Marks and Spencer 1998 Annual Report Download - page 62

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C TANGIBLE FIXED ASSETS AT COST
Gerald Eve, Char tered Sur veyors, valued the CompanyÕs freehold and leasehold properties in the United Kingdom
as at 31 March 1982.
This valuation was on the basis of open market value for ex isting use. At 31 March 1988,
the directors, after consultation with Gerald
Eve, revalued those of the CompanyÕs proper ties which had been valued as at 31 March 1982 (ex cluding subsequent additions and
adjusted
for disposals). The directorsÕ valuation was incorporated into the financial statements at 31 March 1988.
The CompanyÕs freehold interests in investment proper ties have been valued at open market value as at 31 March 1998 by ex ternal
valuers, Gerald Eve, Chartered Sur veyors. The valuation attributed to the CompanyÕs investment interest in the Gyle Shopping Centre is
subject to
the lease to the Company of the Marks & Spencer store at a nominal fix ed rent until 2117 and the occupational leases of the other parts
of the centre. The valuations of the remaining investment proper ties are based on the apportionment of larger valuations to ex clude the
owner occupied Marks & Spencer store, ex cept for one property which was valued at the stage of its development reached by 31 March
1998.
If the CompanyÕs land and buildings had not been valued as set out above their net book value would have been:
1998 1997
£m £m
At valuation at 31 March 1975(1) 334.6 335.4
At cost 2,151.5 1,725.2
At 31 March 2,486.1 2,060.6
Accumulated depreciation 93.1 87.5
Net book value at 31 March 2,393.0 1,973.1
(1) The Company also valued its land and buildings in 1955 and in 1964. In the opinion of the directors unreasonable ex pense would be
incurred in obtaining the original costs of the assets valued in those years and in 1975.
D FIXTURES, FITTINGS AND EQUIPMENT
The Company does not maintain detailed records of cost and depreciation for fix tures, fittings and equipment. The accumulated cost
and depreciation figures represent reasonable estimates of the sums involved.
A INVESTMENTS THE GROUP THE COMPANY
Shares in Loans to
Joint Other Group Group Joint
venture
(1)(2)
investments
(3)
Total undertakings
(4)
undertakings venture
(1)
Total
£m £m £m £m £m £m £m
At 1 A pril 1997 21.0 15.6 36.6 314.7 39.5 17.4 371.6
Additions 0.4 30.7 31.1 ÐÐÐ –
Share of joint ventureÕs property revaluation 2.0 Ð 2.0 ÐÐÐ –
Repayment of loan Ð Ð –Ð (10.0) Ð (10.0)
At 31 March 1998 23.4 46.3 69.7 314.7 29.5 17.4 361.6
(1)
The joint venture represents a 50% interest in Hedge End Park Ltd, a property investment company. The par tner in the joint venture is
J Sainsbur y plc.
(2) The GroupÕs investment in the joint venture includes £11.3m (last year £11.3m) of loans and accumulated reser ves of £6.0m
(last year £3.6m).
(3) Other investments comprise listed securities held by a subsidiar y. The difference between their book value and market value is
negligible.
(4) Shares in Group undertakings of £314.7m (last year £314.7m) are stated after cumulative amounts written off of £543.6m
(last year £543.6m).
11 TANGIBLE FIXED ASSETS continued
12 FIXED ASSET INVESTMENTS
NO TES TO TH E FIN AN CIAL STATEM EN TS
60