Marks and Spencer 2000 Annual Report Download - page 28

2. SEGMENTAL IN FORM ATION (continued)
(2) The geographical segments disclose turnover and operating profit by destination and reflect management responsibility. Following
the closure of the Canadian operations and a realignment of management responsibility, franchise turnover and operating profits
previously included within the Americas are now included within Europe. Comparatives have been restated accordingly.
(3) UK Retail turnover including VAT comprises clothing, footwear and gifts £3,948.7m (last year £4,196.0m); home furnishings
£319.1m (last year £308.0m) and foods £2,880.4m (last year £2,787.6m). VAT on UK Retail turnover was £665.5m (last year
£690.5m).
(4) Operating profit includes pre-opening costs of £2.0m (last year £14.4m) for Europe and £nil (last year £0.1m) for Far East.
(5) Turnover originates in the following geographical segments: United Kingdom £6,990.4m (last year £7,082.2m); Europe £436.0m
(last year £440.5m); The Americas £691.4m (last year £629.5m) and Far East £77.7m (last year £71.8m).
(6) The value of goods exported from the UK, including shipments to international subsidiaries, amounted to £460.2m (last year
£440.2m).
Turnover and operating profits for the Americas and Far East comprise: TURNOVER OPERATING PROFIT
2000 1999 2000 1999
£m £m £m £m
The Americas
Brooks Brothers (including Japan) 395.5 345.9 7.9 12.4
Kings Super Markets 273.7 245.5 11.1 10.0
Corporate expenses ––(2.6) (2.0)
669.2 591.4 16.4 20.4
M&S Canada 22.2 38.1 –(4.7)
691.4 629.5 16.4 15.7
Far East
Stores 101.2 90.8 (3.2) (14.5)
Other(1) ––(0.1) 11.0
101.2 90.8 (3.3) (3.5)
(1) The profits generated from sourcing merchandise and technological services in Hong Kong, together with the costs of
research into new markets in the region, are grouped within Far East under ‘Other’. Due to changes affecting sourcing
from the Far East, sourcing income for the year has fallen by £12.7m compared to last year, with a corresponding reduction
in UK Retail operating costs.
The results of international subsidiaries have been translated using average rates of exchange ruling during the year. The movements
in exchange rates used for translation, compared to the same period last year, have reduced international sales (excluding Canada)
by £5.7m. The effect on the results of international operations is not significant.
3. OPERATING PROFIT 2000 1999
BEFORE BEFORE
EXCEPTIONAL EXCEPTIONAL EXCEPTIONAL EXCEPTIONAL
CHARGES CHARGES TOTAL CHARGES CHARGES TOTAL
£m £m £m £m £m £m
Turnover 8,195.5 – 8,195.5 8,224.0 – 8,224.0
Cost of sales (5,402.8) – (5,402.8) (5,450.7) – (5,450.7)
Gross profit 2,792.7 – 2,792.7 2,773.3 – 2,773.3
Employee costs (see note 10) 1,096.2 68.2 1,164.4 1,083.4 24.5 1,107.9
Occupancy costs 287.8 – 287.8 288.3 – 288.3
Repairs, renewals and maintenance of fixed assets 89.5 – 89.5 103.6 – 103.6
Depreciation 261.6 – 261.6 236.4 64.0 300.4
Other costs(1) 514.6 3.8 518.4 461.1 – 461.1
Total net operating expenses(2) (2,249.7) (72.0) (2,321.7) (2,172.8) (88.5) (2,261.3)
Operating profit 543.0 (72.0) 471.0 600.5 (88.5) 512.0
The directors consider that the nature of the business is such that the analysis of expenses shown above is more informative than that
set out in the formats of the Companies Act 1985.
26 Marks and Spencer p.l.c.
Notes to the financial statements