Marks and Spencer 2007 Annual Report Download

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Annual report
and financial
statements
2007

Table of contents

  • Page 1
    Annual report and financial statements 2007

  • Page 2
    ... Chief Executive's business review Our marketplace Our brand Plan A Product - Clothing and home Product - Food Service Our people Our customers Environment International Online Looking ahead 27 28 31 35 44 51 52 52 Your Board Financial review Group Director's report Corporate governance statement...

  • Page 3
    ... of new space; new food formats; new product areas such as home technology; our new website and international expansion. And we continue to manage our impact on society and the environment with great care, through our 'eco plan', Plan A. Governance Your Board Financial Review Executive Team We...

  • Page 4
    ... MARKS AND SPENCER GROUP PLC www.marksandspencer.com/ annualreport2007 2007 performance Group revenue £m 2004/05 2005/06 2006/07 Group operating profit £m 2004/05 2005/06 2006/07 Group profit before tax (£m) 790.1 65.7 855.8 956.5 87.5 1,044.0 â- UK Retail 7,034.7 â- International Retail...

  • Page 5
    ...funding arrangement for the defined benefit pension scheme deficit uses part of our property portfolio to secure payments over the next 15 years. This has put an already good scheme on a sustainable, safer footing, balancing the interests of pension scheme members and investors. Your Board Executive...

  • Page 6
    ... 12 months, we have made important management changes, promoting existing talent and bringing in new people to ensure that we are set up for the next phase of our growth. We now have the right skills in place to further improve our products, stores and service, as well as pursue new opportunities...

  • Page 7
    ... 25. Steve Rowe Director of Home & Beauty Carl Leaver Director of International Business (joined 14 May 2007) 7. Keith Cameron Director of Human Resources 26. Nayna McIntosh Director of UK Store Presentation 8. Andrew Skinner Director of General Merchandise Planning & Supply Chain 17. Glen...

  • Page 8
    ... for the long term. We're confident we can do this, but the year ahead is undoubtedly a critical one for us. business review Increase in sales Chief Executive's GROUP SALES BREAKDOWN 7.1% £000 10.1 % 46.3% 2004/05 2005/06 2006/07 41.6% Clothing Home Food International 3,270.8 377.6 3,386...

  • Page 9
    ... three basic elements right - our products, the service we offer our customers, and the look Executive Team and feel of our stores. This will remain our focus as we continue to drive further improvements in the core business. At the same time, we have begun to look at new opportunities for growth...

  • Page 10
    ... if we keep getting our products and service right. As well as improving the look and feel of our stores, we have invested in our people, increasing the number of customer assistants and the amount of time they spend helping customers. Our work on reward, training and career paths is helping us...

  • Page 11
    ... approach to environmental and ethical issues. But it's not just about advertising. Better product, better looking stores, investment in customer service and a new website have been critical in encouraging people to reassess our brand. The positive net effect of our marketing mix continues to build...

  • Page 12
    ... supply chain and local communities. Health We'll help customers and employees choose healthier lifestyles through healthy food ranges and clear labelling. To find out more visit www.marksandspencer.com/PlanA 55,000 All our Simply Food stores, our stores in Scotland and our London head office...

  • Page 13
    ...Prince's Trust Partnership & Innovation Award. 1,500 We now have 1,500 trained Healthy Eating Assistants in our stores to advise our customers on healthy options. We will train all our food hall teams in nutrition within three years. 100% Almost all the carrier bags we use in our clothing and home...

  • Page 14
    12 MARKS AND SPENCER GROUP PLC www.marksandspencer.com/ annualreport2007 INNOVATION Our technologists work closely with suppliers to introduce new, innovative products, which have real practical benefits for our customers. This year, we launched our exclusive men's 'Stormwear' range which is made...

  • Page 15
    ... meeting our ethical standards on issues such as fair pay and working conditions. Our overseas offices also help us to find new suppliers who we can work with directly to produce great value products for our customers. In 2006/07, we bought 28% of our clothing and home products directly (last year...

