Marks and Spencer 2008 Annual Report Download

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Annual report and
financial statements 2008
Quality •Value •Service •Innovation •Trust

Table of contents

  • Page 1
    Annual report and financial statements 2008 Quality Value Service Innovation Trust

  • Page 2
    ... of shareholder communication (see page 4 for details). Our annual report website now offers: Key performance indicators 2 Key performance indicators Business review 4 Chairman's foreword 5 Chief Executive's statement 9 Group Finance and Operations Director's statement 10 Our core UK business 11...

  • Page 3
    .... During the year, we entered 4 new territories and opened 38 new stores. >read more on page 5 Shareholder information £4,059m (+1.4%) We are the UK's largest clothing retailer with a value market share of 11.0% and volume market share of 11.2% (source: TNS Worldpanel) and sales accounting for 48...

  • Page 4
    ...share value Food 2007/08 Market share volume Clothing & footwear 2007/08 4.3% 2006/07 4.2%* 2005/06 4.1% Note: As part of TNS' annual restatements, data can sometimes alter in prior years as they make changes to definitions or clean up the data following more detailed information. This has always...

  • Page 5
    ... service quality. In 2007/08 that was the equivalent of approximately 6,240 visits to our stores. Scores for each question are validated through an online customer survey. 84 2007/08 85 84 85 85 86 87 88 87 88 87 84 81 78 73 70 73 79 82 82 82 83 Financial review 2006/07 Operational...

  • Page 6
    ... a further new independent non-executive director. To see a copy of this letter go to marksandspencer.com/thecompany You may notice certain changes to this year's report, resulting from the new Companies Act 2006. Shareholders were given a choice of formats in which to receive our report, and we...

  • Page 7
    ...products we offer, our customer service and shopping environments. In 2007/08 we continued to make progress against the plan. We sold more goods to more people, reporting our biggest volume increase in sales in eight years, with volume market share in clothing and footwear at 11.2%. At the same time...

  • Page 8
    ...My new role will also give me time to develop and mature talent within the business - a key task for any Chairman. At the same time the Board will be able to continue to drive a proven plan without distraction, in a difficult economic environment. Responding to market conditions 2007/08 was a year...

  • Page 9
    ... and offer great value for money. Work to segment our sub-brands was also central to the kidswear plan, as we took important steps to win back market share. In menswear and home, changing customers' perception of value was the focus as we competed hard on opening price points (with home prices at...

  • Page 10
    ...; well-priced, quality products; a clear plan; and dedication to understanding what our customers want - all of which put us in a good position to meet the difficult market conditions that lie ahead. I would like to pay tribute to all of our staff and suppliers for their hard work this year. It...

  • Page 11
    ... MARKS AND SPENCER GROUP PLC 9 Group Finance and Operations Director's statement Highlights About us Key performance indicators 7.9% Increase in earnings per share £1.1bn £914m Capital expenditure Returned to shareholders Ian Dyson Business review 2007/08 was a year in which we made good...

  • Page 12
    10 MARKS AND SPENCER GROUP PLC Our core UK business In the following pages we review our core UK business, which covers the individual business units of womenswear, menswear, kidswear, home and food, as well as our service (including IT and logistics) and store environments. Building our brand ...

  • Page 13
    ... closely at our price structure to ensure our competitiveness at opening price points. Leather From biker jackets to our famous Little Black Dress, we introduced affordable leather in line with the latest catwalk trends. Financial review Marketplace trends Governance In 2007/08, the retail market...

  • Page 14
    ...AND SPENCER GROUP PLC In lingerie, the continual introduction of innovative products in an extended range of sizes, as well as better segmentation of our brands, helped us stay at number one with 24.8% value market share and 17.9% volume market share. particular emphasis on building on the success...

  • Page 15
    ...George Davies' 25-year career as a fashion innovator. Business review Financial review Looking ahead In 2007/08 we introduced great value at our opening price points in both womenswear and lingerie and in doing so made good progress in attracting customers in the under-35 age range. 2008/09 will be...

  • Page 16
    ... of price points. Tailoring is a good example. We now offer suits in a wide range of styles, fabric and fit - from a great value 'first suit' at £49.50 to handmade suits at £799 that rival varieties on Savile Row. Smart new ideas More than a quarter of our menswear sales come from products with...

