Marks and Spencer 2004 Annual Report Download - page 37

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35
www.marksandspencer.com
5. NET INTEREST EXPENSE 2004 2003
£m £m £m £m
Bank and other interest income 248.5 272.8
Less: amounts included in turnover of Financial Services (235.2) (262.0)
13.3 10.8
Interest expenditure (136.1) (137.0)
Less: interest charged to cost of sales of Financial Services 77.0 85.7
(59.1) (51.3)
Net interest expense (45.8) (40.5)
Interest expenditure comprises:
Amounts repayable within five years:
Bank loans, overdrafts and other borrowings (22.2) (22.4)
Medium term notes (68.1) (69.8)
Securitised loan notes (1.2) (1.0)
(91.5) (93.2)
Amounts repayable after five years:
Medium term notes (24.8) (24.1)
Securitised loan notes (19.8) (19.7)
(44.6) (43.8)
(136.1) (137.0)
6. TAXATION ON ORDINARY ACTIVITIES
A Taxation charge for the period 2004 2003
£m £m £m £m
Current taxation
UK corporation tax at 30% (last year 30%):
Current year 205.7 211.2
Prior years (3.6) (16.4)
202.1 194.8
Overseas taxation 3.7 3.7
Total current taxation 205.8 198.5
Deferred taxation (see note 22)
Current year 26.0 7.4
Prior years (2.5) 2.9
Total deferred taxation 23.5 10.3
229.3 208.8
Included in the tax charge for the year is a credit of £12.7m (last year £9.1m credit) which is attributable to
exceptional charges.
B Taxation reconciliation 2004 2003
£m £m
Profit before taxation 781.6 715.7
Taxation at the standard UK corporation tax rate of 30% (last year 30%) 234.5 214.7
Permanent differences 6.0 10.5
Capital allowances in (excess of)/less than depreciation (1.8) 2.4
Other timing differences (24.2) (9.7)
Net effect of restructuring charges 1.9 0.6
Net effect of different rates of tax in overseas businesses (7.0) (3.6)
Adjustments to tax charge in respect of prior periods (3.6) (16.4)
Total current taxation 205.8 198.5