  • Page 16
    ... brand we use across womenswear, men's, lingerie and home for contemporary products at the top end of our price range - is a good example Value As the UK's largest clothing retailer, we buy on a vast scale. This means we can give customers a broad spread of prices VALUE We offer customers a choice...

  • Page 17
    ...this work through our website, providing the widest range of colours, styles and sizes. We have also added to our home offer. Our technology shops, which we introduced to 12 stores and online in September, and to our Croydon store after the year end, offer a carefully selected range of branded goods...

  • Page 18
    ... 25% of our total ready meal offering. Developed in response to growing customer awareness about health, the range took 18 months to develop and includes dishes inspired by cuisines from around the world. All of the new dishes are based on Government guidelines for balanced calorie, fat, salt...

  • Page 19
    ....com/ annualreport2007 MARKS AND SPENCER GROUP PLC 17 SOURCING AND SUPPLY CHAIN We have always worked closely with suppliers to produce great food responsibly and sustainably. Because our food is 100% own brand, we can do this with real authority. We had already improved animal welfare standards...

  • Page 20
    ... are trialling 'Closed Loop Recycling' in five of our Café Revive coffee shops in London. Teams sort used café product packaging into recyclable and non-recyclable materials in store. The recyclable material is collected and turned back into raw materials for use in more packaging. HEALTH As part...

  • Page 21
    .... Trust Trust is one of the cornerstones of our business and our Governance customers expect us to take the lead on ethical trading and the environment. Through Plan A we will continue to improve our already high standards. One of the big issues we are tackling is packaging. We currently use around...

  • Page 22
    ... staff with more opportunities to progress within the Career Path structure introducing additional responsibility steps coupled with more competitive pay rates. We continue to offer among the top rates of pay in retail. In 2006/07, we extended the Career Path approach to store management. As well as...

  • Page 23
    ... 75,871 number of customer-facing staff. We have also worked to define and clarify store standards. Following this action, we saw productivity, the number of individual items sold per full-time member of staff in clothing and home, increase by 12.2% during the year. UK Stores Head office Other 61...

  • Page 24
    ... sustainable materials and dealing with waste. By April 2007, we had secured 175 GWh of renewable energy to power all our stores in Scotland, all our Simply Food stores in England and Wales and our London head office, saving 55,000 tonnes of CO2. This year, the first of a new breed of 'green' stores...

  • Page 25
    ... sites that suit our customers; and Your Board • Doubling the number of Simply Food stores to more than 400, including franchise stores at stations, airports and motorway services. We will also extend our partnership with BP, adding Simply Food stores at up to 200 BP Connect Financial Review...

  • Page 26
    ... two wholly-owned businesses in Hong Kong and the Republic of Ireland recorded a 14.0% increase in sales and a 26.8% increase in operating profit, to £45.4m. These are good results. We believe the time is right to pick up the pace of growth overseas. Our strategy is to focus on markets where there...

  • Page 27
    .... I believe we are now set up to offer one of the best e-commerce sites in the UK for clothing, homeware, gifts and selected food products with potential for further development. Your Board Financial Review Executive Team £500m We intend to grow our online sales from just over £100m in 2006/07 to...

  • Page 28
    ... focused on our plan of offering great products, in great stores with great customer service. We will also pursue new opportunities through new space at home and abroad, new product and service offers, and our relaunched website. We will continue to improve our product offer, both within our...

  • Page 29
    ... 2007. Jack was previously Deputy CEO of Guinness UDV, a board member of Diageo plc until 2001 and senior non-executive director of The Body Shop International plc. Jack is Patron of Cambridge University's Centre for International Business and Management. Steven Sharp Executive Director, Marketing...

  • Page 30
    ....7m (last year £2,257.4m). This reflected the ongoing investment in the growth of the business through our staff, stores and marketing. Increasing underlying cost pressures in areas such as energy, fuel, rent and rates have been well managed. Summary of results Group Summary Continuing operations...

  • Page 31
    ... in our stores to improve service for our customers. The increase in retail occupancy costs reflects space growth and higher energy costs. Distribution costs increased at a rate well below volume growth. Further investment in marketing has contributed towards our top line sales growth. Support...

