Marks and Spencer 1998 Annual Report Download - page 7

development of a very wide range of products.
Shareholders will wish to join me in congratulating
Andrew Stone on his elevation to the peerage.
Following a review of the Group’s capital
structure, the Board proposes to seek general
authority from shareholders at the Annual General
Meeting for the Company to make market
purchases of its own shares. It has resolved to
suspend the current scrip dividend scheme and to
introduce a dividend reinvestment plan for
shareholders. Further information can be found in
my letter accompanying this report.
The Board notes the Final Report of the
Hampel Committee and the draft Combined Code
on Corporate Governance which were published
earlier this year and awaits the resultant
amendments to the Stock Exchange Listing Rules.
The Group has entered a period of bold
investment which will inevitably affect our profits
over the next 18 months. H owever, we have always
prudently managed our cash resources and, more
important, taken the long-term view when growing
your business. I am therefore confident that when
the current expansion programme is completed we
will remain as we are today the most profitable
retailer in Europe.
Sir Richard Greenbury
whatever their position, to contribute to the success
of the business. N VQ s are firmly established within
the Company as a key development and
motivational tool; we are now one of the major
participants in the N VQ process with many
thousands of our sales and operations staff qualified
in retail level 2. The UK Government’s Investors in
People scheme has been successfully adopted in two
of our stores and is now being extended to others as
well as to a large section of our head office.
I would like to pay tribute to our suppliers of
goods and services who have worked closely with
us in partnership to develop the business. O nce
again they have done an excellent job and their
continued investment and increased commitment to
supplying us augurs well for our combined futures.
The Group has always shown a high degree
of social responsibility. This is exemplified by our
commitment of over £10m to the communities in
which we operate and our approach to
environmental issues, both outlined on pages 28 to
31 of this report.
The Company’s H igh Court libel action
against Granada Television Limited in respect of its
World in Action programme has been successfully
concluded with an unreserved apology in open
court from Granada, together with £700,000 of
damages and costs. The Company’ s reputation for
integrity in all its activities is of paramount
importance and we will always take firm action to
protect that position.
Our business has become increasingly
complex, both operationally and in terms of
product. It was, therefore, the right time to change
the managing directors’ portfolios so that they can
gain experience across other areas of the Company.
This has long been the practice at Board level and is
particularly appropriate in the light of the
challenges we face in the years ahead.
Don Trangmar retired at the end of the year
after 32 years’ service, including 14 as a director.
On behalf of the Board, I would like to thank him
for his substantial contribution, particularly in the
WE ENCOURAGE ALL MEMBERS OF
THE COMPANY TO CONTRIBUTE TO THE
SUCCESS OF THE BUSINESS
MA RKS A ND SPENCER p.l.c. 5