  • Page 17
    ... MARKS AND SPENCER GROUP PLC 15 Kidswear In 2007/08 we made positive progress towards our long-term goal of winning back market share in children's clothing. Achieving greater consistency across our sub-brands, pricing structure and supply base has helped us increase our volume market share...

  • Page 18
    ... stores and online, selling market-leading brands such as Sony and Apple. We'll be extending this range to 50 stores in 2008/09. A range of white goods, including fridges, cookers and washing machines, were introduced in Lisburn and online in 2007/08 and we will continue to expand this offer to new...

  • Page 19
    ... increase our market share to just over 5% of the total UK food market. Business review The year in numbers Some 4,000 new and improved products, including the new Food to Go sandwiches and Gourmet to Go deli salads; more than 100 newly trained wine specialists; and over 300 awards for our cheese...

  • Page 20
    ... to the Board as Executive Director of Food in March 2008. Everyday value When it's in season, it's British. As part of this move to be a more convenient place to shop, we have reviewed the prices of popular shopping basket items to ensure they are competitive. These items range from cornflakes...

  • Page 21
    ... As a result we now offer in a number of stores truly free range pork, which is the first step towards meeting of our Plan A commitment to convert all of our outdoor bred fresh pork to free range. Business review Financial review Kids count too It's not just food for grownups where health matters...

  • Page 22
    ... and national level. We also engage with employees through our annual YourSay survey, giving them the chance to tell us what they think about a range of issues - including job satisfaction and management performance. Training and development Good training and a clearly defined career path are...

  • Page 23
    .... In 2007/08 we received a record 8,500 applications in just over two months. All of which helps to explain why we won four major graduate recruitment awards last year, including The Times' 'Graduate Employer of Choice' for retail in 2008. Business review Financial review Katie Wyle, Store Manager...

  • Page 24
    ... addition to training and developing our in-store staff so that they consistently perform well, we're also investing behind the scenes to improve our logistics and IT infrastructure. This investment will allow us to efficiently run our supply chain and IT systems so that stock is managed tightly and...

  • Page 25
    ... consists of new overseas warehouses, as well as offshore stockholding and consolidation facilities. The plan has helped us to develop faster and more efficient IT systems throughout our business. For instance, we are introducing new point of sale systems, including more than 2,000 new tills and...

  • Page 26
    ...3 more green success stories to build on... Simply Food In the last seven years, our Simply Food business has grown in the UK to 299 stores trading in a highly competitive market. We opened 26 wholly-owned stores and 72 franchised stores (64 of which are located on BP forecourts) during 2007/08, and...

  • Page 27
    ... contenders, at the 10th Annual Retail Interior awards. Convenience Chain of the Year for Simply Food - Checkout Magazine. Key performance indicators 2 3 Business review A greener way to shop In September 2007, we opened the first of our new 'eco stores'. Located in Bournemouth, we deliberately...

  • Page 28
    ... our e-commerce website, it also includes our home catalogue, flower and wine delivery, Christmas hamper delivery, in-store food ordering service and Lunch to Go, which delivers lunchtime platters. Sales were up £60m in 2007/08 to £220m, with M&S Direct growing faster than the market, and...

  • Page 29
    ...'t be found in-store. We sell over 20 varieties of champagne with prices from approximately £100 to £240 per case. Customer response to our improved online offering has been so positive that we're planning to launch a wine club in 2008/09. Business review Financial review Governance Big and Tall...

  • Page 30
    ...five years. The new stores will sell a wider range of products than previously, and at lower prices, including a full range of clothing and homeware, and a growing number of products sourced from local suppliers. April 2008 51% 30-50 Deal signed with Reliance Retail Stake in partnership New stores...

  • Page 31
    ... later this year A taste of Britain In 2007/08 we started to freeze our ready meals for international sale and have launched a range of 70 lines in eight countries. The new category has been well received, and we are presently working on extending the range and the numbers of stores carrying the...

  • Page 32
    ... from our operations; • extend sustainable sourcing; • set new standards in ethical trading; and • help customers and employees live a healthier lifestyle. We're committed to Plan A, because it's the right thing to do. There's also a powerful business case. Plan A not only gives us distinction...

