Marks and Spencer 2003 Annual Report Download - page 5

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www.marksandspencer.co m 3
Group summary 2003 2002
Summary of results from continuing operations £m £m
Turnover (ex VAT) 8,077.2 7,619.4
Operating profit (before exceptional charges) 761.8 629.1
Exceptional operating charges (43.9) –
Operating profit (after exceptional charges) 717.9 629.1
Non-operating exceptional income 1.6 41.2
Interest (40.5) 17.6
Profit on ordinary activities before tax 679.0 687.9
Basic earnings per share 20.7p 17.4p
Adjusted earnings per share 22.2p 15.9p
Dividend per share 10.5p 9.5p
Presented below are the highlights for the year for the Group’s continuing businesses. Commentaries are included covering
the performance of UK Retail, International Retail, and Financial Services. In addition, key features of the Group’s profit and
loss account, balance sheet and cash flow are discussed.
Highlights
•Turnover up 6.0%;
•Operating profit before exceptional charges up 21.1%, largely driven by a turnaround in performance by UK Retail;
•Profit on ordinary activities before tax and exceptional items up 11.5%;
•Adjusted earnings per share from continuing operations up 39.6%; and
•Dividend per share up 10.5%.
2003 2002
Group turnover from continuing operations £m £m
UK Retail 7,066.0 6,575.2
International Retail 681.3 693.4
Financial Services 329.9 350.8
Total 8,077.2 7,619.4
2003 2002
Operating profit from continuing operations £m £m
UK Retail (before exceptional items) 631.9 505.2
International Retail 43.5 33.3
Financial Services 86.4 84.2
Excess interest charged to cost of sales of Financial Services –6.4
Total operating profit (before exceptional items) 761.8 629.1
UK Retail 2003 2002
Turnover (£m) 7,066.0 6,575.2
Operating profit (before exceptional items) (£m) 631.9 505.2
Number of stores (at the end of the year) 331 312
Selling space at the end of the year (m sq ft) 12.3 12.2
Turnover was up 7.5% on last year at £7,066m. For the 52 weeks ended 29 March 2003, General Merchandise
(which comprises Clothing, footwear, gifts and Home) like-for-like sales increased by 9.0% compared to an actual increase
of 9.8%, and Food like-for-like sales increased by 3.7% compared to an actual increase of 5.1%.
Clothing performance during the year was strong, as a result of the focus on the appeal, quality, availability and fit of our
product. Womenswear, Menswear and Lingerie all increased market share for the year (source: Fashiontrak). Casualwear
performed particularly strongly, with core womenswear ranges, per una and Blue Harbour, all showing strong year-on-year
increases. The fourth quarter was a more difficult trading period, particularly in Greater London.
The performance of Childrenswear has been disappointing. Action has been taken to improve design and to consolidate
ranges to offer more choice. The initial strong response to the DB07, David Beckham, range has been maintained. In addition
to older boyswear, schoolwear is now showing signs of improvement.
Financial review
Analysed between:
Profit on ordinary activities before
taxation and exceptional items 721.3 646.7
Exceptional items (42.3) 41.2