Marks and Spencer 2003 Annual Report Download - page 49

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23. Financial instruments and risk management continued
C Currency risk
The effect of currency exposures arising from the translation of overseas investments is mitigated by Group borrowings in
local currencies as appropriate. Gains and losses arising on net investments in overseas subsidiaries are recognised in the
consolidated statement of total recognised gains and losses.
After taking into account the effect of any hedging transactions that manage transactional currency exposures, no Group company
had any material monetary assets or liabilities in currencies other than their functional currencies at the balance sheet date.
24. Called up share capital 2003 2002
£m £m
Authorised:
3,200,000,000 ordinary shares of 25p each 800.0 800.0
3,200,000,000 non-equity B shares of 70p each (last year 3,200,000,000) 2,240.0 2,240.0
Allotted, called up and fully paid:
2,270,018,288 ordinary shares of 25p each (last year 2,306,951,943) 567.5 576.7
168,819,801 non-equity B shares of 70p each (last year 394,203,429) 118.2 276.0
685.7 852.7
Issue of new shares:
7,960,946 ordinary shares having a nominal value of £2.0m were allotted during the year under the terms of the Company’s share
schemes which are described in note 10. The aggregate consideration received was £23.0m.
Of the 7,960,946 ordinary shares referred to above, 3,823,448 ordinary shares were subscribed for by the Marks and Spencer
p.l.c. Qualifying Employee Share Ownership Trust (the ‘QUEST’) at market value of £11.9m. All of these shares were allocated to
employees, including executive directors, in satisfaction of options exercised under the Marks and Spencer United Kingdom
Employees’ Save As You Earn Share Option Scheme. The Group provided £2.9m (last year received £2.5m) to the QUEST for this
purpose. At 29 March 2003, no shares were held by the QUEST (see note 14).
Purchase of own shares:
During the period, 44,894,601 ordinary shares having a nominal value of £11.2m were purchased by the Group for an aggregate
consideration of £141.7m. These shares were then cancelled and the nominal value of the shares transferred to the capital
redemption reserve (see note 25).
Redemption of B shares:
During the period 225,383,628 B shares were redeemed at par at a total cost of £158.0m. The nominal value of £157.8m has
been transferred to the capital redemption reserve (see note 25).
The holders of B shares are not entitled to receive notification of any general meeting of Marks and Spencer Group p.l.c., or to
attend, speak or vote at any such meeting. B shares carry the right to a sub-LIBOR dividend paid on a semi-annual basis in
priority to any dividend paid to the holders of ordinary shares. In the event of the winding up of Marks and Spencer Group p.l.c.,
the holders of B shares will be entitled to 70p in respect of each B share held, together with the relevant proportion of the
dividend payable. The B shares may be redeemed at six monthly intervals. The next redemption date will be 25 September
2003. At any time after 19 March 2005, or earlier, when the total number of B shares remaining in issue becomes less than
25% of the total number of B shares originally issued, Marks and Spencer Group p.l.c. may, on giving notice in writing to the
holders of the B shares, redeem all, but not some, of the B shares in issue on that date. The redemption shall be on the basis of
70p per share.
25. Shareholders’ funds Group
Share capital Share Capital Profit
Ordinary Non-equity premium redemption Revaluation Other and loss
shares B shares account reserve reserve reserve account Total
£m £m £m £m £m £m £m £m
At 31 March 2002 576.7 276.0 2.8 1,717.9 387.3 (6,542.2) 6,662.4 3,080.9
Purchase of own shares (11.2) – – 11.2 – – (141.7) (141.7)
Redemption of B shares – (157.8) – 157.8 – – (158.0) (158.0)
Shares issued on exercise of
share options 2.0 – 21.0–––(2.9) 20.1
Revaluation of investment properties ––––(0.8) – – (0.8)
Revaluation surplus realised
on disposals ––––(4.1) – 4.1 –
Revaluation element of
depreciation charge ––––(1.4) – 1.4 –
Share of joint venture’s revaluation
surplus realised on disposals ––––(10.4) – 10.4 –
Exchange differences on foreign
currency translation ––––––3.43.4
Profit for the period ––––––234.5 234.5
At 29 March 2003 567.5 118.2 23.8 1,886.9 370.6 (6,542.2) 6,613.6 3,038.4