  • Page 33
    ... that communicate our messages or help us to find innovative solutions. We were awarded the World Environment Center's (WEC) 24th Annual Gold Medal for International Corporate Achievement in Sustainable Development, for linking sustainability with our supply chain, operations and customers. We...

  • Page 34
    ... March 2008. Age 47. Steven is a non-executive director of The Carphone Warehouse Group plc. He joined Marks & Spencer in June 2007 from Waitrose where he had been the Managing Director. Steven joined the John Lewis Partnership in 1996 as Director of Buying at Waitrose. He spent his early career at...

  • Page 35
    ... due to the changes made in the terms of the UK defined benefit plan relating to how members' future benefits build up from 1 October 2007. To the extent that members have chosen the option to limit their future pensionable salary increases in line with inflation, there is a past service credit to...

  • Page 36
    ... year 5.3%), reflects corporate bond rates at the year end and has led to a significant reduction in the IAS 19 calculation of the pension liability for accounting purposes at 29 March 2008. The partnership liability to the Marks & Spencer UK Pension scheme of £723.2m (last year £496.9m) relates...

  • Page 37
    ...website. As at 6 May 2008, the Company had been notified under DTR5 of the following significant holdings of voting rights in its shares: Ordinary shares % of share capital Nature of holding Shareholder information Brandes Investment Partners, L.P (21.03.07) Capital Research and Management Company...

  • Page 38
    ... on our website. This standard authority is renewable annually and approval will be sought from shareholders at the 2008 AGM to renew for another year. It is the Company's present intention to cancel any shares it buys back, rather than hold them in treasury. Board of directors The membership...

  • Page 39
    ..., regular meetings, email and Chief Executive broadcasts at key points in the year to all head office employees and store management. These are supplemented by our employee publications including Your M&S magazine and DVD presentations. More than 3,500 employees elected onto Business Involvement...

  • Page 40
    ..., payment of expenses, paid leave for employees fulfilling public duties and support for bodies representing the business community in policy review or reform. At the 2006 AGM shareholders gave a limited authority (£100,000) to the Company and each of the six principal employing companies to...

  • Page 41
    ... 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 Exchange are found in the Combined Code on Corporate Governance which was updated by the Financial Reporting Council in June...

  • Page 42
    ... Chairman. He is resigning from the Board of The British Land Company PLC and resigned from RAB Capital PLC on 18 April 2008 in order to ensure that he can fulfil his commitments. In addition, the non-executive directors will meet independently at least twice a year to keep the governance structure...

  • Page 43
    ... Chairman ensures that the directors receive accurate, timely and clear information. They receive regular updates on business performance against the annual operating plan and investment decisions, together with business reports and presentations from senior management at Board meetings. Directors...

  • Page 44
    ...met five times during the year. The Remuneration Committee's 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 that executive directors and senior management are fairly rewarded for...

  • Page 45
    ... 21 May 2007 due to overseas business commitments already planned prior to his appointment to the M&S Board. Governance Accountability and audit The Group's overriding corporate objective is to maximise long-term shareholder value whilst exceeding the expectations of our customers, employees and...

  • Page 46
    ... of product • A supply base that enables future growth and further strengthens our food credentials • Food more accessible to our customers through new owned and franchised stores • Plan A initiatives, eg differentiated raw materials Adverse effect on financial results Lost market share and...

  • Page 47
    ... financial results Lost market share and customer loyalty • Capability to grow sales via new products and new customers • A focus on improved order fulfilment and customer service INTERNATIONAL: We have ambitious plans to grow our International business through expanding our franchise operation...

  • Page 48
    ... of our financial results and AGM presentations; regulatory announcements; Annual reports; corporate governance and share price information and answers to frequently asked questions. Following shareholder approval in July 2007, the website is now our principal means of communicating with investors...

  • Page 49
    ... website at shareview.co.uk. This offers a number of capabilities ranging from electing to receive communications electronically to checking shareholdings and dividend information online. Many shareholders are also customers and each year we send them Spend and Save vouchers to use in our stores...