  • Page 32
    ... of town stores such as London Colney, Braehead and Cheshunt. Capital expenditure on new stores was up £71m, reflecting the Simply Food opening programme and three new retail parks. Supply chain capital expenditure reflects investment made in new distribution centres in food and general merchandise...

  • Page 33
    ... the holding company of the Marks & Spencer Group of companies (the 'Group'). We are one of the UK's leading retailers of clothing, food and home products with over 15.8m people visiting our stores each week. We employ over 75,000 people and have around 520 UK stores including Simply Food franchise...

  • Page 34
    ... information regarding employee share option schemes is given in note 12 to the financial statements. Directors' responsibilities The directors are obliged under company law to prepare financial statements for each financial year and to present them annually to the Company's members in the Annual...

  • Page 35
    ... Board The main trading company, Marks and Spencer plc, has a policy concerning the payment of trade creditors as follows: • • general merchandise is automatically paid for 11 working days from the end of the week of delivery; Financial Review food is paid for 13 working days from the end of...

  • Page 36
    ... and Political Expenditure including sponsorship, subscriptions, payment of expenses, paid leave for employees fulfilling public duties and support for bodies representing the business community in policy review or reform. The Company has therefore obtained limited authority from shareholders as...

  • Page 37
    ... customers can always trust us to do the right thing. This statement explains our governance policies and practices and provides insight into how the Board and management run the business for the benefit of shareholders. The governance rules which apply to all UK companies listed on the London Stock...

  • Page 38
    ... Merchandise direct buying processes; General Merchandise distribution centre operations; e-commerce; Food buying; Food stock management; Food primary logistics; and financial controls over sales, stock and cash. The Committee received updates for Business Continuity Planning and Finance systems...

  • Page 39
    ...1 June 2007. It met eight times during the year and its primary role is to recommend to the Board the remuneration strategy and framework, giving due regard to the financial and commercial health of the Company and to ensure the executive directors and senior management are fairly rewarded for their...

  • Page 40
    ... Corporate governance statement Name of Director A Group Board B Audit Committee A B continued The following table sets out the number of meetings of the Board and its committees during the year and individual attendance by Board and committee members at those meetings: Remuneration Committee...

  • Page 41
    ... in place for the year under review and up to the date of approval of the Annual report and accounts. It has been regularly reviewed by the Board and accords with the Internal Control Guidance for directors on the Code produced by the Financial Reporting Council. Financials Shareholder Information

  • Page 42
    ... and Home We fail to achieve further sales growth in an increasingly competitive environment with potentially weaker economic conditions. See pp 12-15 and 24-25 Adverse effect on financial results Lost market share and customer loyalty New and better product, better styling and better value...

  • Page 43
    ... shopping Tracking of customer perceptions of shopping environment PLAN A: Our five-year 'eco plan', launched in January 2007, to tackle challenges across five areas: climate change, waste, sustainable raw materials, fair partner and health. Plan A We fail to manage, measure Lost stakeholder trust...

  • Page 44
    ... website also contains up to date corporate and customer information including the full response to the Code, matters reserved to the Board and terms of reference for the principal Board Committees. For improved accessibility we make Audio and large print versions of the text from our Annual review...

  • Page 45
    ...the All Employee share plan. Executive Team Many shareholders are also customers and in 2006 we sent Spend and Save vouchers to our shareholders. These again proved very popular. The offer for 2007/08 is being extended to technology products and the convenience of shopping online. Vouchers will be...

  • Page 46
    ...The Company Chairman, Chief Executive, Group Secretary and the Head of Senior Remuneration also materially assisted the Committee in its deliberations, except in relation to their own remuneration. The Remuneration Committee's remit is set out in the terms of reference which are reviewed annually by...

  • Page 47
    ... reviewing salaries such as Company performance, level of salaries for large retailers and for other major FTSE 100 companies, market conditions, the level of increase awarded to employees throughout the business and the responsibilities and skills of individual directors. Current annual salaries...

