Marks and Spencer 2006 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2006 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

58 Marks and Spencer Group plc
Notes to the financial statements continued
2 SEGMENTAL INFORMATION
The Group’s primary reporting segments are geographic, with the Group operating in two geographic areas being the UK and
International. The geographic segments disclose revenue, operating profit and operating assets and liabilities by destination and
reflect management responsibility. Within each geographic segment the Group sells both Food and General Merchandise and
secondary segment disclosure is given for revenue. Given that both Food and General Merchandise are sold from the same
locations it is not practical to provide segmental information on operating assets and capital expenditure at this level.
The Group’s geographical segments are United Kingdom and International Retail. The International segment consists of the
Marks & Spencer owned businesses in the Republic of Ireland and Hong Kong, together with franchise operations.
The geographic segment results are as follows:
Revenue Operating profit Operating assets Operating liabilities
2006 2005 2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m £m £m
United Kingdom
Before exceptional operating charges 7,275.0 7,034.7 784.5 588.3
Exceptional operating charges –––(60.3)
7,275.0 7,034.7 784.5 528.0 4,431.2 4,443.2 (1,630.7) (1,084.7)
International Retail
Before exceptional operating charges 522.7 455.8 65.6 60.4
Exceptional operating charges –––9.7
522.7 455.8 65.6 70.1 214.5 215.2 (81.5) (60.0)
Total 7,797.7 7,490.5 850.1 598.1 4,645.7 4,658.4 (1,712.2) (1,144.7)
Assets/(liabilities) from
discontinued operation169.5 59.3 (20.5) (17.1)
Total non-operating assets/(liabilities) 495.3 149.6 (2,322.5) (2,796.3)
Total assets/(liabilities) 5,210.5 4,867.3 (4,055.2) (3,958.1)
1The assets and liabilities in the comparative period relate only to Kings Super Markets.
Revenue originates in the following geographical segments: United Kingdom £7,473.3m (last year £7,208.9m) and International
£324.4m (last year £281.6m). The value of goods exported from the UK, including shipments to international subsidiaries, amounted
to £367.6m (last year £319.9m).
The Group completed the sale of Marks and Spencer Retail Financial Services Holdings Limited to HSBC Holdings plc on
9 November 2004. At the same time, the Group and HSBC entered into a relationship under which the Group continues to share
in the success of the business. Under this relationship, the Group receives income in the form of fees representing an amount
equivalent to costs incurred, 50% of the profits of M&S Money (after a notional tax charge and after deducting agreed operating
and capital costs) together with an amount relating to sales growth. In the current year, a net operating profit of £9.6m has been
recorded and is included within the results for UK Retail.
Other segment items:
2006 2005
United United
Kingdom International Total Kingdom International Total
£m £m £m £m £m £m
Revenue
General Merchandise 3,644.4 366.0 4,010.4 3,641.6 331.1 3,972.7
Food 3,630.6 156.7 3,787.3 3,393.1 124.7 3,517.8
7,275.0 522.7 7,797.7 7,034.7 455.8 7,490.5
Expenditure on property, plant and equipment 307.3 14.1 321.4 184.0 29.9 213.9
Expenditure on intangible assets 10.7 0.2 10.9 159.6 – 159.6
Depreciation 252.5 8.8 261.3 253.3 5.4 258.7
Amortisation 12.7 – 12.7 11.4 – 11.4