Marks and Spencer 1999 Annual Report Download - page 26

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ANNUAL REPORT AND FIN ANCIAL STATEMENTS 1999
24
N OTES TO THE FIN AN CIAL STATEMEN TS
1.Trading period
The results for the year comprise store sales and related costs for the 52 weeks to • March 2000 (last year 52 weeks to 27 March 1999).
All other activities are for the year to 31 March 2000.
2. Segmental information
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 taxes.
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.
TURN O VER O PERATIN G PRO FIT O PERATIN G ASSETS
1999 1999
2000 1999 2000 As restated 2000 As restated
£m £m £m £m £m £m
Retailing 7,875.4 375.8 4,518.7
Before exceptional operating (charges)/income 464.3
Exceptional operating (charges)/income (see note 3) (88.5)
Financial Services(1) 348.6 110.7 388.7
Total operating activities 8,224.0 486.5 4,907.4
Add:excess interest charged to cost of sales
of Financial Services(1) 25.5
Total operating profit 512.0
Profit/(loss) on sale of property and other fixed assets 6.2
N et interest income 27.9
Profit on ordinary activities before taxation 546.1
Unallocated (liabilities)/assets (10.2)
Net assets 4,897.2
B GEOGRAPHICAL SEGMENTS(2)
TURN O VER O PERATIN G PRO FIT O PERATIN G ASSETS
1999 1999
2000 1999 2000 As restated 2000 As restated
£m £m £m £m £m £m
United Kingdom
Retail(3) 6,601.1 454.4 3,965.8
Before exceptional operating (charges)/income 478.9
Exceptional operating (charges)/income (see note 3) (24.5)
Financial Services(1) 348.6 110.7 388.7
6,949.7 565.1 4,354.5
Overseas Retail
Europe (excluding UK)(4) 552.1 (90.9) 354.1
Before exceptional operating charges (26.9)
Exceptional operating charges (see note 3) (64.0)
The Americas 631.4 15.8 192.2
Far East(4) 90.8 (3.5) 6.6
1,274.3 (78.6) 552.9
Total operating activities 8,224.0 486.5 4,907.4
Add:excess interest charged to cost of sales
of Financial Services(1) 25.5
Total operating profit 512.0
(1) Financial Services operating profit is stated after charging £• m (last year £102.3m) of interest to cost of sales.This interest represents the cost of
funding the Financial Services business as a separate segment, including both intra group interest and third party funding.The amount of third party
interest payable by the Group amounted to £• m (last year £76.8m) (see note 4). Intra group interest of £• m (last year £25.5m), being the excess of
third party interest payable has been added back in the segmental analysis to arrive at total operating profit.
(2) The geographical segments disclose turnover and operating profit by destination and reflect management responsibility.