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48 Marks and Spencer Gro up p.l.c.
Notes to the financial statements
25. Shareholders’ funds continued
Cumulative goodwill of £62.0m (last year £62.0m) arising on the acquisition of subsidiaries has been written off against the
profit and loss account reserve. As permitted by FRS 10, this goodwill has not been reinstated in the balance sheet and
remains written off to reserves. Company
Share capital Share Capital Profit
Ordinary Non-equity premium redemption and loss
shares B shares account reserve account Total
£m £m £m £m £m £m
At 31 March 2002 576.7 276.0 2.8 1,717.9 3,345.9 5,919.3
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 – – 23.0
Profit for the period ––––1.61.6
At 29 March 2003 567.5 118.2 23.8 1,886.9 3,047.8 5,644.2
26. Reconciliation of movements in Group shareholders’ funds Group
2003 2002
£m £m
Profit attributable to shareholders 480.5 153.0
Dividends (246.0) (238.9)
234.5 (85.9)
Other recognised gains and losses relating to the year 2.6 0.6
New share capital subscribed 23.0 8.9
Issue/redemption expenses –(9.3)
Amounts (deducted from)/added to profit and loss account reserve in respect of shares
issued to the QUEST (2.9) 2.5
Redemption of B shares (158.0) (1,717.9)
Purchase of own shares (141.7) (52.0)
Goodwill transferred to profit and loss account on sale/closure of businesses –368.2
Net reduction in shareholders’ funds (42.5) (1,484.9)
Opening shareholders’ funds 3,080.9 4,565.8
Closing shareholders’ funds 3,038.4 3,080.9
27. Reconciliation of operating profit to net cash inflow from operating activities Group
2003 2002
£m £m
Operating profit 717.9 643.8
Exceptional operating charges (see note 4A) 43.9 –
Operating profit before exceptional charges 761.8 643.8
Utilisation of provision against European trading losses –(42.5)
Depreciation 234.9 249.6
(Increase)/decrease in stocks (37.5) 66.2
Decrease in customer advances 167.1 76.2
Decrease/(increase) in other debtors 9.6 (44.5)
Increase in creditors 52.1 174.9
Net cash inflow before exceptional items 1,188.0 1,123.7
Exceptional operating cash outflow (see note 28A) (19.3) (30.0)
Net cash inflow from operating activities 1,168.7 1,093.7