Marks and Spencer 2001 Annual Report Download - page 32

32 Marks and Spencer p.l.c.
13. Tangible fixed assets (continued)
B Investment properties
Freehold land and buildings include investment properties as follows: The Group The Company
£m £m
Cost or valuation
At 1 April 2000 54.5 54.5
Revaluation deficit (3.0) (3.0)
At 31 March 2001 51.5 51.5
C Tangible fixed assets at cost
Gerald Eve, Chartered Surveyors, valued the Company’s freehold and leasehold properties in the United Kingdom as at
31 March 1982. This valuation was on the basis of open market value for existing use. At 31 March 1988, the directors, after
consultation with Gerald Eve, revalued those of the Company’s properties which had been valued as at 31 March 1982
(excluding subsequent additions and adjusted for disposals). The directors’ valuation was incorporated into the financial
statements at 31 March 1988.
The Company’s freehold interests in three investment properties have been valued at open market value in accordance with
the RICS Appraisal and Valuation Manual as at 31 March 2001 by external valuers, Gerald Eve, Chartered Surveyors. The
valuations of these investment properties are based on the apportionment of larger valuations to exclude an owner occupied
Marks & Spencer store in each case. They exclude any income or outgoings attributable to the owner occupied Marks &
Spencer stores which have been assumed to continue trading.
If the Company’s land and buildings had not been valued as set out above, their net book value would have been:
2001 2000
£m £m
At valuation at 31 March 19751333.6 333.6
At cost 1,497.8 1,478.9
At 31 March 1,831.4 1,812.5
Accumulated depreciation (159.2) (117.1)
Net book value at 31 March 1,672.2 1,695.4
1The Company also valued its land and buildings in 1955 and in 1964. In the opinion of the directors, unreasonable expense would be incurred in obtaining the
original costs of the assets valued in those years and in 1975.
14. Fixed asset investments The Group The Company
A Investments Shares in Loans to
Joint Other Group Group Joint Other
venture1,2 investments3Total undertakings4undertakings venture1investments3Total
£m £m £m £m £m £m £m £m
At 1 April 2000 25.4 29.6 55.0 363.1 69.5 15.9 1.9 450.4
Additions 0.7 21.0 21.7 10.0 – – 6.7 16.7
Disposals – (12.1) (12.1) (0.4) (12.0) – (1.3) (13.7)
Share of joint venture’s property
revaluation 1.3 – 1.3 –––––
Repayment of loan (7.6) – (7.6) – – (7.6) – (7.6)
At 31 March 2001 19.8 38.5 58.3 372.7 57.5 8.3 7.3 445.8
1The joint venture represents a 50% interest in Hedge End Park Ltd, a property investment company. The partner in the joint venture is J Sainsbury plc.
2The Group’s investment in the joint venture includes £2.2m (last year £9.8m) of loans and accumulated reserves of £11.5m (last year £9.5m).
3Other investments include listed securities held by a subsidiary. The difference between their book value and market value is negligible. Other investments
also include 3,525,198 shares in the Company held by employee share trusts (‘the Trusts’). Of these shares, 3,525,198 (last year 468,263) were held by the Marks
and Spencer p.l.c. Qualifying Employee Share Ownership Trust (see note 24) and no shares (last year 240,000) were held by other trusts. At 31 March 2001,
shares held by the Trusts had a book value of £7.3m (last year £1.9m).
4Shares in Group undertakings of £372.7m (last year £363.1m) are stated after cumulative amounts written off of £543.6m (last year £543.6m).
Notes to the financial statements