  • Page 48
    ... of 12 months' salary and specified benefits. In the case of all current executive directors, the Company reserves the right on termination to make phased payments which are paid in monthly instalments and subject to mitigation. Entitlement to participate in future share scheme awards ceases on...

  • Page 49
    ... statements starting on page 71 of the Annual report. There have been no other changes in the directors' interests in shares or options granted by the Company and its subsidiaries between the end of the financial year and 10 May 2007, one month prior to the Notice of the Annual General Meeting...

  • Page 50
    ...000) relates to payments to former directors under the Early Retirement Plan. Under this plan, the Remuneration Committee could, at its discretion, offer an unfunded Early Retirement Pension, separate from the Company pension, which was payable from the date of retirement to age 60. With effect from...

  • Page 51
    ...executive director. (Full details of the Restricted Share Plan are set out in Note 12 to the financial statements on page 74 of the Annual Report.) 2 3 Financial Review There has been no vesting or lapses for any of the above plans during this financial year. Directors' Share Option Schemes Date...

  • Page 52
    ... years. The FTSE 100 has been chosen as it is a recognised broad equity market index of which the Company has been a member throughout the period. Performance, as required by the legislation, is measured by Total Shareholder Return which is share price growth plus any dividends paid. 250 200 Value...

  • Page 53
    ... the Annual report and consider whether it is consistent with the audited financial statements. The other information comprises only the Chairman's foreword, the Chief Executive's business review, the Financial review, the Corporate governance statement, the unaudited part of the Remuneration report...

  • Page 54
    ... Consolidated statement of recognised income and expense Notes 52 w eeks ended 31 M arch 2007 £m 52 weeks ended 1 April 2006 £m Profit for the year attributable to shareholders Foreign currency translation differences Actuarial losses on retirement benefit deficit Cash flow and net investment...

  • Page 55
    ... liabilities Partnership liability to the Marks & Spencer UK Pension Scheme Retirement benefit deficit Trade and other payables Derivative financial instruments Provisions Deferred tax liabilities Total liabilities Net assets EQUITY Called up share capital - equity Share premium account Capital...

  • Page 56
    ... assets Cash outflow from decrease in debt financing Debt financing net of liquid resources disposed with subsidiary Fair value movement on derivatives Partnership liability to the Marks & Spencer UK Pension Scheme (non-cash) Exchange and other non-cash movements M ovement in net debt Closing...

  • Page 57
    ...between Group companies are eliminated. Executive Team Your Board Financial Review Revenue Revenue comprises sales of goods to customers outside the Group less an appropriate deduction for actual and expected returns, discounts and loyalty scheme voucher costs, and is stated net of Value Added Tax...

  • Page 58
    ...the defined benefit schemes. These determine the level of contribution required to fund the benefits set out in the rules of the plans and allow for the periodic increase of pensions in payment. The service cost of providing retirement benefits to employees during the year, together with the cost of...

  • Page 59
    ... Inventories Inventories are valued at the lower of cost and net realisable value using the retail method. All inventories are finished goods. Foreign currencies The results of overseas subsidiaries are translated at the weighted average of monthly exchange rates for sales and profits. The balance...

  • Page 60
    ... costs. Derivative financial instruments and hedging activities The Group primarily uses interest rate swaps and forward foreign currency contracts to manage its exposures to fluctuating interest and foreign exchange rates. These instruments are initially recognised at fair value on the trade date...

  • Page 61
    ... so as to write down the assets to their residual values over their estimated useful lives as set out above. The selection of these residual values and estimated lives requires the exercise of management judgement. D Post retirement benefits The determination of the pension cost and defined benefit...

  • Page 62
    ...The International segment consists of the Marks & Spencer owned businesses in the Republic of Ireland and Hong Kong, together with franchised operations. The geographic segments disclose revenue, operating profit and segment assets and liabilities by destination and reflect management responsibility...

