Marks and Spencer 2006 Annual Report Download - page 2

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GROUP SALES
2006
£7.8bn
2005 £7.5bn
EARNINGS PER SHARE
(ADJUSTED)*
2006
31.4p
2005 19.2p
GROUP OPERATING PROFIT*
2006
£855.8m
2005 £649.1m
RETURN ON EQUITY
2006
52.3%
2005 35.0%
GROUP PROFIT BEFORE TAX*
2006
£751.4m
2005 £556.1m
CASH FLOW
2006
+£550.5m
2005 -£104.5m
WE ARE ONE OF THE UK’S LEADING RETAILERS,
WITH OVER 15 MILLION PEOPLE VISITING OUR
STORES EACH WEEK.
We offer stylish, high quality, great value clothing and home
products, as well as outstanding quality foods, all responsibly
sourced from suppliers we trust. We employ 65,000 people
and have over 450 UK stores, as well as a flourishing
international business.
FINANCIAL HIGHLIGHTS
WHAT’S INSIDE...
01
Chairman’s statement
03
Chief Executive’s review
08
Operating review
08 Clothing and Home
12 Food
15 International
16 Our stores
17 Our people
18 Responsible retailing
19
Your directors
20
20 Financial review
26 Group directors’ report
32 Corporate governance
40 Remuneration report
49 Auditors’ report
50 Consolidated income
statement
50 Consolidated statement
of recognised income
and expense
51 Consolidated balance
sheet
52 Consolidated cash flow
information
53 Notes to the financial
statements
95 Company financial
statements
100 Group financial record
103 Index
104 Shareholder information
CLOTHING AND HOME
UK SALES (EX. VAT)
£3,644.4m (+0.0%)
We are the UK’s largest clothing
retailer. Clothing represents 45.2%
of our UK business. In 2005/06,
we re-launched Menswear
‘Autograph’, expanded our
Womenswear ‘Autograph’ offer
and introduced a ‘per una’ range
in Lingerie and ‘Girls Boutique’ in
Childrenswear. Home represents
around 4.9% of our UK turnover
and offers great value, stylish
furniture and home products.
See pages 8-11 for more detail.
FOOD
UK SALES (EX. VAT)
£3,630.6m (+7.0%)
Food accounts for 49.9% of
our UK business and we have a
market share of 3.2% (source:
TNS). In 2005/06, we re-launched
the additive and preservative-free
‘Marks & Spencer Cook!’ range,
extended ‘Eat Well’ to over 1,000
products and started to sell only
Fairtrade coffee. We have 144
‘Simply Food’ stores across the UK.
See pages 12-15 for more detail.
INTERNATIONAL
SALES
£522.7m (+14.7%)
Our International business
comprises wholly-owned stores,
in the Republic of Ireland and
Hong Kong, and 198 M&S
branded franchise stores
worldwide, including 22 stores
opened in 2005/06. In March,
we agreed the sale of Kings Super
Markets, the US supermarket
chain, for £35.4m ($61.5m) in the
last part of the programme to
refocus the business.
See page 15 for more detail.
* Before exceptional items and asset disposals.
www.marksandspencer.com/businesssummary2006