Marks and Spencer 2001 Annual Report Download - page 24

24 Marks and Spencer p.l.c.
1. Trading period
The results for the year comprise store sales and related costs for the 52 weeks to 31 March 2001 (last year 53 weeks to 1 April
2000). All other activities are for the year to 31 March 2001. All results are derived from continuing operations.
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 within the United Kingdom and the Channel Islands.
Turnover Operating profit Operating assets
2001 2000 2001 2000 2001 2000
£m £m £m £m £m £m
Retailing activities 7,712.6 7,830.9 336.3 355.1 4,389.4 4,494.5
Before exceptional operating charges 362.8 427.1
Exceptional operating charges (see note 4A) (26.5) (72.0)
Financial Services1,2 363.1 364.6 96.3 115.9 518.0 448.7
Total operating activities 8,075.7 8,195.5 432.6 471.0 4,907.4 4,943.2
Add: excess interest charged to cost of sales
of Financial Services27.9 –
Total operating profit 440.5 471.0
Loss on sale of property and other fixed assets (83.2) (22.3)
Loss on sale/termination of operations (1.7) (45.4)
Provision for loss on operations to be discontinued (224.0) –
Net interest income 13.9 14.2
Profit on ordinary activities before taxation 145.5 417.5
Unallocated net liabilities (246.4) (21.4)
Net assets 4,661.0 4,921.8
B Geographical split Turnover Operating profit Operating assets
2001 2000 2001 2000 2001 2000
£m £m £m £m £m £m
United Kingdom
Retail 6,293.0 6,482.7 308.3 356.8 3,757.1 3,905.2
Before exceptional operating charges 334.8 420.1
Exceptional operating charges (26.5) (63.3)
Financial Services1,2 363.1 364.6 96.3 115.9 518.0 448.7
6,656.1 6,847.3 404.6 472.7 4,275.1 4,353.9
International Retail
Europe (excluding UK) 548.3 555.6 (11.4) (14.8) 394.5 387.8
Before exceptional operating charges (11.4) (6.1)
Exceptional operating charges –(8.7)
North America 761.2 691.4 32.0 16.4 232.8 201.2
Far East 110.1 101.2 7.4 (3.3) 5.0 0.3
1,419.6 1,348.2 28.0 (1.7) 632.3 589.3
Total operating activities 8,075.7 8,195.5 432.6 471.0 4,907.4 4,943.2
Add: excess interest charged to cost of sales
of Financial Services27.9 –
Total operating profit 440.5 471.0
1Operating profit for Financial Services includes £16.2m of merchant fee income (last year £nil) arising on Marks & Spencer Chargecard transactions. This fee
is payable by UK Retail and has been deducted in arriving at UK Retail operating profit.
2Financial Services operating profit is stated after charging £115.3m (last year £105.5m) 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 £107.4m (last year £107.4m) (see note 5). Intra group interest of £7.9m (last year £nil), being the excess over third party interest
payable, has been added back in the segmental analysis to arrive at total operating profit.
3The geographical segments disclose turnover and operating profit by destination and reflect management responsibility.
4UK Retail turnover including VAT comprises clothing, footwear and gifts £3,649.5m (last year £3,939.0m); home £355.8m (last year £328.8m) and foods
£2,925.9m (last year £2,880.4m). VAT on UK Retail turnover was £638.2m (last year £665.5m). Since the last financial year, sales of certain lines have been
transferred from clothing, footwear and gifts to home. Comparatives for the last financial year have been restated accordingly.
5Operating profit includes pre-opening costs of £1.0m (last year £2.0m) for Europe.
6Turnover originates in the following geographical segments: United Kingdom £6,798.6m (last year £6,990.4m); Europe £435.5m (last year £436.0m);
North America £761.2m (last year £691.4m) and Far East £81.4m (last year £77.7m).
7The value of goods exported from the UK, including shipments to international subsidiaries, amounted to £436.0m (last year £460.2m).
Notes to the financial statements
24 Marks and Spencer p.l.c.24 Marks and Spencer p.l.c.