Marks and Spencer 2007 Annual Report Download - page 88

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28 CONTINGENCIES AND COMMITMENTS
A Capital commitments 2007 2006
£m £m
Commitments in respect of properties in the course of construction 2
26655..8860.5
B Other material contracts:
In the event of a material change in the trading arrangements with certain warehouse operators, the Group has a commitment to
purchase property, plant and equipment, at values ranging from historical net book value to market value, which are currently
owned and operated by them on the Group’s behalf.
C Commitments under operating leases:
The Group leases various stores, offices, warehouses and equipment under non-cancellable operating lease agreements.
The leases have varying terms, escalation clauses and renewal rights.
2007 2006
£m £m
Total future minimum rentals under non-cancellable operating leases expiring:
Not later than one year 1
100..6610.2
Later than one year and not later than five years 5
577..4449.9
Later than five years and not later than 25 years 1
1,,777788..331,724.4
Later than 25 years 1
1,,552277..661,515.4
TToottaall33,,337733..993,299.9
The total future sublease payments to be received are £68.8m (last year £58.9m).
29 ANALYSIS OF CASH FLOWS GIVEN IN THE CASH FLOW STATEMENT
52 weeks 52 weeks
ended ended
31 March 1 April
2007 2006
A Cash flows from operating activities – continuing £m £m
Profit on ordinary activities after taxation 659.2 520.6
Income tax expense 277.5 225.1
Interest payable and similar charges 143.0 134.9
Interest receivable (33.8) (30.5)
Operating profit 1,045.9 850.1
Increase in inventories (42.8) (42.2)
Decrease/(increase) in receivables 12.5 (4.1)
Payments to acquire leasehold properties (13.5) (38.0)
Increase in payables 136.6 128.0
Exceptional operating cash outflow (see note 29F) (4.2) (14.6)
Depreciation and amortisation 282.7 274.0
Share-based payments 27.3 24.7
(Profit)/loss on property disposals (1.9) 5.7
Cash generated from operations – continuing 1,442.6 1,183.6
B Cash flows from operating activities – discontinued
Profit on ordinary activities after taxation 0.7 2.5
Profit on sale of business (0.4) –
Income tax expense –0.7
Net interest receivable –(0.2)
Operating profit 0.3 3.0
Decrease in working capital 0.1 3.5
Depreciation and amortisation 0.3 6.3
Loss on property disposals –1.1
Cash generated from operations – discontinued10.7 13.9
1The discontinued operation relates to Kings Super Markets Inc. There was a cash outflow of £nil (last year £5.2m) in relation to investing activities, £nil inflow (last year
£0.1m) in relation to financing activities and £nil outflow (last year £0.6m) for taxation.
Notes to the financial statements continued
8
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