  • Page 63
    ...lr e p o r t 2 0 0 7 MARKS AND SPENCER GROUP PLC 61 3 EXPENSE ANALYSIS 2007 £m 2006 £m Revenue Cost of sales Gross profit Selling and marketing expenses Administrative expenses Other operating income Profit/(loss) on property disposals Operating profit 8,588.1 (5,246.9) 3,341.2 (1,779.2) (584...

  • Page 64
    ... companies Non- audit related services Other services pursuant to legislation Tax advisory services Other services 0.3 0.8 1.1 0.1 0.2 0.2 0.5 0.3 0.8 1.1 0.1 0.3 0.1 0.5 In addition to the above, fees in respect of the annual audit of the Marks & Spencer UK Pension Scheme were £0.1m (last year...

  • Page 65
    ... to release properties for use in the limited partnership with the Marks & Spencer UK Pension Scheme. See note 21 for further details of the bond redemption. Last year includes a fair value gain on hedging instruments of £67.2m and a corresponding fair value loss on underlying medium term notes of...

  • Page 66
    ... B Taxation reconciliation 2007 £m 2006 £m Profit before tax Taxation at the standard UK corporation tax rate of 30% (last year 30%) Depreciation and charges on non-qualifying fixed assets Other income and expenses not taxable or deductible Tax on exceptional finance costs not deductible Overseas...

  • Page 67
    ... price of the Company's ordinary shares during the year. Details of the adjusted earnings per share are set out below: 2007 £m 2006 £m Executive Team Ear nings after tax Profit from discontinued operation Ear nings after tax - continuing Property disposals (net of tax) Exceptional finance costs...

  • Page 68
    ... working week, the equivalent average number of full-time employees for continuing operations would have been 52,670 (last year 46,989). C Directors' emoluments Emoluments of directors of the Company are summarised below. Further details are given in the Remuneration report on pages 44 to 50. 2007...

  • Page 69
    ... UK employees through the Marks & Spencer UK Pension Scheme. This has a defined benefit section, which was closed to new entrants with effect from 1 April 2002, and a defined contribution section which has been open to new members with effect from 1 April 2003. Further details of the Pension Scheme...

  • Page 70
    ... longevity improvements over the subsequent year. The specific mortality rates used are based on the PMA92 and PFA92 tables, adjusted to allow for the experience of scheme pensioners. The life expectancies underlying the valuation are as follows: 2007 Years 2006 Years Current pensioners (at...

  • Page 71
    ... cost of retirement benefits 1 - 91.1 1.3 80.7 Includes £8.6m (last year £6.3m) in relation to defined contribution plans. F Scheme assets Changes in the fair value of the scheme assets are as follows: 2007 £m 2006 £m Your Board Fair value of scheme assets at start of year Expected return...

  • Page 72
    ... in the present value of retirement benefit obligations are as follows: 2007 £m 2006 £m Present value of obligation at start of year Current service cost Curtailment gain Interest cost 1 Benefits paid Transfer on disposal of Financial Services Actuarial (gain)/loss Exchange movement Discontinued...

  • Page 73
    ... the terms of the Scheme, the Board may offer options to purchase ordinary shares in the Company once in each financial year to those employees who enter into an Inland Revenue approved Save As You Earn (SAYE) savings contract. Inland Revenue rules limit the maximum amount saved to £250 per month...

  • Page 74
    ... 2005, the Board may offer options to purchase ordinary shares in the Company to executive directors and senior employees at the market price on a date to be determined prior to the date of the offer. No further options may be granted under any schemes other than the 2005 scheme. No awards have been...

  • Page 75
    ... over the service period as employees leave the Company. Outstanding options granted under all executive share option schemes are as follows: Number of options Options granted Weighted average remaining contractual life (years) Option price Executive Team 2007 2006 2007 2006 (1984 Scheme) May...

  • Page 76
    ... to the success of the business recovery and growth. The Plan operates for senior executives below Executive Director level. Awards under the Plan are made as part of ongoing reviews of reward packages, and recruitment tools for new employees. The shares are held in trust for a period of between one...

