Marks and Spencer 2006 Annual Report Download - page 3

www.marksandspencer.com/chairmansstatement2006 01
In the last two years, the Group has
undergone a period of significant and
necessary change under Stuart Rose’s able
and inspiring leadership.
Stuart joined us in May 2004. The Group
and our share price had been
underperforming for several years and
we were facing an unsolicited offer from
Revival Acquisitions.
Stuart has a profound understanding of this
extraordinary business. From day one, it
was clear he knew the issues that needed
to be addressed. He drew up a plan,
assembled the team to implement the plan,
and then got on with it, in a tireless and
focused manner.
The improvements seen in 2005/06, a
direct result of this approach, have been
reflected in our share price and a two-thirds
increase in earnings per share to 31.4p per
share (last year 19.2p), a record level for
the Group.
On the strength of this, we are proposing
a final dividend of 9.2p per share (last year
7.5p), providing a total dividend for the
year of 14.0p (last year 12.1p), an increase
of 15.7%.
With dividend cover now restored to over
two times, the Board’s future policy is to
grow dividends broadly in line with adjusted
earnings per share growth for each half of
the financial year. This will enable our
shareholders to participate fully in the
growth of the business and provide clarity
on our approach to future dividend
determination.
I would like to thank our many shareholders
for their unwavering support during this
period and welcome those new to the share
register. We are also delighted that we will
be sharing our success with all employees
at every level in the Group next month. Our
reward scheme this year includes a one-off
discretionary bonus for our customer
assistants of up to £500 each.
Chairing any major public company is an
honour, but chairing M&S is a special
privilege. Few companies enjoy the sort of
relationship we have with our customers –
a relationship summed up so well by the
‘Your M&S’ campaign. That makes our work
as directors fulfilling, but it comes with a
particular responsibility: we can never afford
to be complacent.
We remain committed to our values –
Quality, Value, Service, Innovation and Trust.
These have a growing resonance as more
and more people look to make careful
choices about where they shop and what
they buy.
This year we have worked to tell our
customers even more about how we go
about our business through the ‘Look
behind the label’ campaign. We are proud
of the sort of company M&S is – both highly
commercial and responsible. We are
determined to keep it that way.
I said last year that we had some important
work to do to make sure the Board was
properly structured. There have been
significant changes.
Chairman’s statement
Last year we continued to deliver the
plan we set out in 2004 to return to
growth. We have made progress.
However, there is more to do and
more value to deliver.
Paul Myners
YOUR DIVIDEND
14.0p
Total dividend
4.8p
First half dividend
9.2p
Final dividend
Marks and Spencer Group plc