( 1) 22.7 Ð
Total operating profit 1,116.7 1,037.9
(1) F
inancial Services operating profit is stated after charging £81.5m (last year £59.6m) of interest to cost of sales. This interest
represents
the cost of funding the Financial Ser vices business as a separate segment, including both intra group interest and third
party funding.
The amount of third par ty interest payable by the Group amounted to £58.8m (last year £60.1m) (see note 4). Intra group interest of
£22.7m (last year £nil), being the ex cess of third party interest payable has been added back in the segmental analysis to arrive at
total operating profit.
2 SEGMENTAL INFORMATION
1 TRADING PERIOD
NO TES TO TH E FIN AN CIAL STATEM EN TS
52