  • Page 77
    ... long-term average growth rate for retail businesses in the UK. Management estimates the discount rate using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to retail businesses. A pre-tax discount rate of 9.5% has been used. Brands consist...

  • Page 78
    ....8 Year ended 1 April 2006 Opening net book value Exchange difference Additions1 Transfers Disposals Assets of discontinued operations Depreciation charge2 Closing net book value At 1 April 2006 Cost Accumulated depreciation Net book value Year ended 31 M arch 2007 Opening net book value Exchange...

  • Page 79
    ...in Hedge End Park Limited, a property investment company incorporated in Great Britain. The partner in the joint venture is J Sainsbury plc. In relation to the Group's interest in joint ventures, the assets and liabilities are shown below: 2007 £m 2006 £m Non-current assets Current assets Current...

  • Page 80
    ... assets approximates their fair value. The effective interest rate on short-term bank deposits is 4.9% (last year 4.5%); these deposits have an average maturity of three days (last year eight days). 20 TRADE & OTHER PAYABLES 2007 £m 2006 £m Current Trade payables Other payables Social security...

  • Page 81
    ... sterling and euro LIBOR for periods ranging from one to six months. Relates to three separate bonds securitised against 45 of the Group's properties which were redeemed on 12 March 2007 in order to release properties for use in the limited partnership with the Marks & Spencer UK Pension Scheme. See...

  • Page 82
    ... is as set out below excluding short-term payables and the partnership liability (see note 22): 2007 Fixed rate £m Floating rate £m Total £m Fixed rate £m Floating rate £m 2006 Total £m Currency Sterling Euro Hong Kong Dollar 1,374.5 - - 1,374.5 154.1 159.5 7.4 321.0 1,528.6 159...

  • Page 83
    ... of the Marks and Spencer Scottish Limited Partnership to the Marks & Spencer UK Pension Scheme. The Group has agreed a plan with the Pension Scheme Trustee to address the majority of the deficit by transferring properties with a current market value of £1.1bn into a partnership established by...

  • Page 84
    ... to interest rate risk in relation to the sterling, euro and Hong Kong dollar variable rate financial assets and liabilities. The Group's policy is to use derivative contracts where necessary to maintain a mix of fixed and floating rate borrowings to manage this risk. The structure and maturity...

  • Page 85
    ...28.3 2.0 (1.1) (6.6) (0.1) 22.5 Governance 2007 £m 2006 £m Current Non-current 5.7 16.8 22.5 9.2 19.1 28.3 Total provisions The provision for UK restructuring primarily relates to costs of closing Lifestore, restructuring of the Direct operation and head office restructuring. The provision...

  • Page 86
    ... each: At start of year Shares issued on exercise of share options At end of year Issue of new shares 17,336,086 (last year 24,341,872) ordinary shares having a nominal value of £4.3m (last year £6.1m) were allotted during the year under the terms of the Company's schemes which are described in...

  • Page 87
    ... a market value of £32.3m (last year £15.7m). These shares were acquired by the Trust in the market. In addition, the Trust has entered into a call option to purchase up to 8.1m of the Company's shares. The Trust used funds provided by Marks and Spencer plc to meet the Group's obligations. Awards...

  • Page 88
    ... profit Decrease in working capital Depreciation and amortisation Loss on property disposals Cash generated from operations - discontinued1 1 The discontinued operation relates to Kings Super Markets Inc. There was a cash outflow of £nil (last year £5.2m) in relation to investing activities...

  • Page 89
    ...Your Board E Other equity financing Shares issued on exercise of employee share options Purchase of own shares held by employee trust Purchase of call option for Company's shares 44.9 (18.4) (17.3) 9.2 61.8 (6.0) - 55.8 Financial Review F Exceptional operating cash flows UK restructuring costs...

  • Page 90
    ... lease liabilities (see note 21) Non-equity B shares (see note 21) Partnership liability to the Marks & Spencer UK Pension Scheme (see note 22) Financial assets included within assets of discontinued operation Interest payable included within related borrowing 180.1 50.9 (159.7) (296.9) (1,177...

