Marks and Spencer 2005 Annual Report Download - page 48

46 MARKS AND SPENCER GROUP PLC
Notes to the financial statements continued
14 TANGIBLE FIXED ASSETS continued
B Investment properties
Freehold land and buildings include investment properties as follows: Group
£m
Cost or valuation
At 4 April 2004 37.8
Additions 0.8
Revaluation surplus 4.0
At 2 April 2005 42.6
The freehold properties were valued as at 2 April 2005 by qualified professional valuers working for DTZ Debenham Tie Leung, Chartered
Surveyors, acting in the capacity of External Valuers. All such valuers are Chartered Surveyors, being members of the Royal Institution of
Chartered Surveyors (RICS). The properties were valued on the basis of Market Value at an aggregate value of £42.6m. All valuations were
carried out in accordance with the RICS Appraisal and Valuation Standards.
DTZ Debenham Tie Leung have been carrying out valuations for the Group for a continuous period since 2002. They provide and have
provided valuations of the Group’s occupational properties and, in addition, have provided ad hoc property advice in connection with
various aspects of the Group’s property portfolio. DTZ Debenham Tie Leung is a wholly-owned subsidiary of DTZ Holdings Plc (the ‘DTZ
Group’). In the DTZ Group’s financial year to 30 April 2004, the proportion of total fees payable by Marks & Spencer to the total fee
income of the DTZ Group was less than 5%.
C Tangible fixed assets at cost
Gerald Eve, a firm of independent Chartered Surveyors, valued the Group’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 Group’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.
If the Group’s land and buildings had not been valued as set out above, their net book value would have been:
2005 2004
£m £m
At valuation at 31 March 19751225.6 227.1
At cost 1,330.6 1,402.0
1,556.2 1,629.1
Accumulated depreciation (153.6) (146.3)
Closing net book value 1,402.6 1,482.8
1The Group 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.
15 FIXED ASSET INVESTMENTS Group
A Investments Joint Other
venture1investments2Total
£m £m £m
Cost
At 4 April 2004 8.5 15.9 24.4
Disposals – (0.8) (0.8)
Share of joint venture’s profits 0.2 – 0.2
At 2 April 2005 8.7 15.1 23.8
Accumulated provision and amortisation
At 4 April 2004 – 14.4 14.4
Provision for impairment – 0.4 0.4
At 2 April 2005 – 14.8 14.8
Net book value at 2 April 2005 8.7 0.3 9.0
At 3 April 2004 8.5 1.5 10.0
1The joint venture represents a 50% equity interest in Hedge End Park Limited, a property investment company incorporated in Great Britain. The partner
in the joint venture is J Sainsbury plc. The Group’s investment in the joint venture includes accumulated reserves of £2.6m (last year £2.4m).
2Other investments include listed securities held by a subsidiary. The difference between their net book value and market value is negligible.