  • Page 50
    ...? The remuneration framework is simple and transparent, aligning the reward of our executive directors and senior managers to that of shareholders through a package highly geared towards share incentive plans. The key components are: • salary and benefits; • Annual Bonus Scheme with a compulsory...

  • Page 51
    ... pay and benefits received by the Board? Chairman's remuneration The Chief Executive and other members of the Board determine the Chairman's salary. It reflects the level of commitment and responsibility of the role. The fee has not increased since 1 April 2007 (£450,000, as reported in last year...

  • Page 52
    ... as shown in the table on page 55. All-Employee Share Schemes - Long-term incentive The Company has offered a Save As You Earn (SAYE) scheme called Sharesave since 1981. The scheme was renewed by shareholders at the 2007 AGM for a further 10 years. Executive directors can also participate in this...

  • Page 53
    ...the Board on 1 June 2007. Executive directors Sir Stuart Rose is appointed Executive Chairman with effect from 1 June 2008. All senior managers, including executive directors, have service contracts. These contracts can be terminated by the Company giving 12 months' notice and by the employee giving...

  • Page 54
    ... employee share option schemes is given in note 12 to the financial statements starting on page 75 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 6 May 2008...

  • Page 55
    ... received £76,422 (£73,202 in 2007) payable until 19 November 2008. Governance Financial statements The pension scheme entitlement for Clinton Silver is supplemented by an additional unfunded pension paid by the Company which, for 2008, was £103,233 (£98,873 in 2007). Shareholder information

  • Page 56
    ... PLC Remuneration report continued 2 Directors' interests in long-term incentive schemes Directors' Share Schemes Maximum shares receivable at 31 March 2007 or date of appointment Shares awarded during the year Shares vested during the year Maximum shares receivable at 29 March 2008 Market value...

  • Page 57
    ...explanation of the performance criteria attached to the Performance Share Plan and the Executive Share Option Scheme on page 50 have been audited. Governance Approved by the Board Louise Patten, Chairman of the Remuneration Committee London 19 May 2008 Financial statements Shareholder information

  • Page 58
    ...'s corporate governance procedures or its risk and control procedures. We read other information contained in the Annual report and consider whether it is consistent with the audited financial statements. The other information comprises only the Key performance indicators, the Business review, the...

  • Page 59
    ....4p 39.8p Governance Consolidated statement of recognised income and expense 52 weeks ended 29 March 2008 £m 52 weeks ended 31 March 2007 £m Financial statements Profit for the year Foreign currency translation differences Actuarial gains/(losses) on retirement benefit asset/deficit Cash flow...

  • Page 60
    ... financial 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...

  • Page 61
    ... assets (Increase)/decrease in debt financing Debt financing net of liquid resources disposed with subsidiary Debt financing net of liquid resources acquired with subsidiaries Fair value movement on derivatives Partnership liability to the Marks & Spencer UK Pension Scheme (non-cash) Exchange...

  • Page 62
    ... 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 and other sales taxes. Sales of furniture and online sales are recorded on delivery to the customer. Exceptional items...

  • Page 63
    ... share-based payments to certain employees. A fair value for the equity-settled share awards is measured at the date of grant. The Group measures the fair value of each award using the Black-Scholes model where appropriate. Financial review Governance Financial statements Shareholder information

  • Page 64
    ... value using the retail method, which is computed on the basis of selling price less the appropriate trading margin. 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...

  • Page 65
    ... rate, salary growth, mortality and expected return on scheme assets. Differences arising from actual experiences or future changes in assumptions will be reflected in subsequent periods. See note 11 for further details. Business review Financial review Governance Financial statements Shareholder...

  • Page 66
    ... credit has arisen due to changes in the UK defined benefit plan relating to how members' benefits build up from 1 October 2007. To the extent that members have chosen the option to limit their future pensionable salary increases to inflation there is a past service credit to reflect the impact...

  • Page 67
    ....com/annualreport08 MARKS AND SPENCER GROUP PLC 65 About us 2 Segmental information continued Other segment items: 2008 United Kingdom £m International £m Total £m United Kingdom £m International £m 2007 Total £m Revenue General merchandise Food Expenditure on intangible assets excluding...

