Marks and Spencer 2007 Annual Report Download - page 33

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www.marksandspencer.com/annualreport2007 MARKS AND SPENCER GROUP PLC 31
Group Directors’ report
Business review
The Companies Act 1985 requires the Company to set out in this report a fair review of the business of the Group during the
financial year ended 31 March 2007 including an analysis of the position of the Group at the end of the financial year, and a
description of the principal risks and uncertainties facing the Group (known as a ‘Business review’).
The informaton that fulfils the Business review requirements can be found in the following sections of the Annual report which are
incorporated into this report by reference:
• Chairman’s foreword on page 3
• Chief Executive’s business review on pages 6-26
• Financial review on pages 28-30
• Principal risks and uncertainties on pages 40-41
• Environmental, Social and Community matters on pages 10-11 and Employees on pages 20-21.
Also within the How we do business report available on our website at www.marksandspencer.com/howwedobusinessreport2007
Pages 31-34 inclusive (together with the sections of the Annual report incorporated by reference) consist of a Group directors’ report
that has been drawn up and presented in accordance with and in reliance upon applicable English company law and the liabilities of
the directors in connection with that report shall be subject to the limitations and restrictions provided by such law.
Principal activities
Marks and Spencer Group plc is 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 stores, as well as an expanding international
business.
Profit and dividends
The profit for the financial year, after taxation, amounts to £659.9m (last year £523.1m). The directors have declared dividends as
follows:
Ordinary shares £m
Paid interim dividend of 6.3p per share (last year 4.8p per share) 106.0
Proposed final dividend of 12.0p per share (last year 9.2p per share) 204.0
Total ordinary dividend, 18.3p per share (last year 14.0p per share) 310.0
The final ordinary dividend will be paid on 13 July 2007 to shareholders whose names are on the Register of Members at the close
of business on 1 June 2007.
Changes in share capital
(i) Issue of new ordinary shares
During the period, 17,336,086 ordinary shares in the Company were issued as follows:
• 6,550 shares under the terms of the 1984 Executive Share Option Scheme at a price of 458p;
• 328,531 shares under the terms of the 1997 Executive Share Option Scheme at prices between 358p and 557p;
• 201,694 shares under the terms of the 2000 Executive Share Option Scheme at prices between 215p and 350p;
• 4,985,243 shares under the terms of the 2002 Executive Share Option Scheme at prices between 270p and 353p; and
• 11,814,068 shares under the terms of the United Kingdom Employees’ Save As You Earn Share Option Scheme at prices
between 156p and 349p.
(ii) Purchase of ordinary shares
The Company is authorised by the shareholders to purchase, in the market, the Company’s own shares, as permitted under the
Company’s Articles of Association. The Company engages in share buy-backs to create value for the shareholders, when cash flow
permits and there is not an immediate alternative investment use for the funds. During the year, no shares were bought back under
this authority. This authority is renewable annually and approval will be sought from shareholders at the Annual General Meeting in
2007 to renew the authority for a further year. It is the Company’s present intention to cancel any shares it buys back, rather than
hold them in treasury.
Executive Team Your Board Financial
Review Governance Financials
Shareholder
Information