Marks and Spencer 2001 Annual Report Download - page 26

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26 Marks and Spencer p.l.c.
4. Exceptional items
A Exceptional operating charges 2001 2000
£m £m
UK restructuring costs1(26.5) (63.3)
European restructuring costs2–(8.7)
Total exceptional operating charges (26.5) (72.0)
1The £26.5m is in respect of the closure of the ‘Direct‘ catalogue business (£16.5m) and the reduction of roles at the Group’s head office (£10.0m). The £63.3m
charge last year was in respect of the restructuring of UK Retail into customer business units, the rationalisation of store management and the refocusing of
existing store roles to customer facing activities, and the closure of two distribution centres.
2The European restructuring costs last year were in respect of store closures in France and Germany.
B Loss on sale of property and other fixed assets 2001 2000
£m £m
Disposal of European stores1–(8.3)
Provision for loss on ‘Direct’ assets2(19.0) –
Loss on sale of investment properties3–(16.1)
Other asset disposals4(64.2) 2.1
Loss on sale of property and other fixed assets (83.2) (22.3)
1The loss of £8.3m last year relates to European store closures. Including the restructuring cost of £8.7m disclosed in note 4A above, this gave rise to total
closure costs of £17.0m.
2Including the restructuring cost of £16.5m disclosed in note 4A above, this gives rise to total closure costs for the ‘Direct’ catalogue business of £35.5m.
3The loss on sale of investment properties last year was in respect of the disposal of The Gyle shopping centre and a property in Newcastle.
4Other asset disposals mainly relates to the closure of UK Stores, £40.2m of which relates to satellite stores and was announced at the half year.
C Loss on sale/termination of operations 2001 2000
£m £m
Loss on sale of Splendour.com Ltd (1.7) –
Loss on termination of Canadian operations –(45.4)
Loss on sale/termination of operations (1.7) (45.4)
The loss on sale/termination of operations is stated after charging £1.0m of goodwill (last year £24.4m).
D Provision for loss on operations to be discontinued 2001 2000
£m £m
Net closure costs (225.3) –
Goodwill previously credited to reserves 1.3 –
Provision for loss on operations to be discontinued (224.0) –
The provision for loss on operations to be discontinued represents the expected cost of the intended closure of the Group’s
Continental European subsidiaries. Net closure costs include provision for future trading losses, losses on disposal of fixed
assets, property exit costs and redundancy costs.
5. Net interest income 2001 2000
£m £m £m £m
Bank and other interest income 302.6 309.3
Less: amounts included in turnover of Financial Services (288.7) (293.2)
13.9 16.1
Interest expenditure (107.4) (107.4)
Less: interest charged to cost of sales of Financial Services 115.3 105.5
Intra group interest charged to cost of sales of Financial Services (see note 2) (7.9) –
–(1.9)
Net interest income 13.9 14.2
Interest expenditure comprises:
Amounts repayable within five years:
Bank loans, overdrafts and other borrowings (33.2) (33.2)
Medium term notes (73.0) (73.8)
(106.2) (107.0)
Amounts repayable after five years:
Medium term notes (1.2) (0.4)
(107.4) (107.4)
Notes to the financial statements