  • Page 68
    ...audit-related services Other services pursuant to legislation Tax advisory services Other services 0.3 0.4 0.1 0.8 In addition to the above, fees in respect of the annual audit of the Marks & Spencer UK Pension Scheme were £nil (last year £0.1m). 5 Finance income/costs 2008 £m 2007 £m Finance...

  • Page 69
    .../annualreport08 MARKS AND SPENCER GROUP PLC 67 About us 6 Income tax expense A Taxation charge 2008 £m 2007 £m Current tax UK corporation tax at 30% (last year 30%) - current year - current year tax on exceptional finance costs - prior years Overseas current taxation Total current taxation...

  • Page 70
    ... those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. Details of the adjusted earnings per share are set out below: 2008 £m 2007 £m Earnings after tax Profit from discontinued operation Earnings...

  • Page 71
    ... review 2008 2007 UK stores - management and supervisory categories - other UK head office - management and supervisory categories - other Overseas Total average number of employees 5,267 62,820 2,599 927 3,776 75,389 5,235 64,074 2,396 850 3,316 75,871 Governance If the number of hours worked...

  • Page 72
    70 MARKS AND SPENCER GROUP PLC Notes to the financial statements continued 11 Retirement benefits The Group provides pension arrangements for the benefit of its UK employees through the Marks & Spencer UK Pension Scheme. This has a defined benefit section, which was closed to new entrants with ...

  • Page 73
    ...the Company through its investment in an Aquila Life UK Equity Index Fund. E Analysis of amount charged against profits 2008 £m 2007 £m Financial review Operating cost Current service cost1 Curtailment gain Exceptional pension credit Finance cost Expected return on plan assets Interest on scheme...

  • Page 74
    72 MARKS AND SPENCER GROUP PLC Notes to the financial statements continued 11 Retirement benefits continued F Scheme assets Changes in the fair value of the scheme assets are as follows: 2008 £m 2007 £m Fair value of scheme assets at start of year Expected return on scheme assets1 Employer ...

  • Page 75
    ... option and share schemes that the Group operates are provided in the Remuneration report on pages 48 to 55. A Save As You Earn Share Option Scheme Under 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...

  • Page 76
    ... 12 Share-based payments continued B Executive Share Option Scheme Under the terms of the Executive Share Option Scheme, last approved by shareholders in 2005, the Board may offer options to purchase ordinary shares in the Company to executive directors and senior managers at the market price on...

  • Page 77
    ... below executive director level. Awards under the plan are made as part of ongoing reviews of reward packages, and for recruitment. The shares are held in trust for a period of between one and three years, at which point they are released to the employee, subject to them still being in employment...

  • Page 78
    ... 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 of the per una brand which is being amortised on a straight-line...

  • Page 79
    ...34.4 970.8 29.7 - (79.1) (296.3) 4,704.0 Governance 7,184.8 (2,480.8) 4,704.0 The net book value includes land and buildings of £42.2m (last year £43.7m) and equipment of £35.6m (last year £16.4m) where the Group is a lessee under a finance lease. Financial statements Shareholder information

  • Page 80
    ... 2008 £m 2007 £m At start of year Share of profit At end of year 9.3 0.3 9.6 9.0 0.3 9.3 The joint venture represents a 50% equity interest 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...

  • Page 81
    ...MARKS AND SPENCER GROUP PLC 79 About us 17 Other financial assets 2008 £m 2007 £m Non-current Unlisted investments Current Listed UK securities Unlisted investments 3.0 43.5 5.3 48.8 3.0 46.2 4.7 50.9 Key performance indicators 18 Trade and other receivables 2008 £m 2007 £m Non-current...

  • Page 82
    ... AND SPENCER GROUP PLC Notes to the financial statements continued 21 Borrowings and other financial liabilities 2008 £m 2007 £m Current Bank loans, overdrafts and commercial paper1 Syndicated bank facility2 Finance lease liabilities Partnership liability to the Marks & Spencer UK Pension Scheme...

  • Page 83
    ... the right to buy out the Trustee's partnership interest at any point for an amount equal to the net present value of the remaining annual distributions due to the pension scheme. This year the Group has agreed to pre-fund £200.0m of its annual contribution to the Marks & Spencer UK Pension Scheme...

