Marks and Spencer 2006 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 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

91Marks and Spencer Group plc
32 RELATED PARTY TRANSACTIONS
A Subsidiaries
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are
not disclosed in this note. Transactions between the Company and its subsidiaries are disclosed in the Company’s separate financial
statements (on page 99).
B M&S Money
The Group sold 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 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. The fees received in the period from 10 November
2004 to 2 April 2005 were £16.4m.
In addition the Group also received in the same period £1.1m for rent and £15.1m for costs incurred as part of the transition of
M&S Money to HSBC. The Group also conducted settlement transactions with M&S Money in the normal course of business.
At 2 April 2005, the amount owed by M&S Money was £16.2m.
C Hedge End joint venture
A loan of £5.0m was received from the joint venture on 9 October 2002. It is repayable on five business days’ notice and
was renewed on 31 December 2005. Interest was charged on the loan at 3% from 1 January 2004 to 31 December 2004
and at 5% thereafter.
D Marks & Spencer Pension Scheme
Details of other transactions and balances held with the Marks and Spencer Pension Scheme are set out in note 11.
E Key management compensation
2006 2005
£m £m
Salaries and short-term benefits 12.0 12.5
Post-employment benefits 0.7 0.9
Termination benefits 1.6 7.0
Share-based payments 4.7 4.0
19.0 24.4
The key management figures given above include directors. Further information about the remuneration of individual directors is
provided in the Remuneration report.
During the year, key management have purchased goods at the Group’s usual prices, less a 20% discount. This discount is available
to all staff employed directly by the Group in the UK.
Interest-free loans outstanding to key management, which includes no directors, at 1 April 2006 were £13,678 (last year £50,561).
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No provision has
been made for doubtful debts in respect of the amounts owed by related parties.