Marks and Spencer 2007 Annual Report Download - page 87

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wwwwww..mmaarrkkssaannddssppeenncceerr..ccoomm//aannnnuuaallrreeppoorrtt22000077MARKS AND SPENCER GROUP PLC 8855
Executive Team Your Board Financial
Review Governance Financials
Shareholder
Information
27 STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Ordinary Share Capital
share premium redemption Hedging Other Retained
capital account reserve reserve reserve1earnings2,3 Total
£m £m £m £m £m £m £m
At 3 April 2005 as previously reported 414.5 106.6 2,102.8 (1.6) (6,542.2) 4,761.5 841.6
Prior year adjustment (see note 25) –––––48.4 48.4
At 3 April 2005 restated 414.5 106.6 2,102.8 (1.6) (6,542.2) 4,809.9 890.0
Profit for the year attributable to shareholders –––––523.1 523.1
Dividends –––––(204.1) (204.1)
Foreign currency translation –––––11.1 11.1
Shares issued on exercise of employee share options 6.1 55.7––––61.8
Redemption of B shares – – 11.0 – – (11.0) –
Purchase of own shares held by employee trust4–––––(6.0) (6.0)
Actuarial loss on retirement benefit deficit –––––(169.3) (169.3)
Deferred tax on retirement benefit deficit –––––52.0 52.0
Deferred tax on share schemes –––––21.8 21.8
Deferred tax on revalued properties –––––5.05.0
Charge for share-based payments –––––24.7 24.7
Cash flow hedges
– losses deferred in equity – – – (3.1) – – (3.1)
– recycled and reported in net profit – – – (1.4) – – (1.4)
– amount recognised in inventories – – – (3.8) – – (3.8)
– tax on fair value losses – – – 1.9 – – 1.9
At 1 April 20065420.6 162.3 2,113.8 (8.0) (6,542.2) 5,057.2 1,203.7
At 2 April 2006 4
42200..66116622..3322,,111133..88((88..00))((66,,554422..22))55,,005577..2211,,220033..77
Profit for the year attributable to shareholders –
–––––––––665599..99665599..99
Dividends –
–––––––––((226600..66))((226600..66))
Foreign currency translation –
–––––––––((1144..00))((1
144..00))
Shares issued on exercise of employee share options 4
4..334400..66––––––––4444..99
Redemption of B shares –
–––5544..77––––((5544..77))––
Purchase of own shares held by employee trust4–
–––––––––((1188..44))((1188..44))
Purchase of call option for Company’s shares –
–––––––––((1177..33))((1177..33))
Actuarial loss on retirement benefit deficit –
–––––––––((88..66))((88..66))
Deferred tax on retirement benefit deficit –
–––––––––44..0044..00
Deferred tax on share schemes –
–––––––––2222..332222..33
Charge for share-based payments –
–––––––––2277..332277..33
Cash flow and net investment hedges
– losses deferred in equity –
––
–––((77..44))––––((77..44))
– recycled and reported in net profit –
–––––1100..77––––1100..77
– amount recognised in inventories –
–––––22..11––––22..11
– tax on fair value gains –
–––––((11..88))––––((11..88))
At 31 March 2007 424.9 202.9 2,168.5 (4.4) (6,542.2) 5,397.1 1,646.8
1The ‘Other reserve’ was created as part of the capital restructuring that took place in 2002. It represents the difference between the nominal value of the shares
issued prior to the capital reduction by the Company (being the carrying value of the investment in Marks and Spencer plc) and the share capital, share premium
and capital redemption reserve of Marks and Spencer plc at the date of the transaction.
2Cumulative goodwill of £nil (last year £62.0m) arising on the acquisition of subsidiaries has been written off against retained earnings.
3Includes a cumulative £2.9m loss (last year £11.1m gain) in the currency reserve.
4The Marks and Spencer Employee Benefit Trust (‘the Trust’) holds 4,767,449 (last year 2,820,688) shares with a book value of £28.1m (last year £9.7m) and 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 are granted to employees at the discretion
of Marks and Spencer plc and shares are awarded to employees by the Trust in accordance with the wishes of Marks and Spencer plc under senior executive share
schemes, the Share Matching Plan and Restricted Share Plan. Dividends are waived on all of these Plans except for the Deferred Bonus Share Plan where dividends
are paid via a Dividend Reinvestment Plan for awards made in the form of forfeitable shares.
5Retained earnings were previously reported as £5,008.8m. Following the change in accounting policy this has been restated to £5,057.2m (see note 25).