Marks and Spencer 2001 Annual Report Download - page 25

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2. Segmental information (continued)
Turnover and operating profit for North America and Europe comprise: Turnover Operating profit
2001 2000 2001 2000
£m £m £m £m
North America
Brooks Brothers (including Japan) 448.1 395.5 20.2 7.9
Kings Super Markets 313.1 273.7 11.9 11.1
Corporate expenses ––(0.1) (2.6)
761.2 669.2 32.0 16.4
M&S Canada –22.2 ––
761.2 691.4 32.0 16.4
Europe
Continental Europe 285.0 294.3 (34.0) (33.5)
Other European operations1263.3 261.3 22.6 18.7
548.3 555.6 (11.4) (14.8)
1Other European operations include the Republic of Ireland and franchises.
The results of international subsidiaries have been translated using weighted average rates of exchange ruling during the year.
The movements in exchange rates used for translation, compared to the same period last year, have increased international
sales (excluding Canada) by £57.4m. The effect on international operating profit is not significant.
3. Operating profit 2001 2000
Before Before
exceptional Exceptional exceptional Exceptional
charges charges Total charges charges Total
£m £m £m £m £m £m
Turnover 8,075.7 – 8,075.7 8,195.5 – 8,195.5
Cost of sales (5,237.2) – (5,237.2) (5,402.8) – (5,402.8)
Gross profit 2,838.5 – 2,838.5 2,792.7 – 2,792.7
Employee costs (see note 10) 1,100.8 17.0 1,117.8 1,096.2 68.2 1,164.4
Occupancy costs 311.5 – 311.5 287.8 – 287.8
Repairs, renewals and maintenance of fixed assets 91.2 – 91.2 89.5 – 89.5
Depreciation 275.9 – 275.9 261.6 – 261.6
Other costs1592.1 9.5 601.6 514.6 3.8 518.4
Total net operating expenses2(2,371.5) (26.5) (2,398.0) (2,249.7) (72.0) (2,321.7)
Operating profit 467.0 (26.5) 440.5 543.0 (72.0) 471.0
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.
1Included in ‘Other costs’ is the remuneration to the auditors for audit and non-audit services as follows:
The Group The Company
2001 2000 2001 2000
£m £m £m £m
Audit fees 1.1 1.1 0.5 0.4
Non-audit services 2.1 2.8 1.5 2.2
Fees paid for non-audit services are for taxation advice, corporate finance and consulting services.
2Included in ‘Total net operating expenses’ are rentals under operating leases, comprising £4.5m for hire of plant and machinery (last year £2.3m) and £124.1m
of other rental costs (last year £123.4m).
www.marksandspencer.com 25