Marks and Spencer 2006 Annual Report Download - page 25

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23Marks and Spencer Group plc
Shareholder returns and dividends
Adjusted earnings per share from continuing operations, which
excludes the effect of exceptional items and asset disposals,
has increased by 63.5% to 31.4p per share.
The dividend charge for the year of £204.1m (last year
£236.9m) reflects dividends paid of 12.3p per share
(last year 11.7p per share).
The Directors have proposed a final dividend of 9.2p per share,
an increase of 22.7%. In accordance with IAS 10 – ‘Events after
the Balance Sheet Date’ this proposed dividend has not been
recognised within these results.
The following chart shows the Group’s share price performance
over the year (right hand scale) together with its performance
relative to the FTSE 100 and General Retailers indices.
The share price ended the year at 556.5p and traded between
319.25p and 575.75p during the year.
Cash flow
The Group generated a cash inflow from operations of
£1,197.5m (last year £1,601.8m). Within this, the cash inflow
from continuing operating activities increased by £309.2m to
£1,183.6m reflecting higher operating profits, a marginally lower
investment in working capital, and a reduction in cash outflows
relating to exceptional items.
The components of the Group’s free cash flow are shown in
the chart below:
Within working capital, investments in stock have been more
than offset by the £73m bonus which has been provided for, but
will not be paid until July, together with an increased level of
trade payables.
Free cash flow
EBITDA Working
capital
and other
movements
Net
capital
expenditure
Tax paidInterestFree
cash flow
£m
1,200
0
400
200
600
800
1,000
(264.3)
64.1
(129.9)
(101.5)
701.8
1,133.4
Apr
05
Jun
05
Aug
05
Oct
05
Dec
05
Feb
06
Apr
06
Relative to General retailers (LHS)
Relative to FTSE 100 (LHS) M&S (RHS)
100
110
120
130
140
150
160
300
200
100
400
500
600
Share price performance