  • Page 91
    ...k sa n d sp e n c e r . c o m / a n n u a lr e p o r t 2 0 0 7 MARKS AND SPENCER GROUP PLC 89 31 FOREIGN EXCHANGE RATES Weighted average sales rate Weighted average profit rate Balance sheet rate 2007 2006 2007 2006 2007 2006 Executive Team Euro US dollar Hong Kong dollar 1.48 1.88 14.77...

  • Page 92
    ... profit Income from shares in Group undertakings Finance costs Profit for the year attributable to shareholders C2,C3 C4 - 260.6 (0.2) 260.4 - 205.2 (2.5) 202.7 Company balance sheet Notes 2007 £m 2006 £m ASSETS Non-current assets Investments in Group undertakings Current assets Trade...

  • Page 93
    ...7 MARKS AND SPENCER GROUP PLC 91 Company statement of changes in shareholders' equity Profit attributable to shareholders Dividends Shares issued on the exercise of employee share options Change in shareholders' equity Opening shareholders' equity 52 weeks ended 31 March 2007 £m 52 weeks ended...

  • Page 94
    ...' remuneration in respect of the Company's annual audit has been borne by its subsidiary Marks and Spencer plc and has been disclosed on a consolidated basis in the Company's consolidated financial statements as required by section 227A of the Companies Act 1985. C4 FINANCE COSTS Dividends of...

  • Page 95
    ... Spencer Scottish Limited Partnership 1 Retailing Holding Company Holding Company Retailing Retailing Retailing Financial Services Finance Finance Finance Property Investment Procurement Procurement Property Investment Great Britain Great Britain The Nederlands Republic of Ireland Hong Kong Great...

  • Page 96
    ... operations Taxation on ordinary activities Profit after taxation Profit from discontinued operations Minority interests Profit attributable to shareholders 1 For 2007 includes £30.4m of exceptional finance costs which arose on the early redemption of £317.2m of secured bonds (see note 5).

  • Page 97
    ... assets Intangible non-current assets Property, plant and equipment (including investment properties) Trade and other receivables Joint venture and other financial assets Deferred tax assets Non-current assets Current assets Total assets Current liabilities Non-current liabilities Retirement benefit...

  • Page 98
    ... Dividend per share declared in respect of the year Dividend cover Profit attributable to shareholders Dividend payable Profit attributable to shareholders Average equity shareholders' funds Retail debt + net post retirement liability Retail debt + net post retirement liability + retail shareholders...

  • Page 99
    ...• Woolley Edge South Services • Woolwich Outlet • Worcester • Workington • Worthing • Wrexham • Wrythe (BP) • Wycombe Marsh • Yarmouth • Yeovil • York • York Outlet • York Retail Park Executive Team Your Board Financial Review Governance Financials Shareholder Information

  • Page 100
    ...in your Notice of Meeting. We welcome feedback on the site. Please email your comments to [email protected] Electronic communication Together with Lloyds TSB Registrars we are able to offer an easy to use, free and secure service allowing you to manage your shareholding online. You can...

  • Page 101
    ... 7 MARKS AND SPENCER GROUP PLC 99 SHAREHOLDER VOUCHERS Enjoy shopping at M&S stores and online with your annual shareholder vouchers. DIVIDENDS Receive dividends direct to your bank account in sterling or foreign currency, reinvest in more M&S shares or receive a cheque. ELECTRONIC COMMUNICATIONS...

  • Page 102
    ... a lr e p o r t 2 0 0 7 Glossary Better buying Refers to the way we now buy our clothing - at the right time, in the right amount at the right price. Gross margin Sales less the cost of goods sold, as a percentage of sales. Market share Business Involvement Groups (BIG) Comprise some 3,500 people...

  • Page 103
    ...45, 48 80 9, 56, 75 C Capital commitments Capital expenditure 23, 30, 60, Cash flow statement 54, Chairman's foreword Charitable donations Chief Executive's business review Clothing Corporate governance statement Cost of sales Critical accounting estimates and judgements Customers D Deferred tax 55...

  • Page 104
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