  • Page 84
    ... as follows: 2008 % 2007 % Committed and uncommitted borrowings Medium term notes Finance leases Partnership liability to the Marks & Spencer UK Pension Scheme 5.5 6.2 5.0 5.7 4.8 5.9 4.4 5.3 22 Financial instruments Treasury policy and financial risk management The Group operates a centralised...

  • Page 85
    ... overseas net assets. Business review Financial review The Group also hedges foreign currency intercompany loans where these exist. Forward foreign exchange contracts in relation to the hedging of the Group's foreign currency intercompany loans are designated as held for trading with fair value...

  • Page 86
    ... MARKS AND SPENCER GROUP PLC Notes to the financial statements continued 22 Financial instruments continued E Sensitivity analysis The table below illustrates the estimated impact on the income statement and equity as a result of market movements in foreign exchange and interest rates in relation...

  • Page 87
    ... indicators Business review Current Non-current Total provisions 11.1 14.6 25.7 5.7 16.8 22.5 The provision for UK restructuring primarily relates to costs of closing Lifestore, restructuring of the Direct operation and head office restructuring. The provision for overseas restructuring costs...

  • Page 88
    86 MARKS AND SPENCER GROUP PLC Notes to the financial statements continued 25 Acquisitions Marinopoulos B.V. £m COMS a.s. £m Total £m Book values Net assets at fair value (100%) Net assets acquired Cash consideration Contingent consideration Transaction costs Total consideration Goodwill ...

  • Page 89
    ...-based payments - Cash flow and net investment hedges - losses deferred in equity - - recycled and reported in net profit - - amount recognised in inventories - - tax on fair value gains - At 31 March 2007 At 1 April 2007 Profit for the year attributable to shareholders Dividends Foreign currency...

  • Page 90
    88 MARKS AND SPENCER GROUP PLC Notes to the financial statements continued 28 Contingencies and commitments A Capital commitments 2008 £m 2007 £m Commitments in respect of properties in the course of construction 182.8 265.8 B Other material contracts In the event of a material change in the...

  • Page 91
    ... flow statement continued C Capital expenditure and financial investment 52 weeks ended 29 March 2008 £m 52 weeks ended 31 March 2007 £m Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible fixed assets Sale of non-current financial...

  • Page 92
    ... cash equivalents Current financial assets (see note 17) Bank loans, overdrafts and commercial paper (see note 21) Syndicated bank facility (see note 21) Medium term notes (see note 21) Finance lease liabilities (see note 21) Partnership liability to the Marks & Spencer UK Pension Scheme (see note...

  • Page 93
    ... the Marks & Spencer Pension Scheme are set out in note 11. D Key management compensation 2008 £m 2007 £m Business review Salaries and short-term benefits Post-employment benefits Termination benefits Share-based payments Total 8.1 0.4 0.4 12.3 21.2 9.6 0.4 - 6.7 Financial review 16.7 Key...

  • Page 94
    92 MARKS AND SPENCER GROUP PLC Company income statement Notes 52 weeks ended 29 March 2008 £m 52 weeks ended 31 March 2007 £m Other operating income Operating profit Income from shares in Group undertakings Finance costs Profit for the year attributable to shareholders C2, C3 C4 0.1 0.1 344.0 ...

  • Page 95
    ... MARKS AND SPENCER GROUP PLC 93 Company statement of changes in shareholders' equity 52 weeks ended 29 March 2008 £m About us 52 weeks ended 31 March 2007 £m Profit attributable to shareholders Dividends Capital contribution for share-based payments Shares purchased in buy back Shares...

  • Page 96
    ... 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 £nil (last year £0.2m) were...

  • Page 97
    ...and Spencer SCM Limited Per Una Group Limited Marks and Spencer Scottish Limited Partnership 1 Marks and Spencer plc is a general partner. Retailing Holding Company Holding Company Holding Company Retailing Retailing Retailing Retailing Financial Services Finance Finance Finance Property Investment...

  • Page 98
    ... IFRS 2008 52 weeks £m IFRS 2007 52 weeks £m IFRS 2006 52 weeks £m IFRS 2005 52 weeks £m UK GAAP 2004 53 weeks £m Income statement Revenue - continuing operations Operating profit - continuing operations UK Retail International Retail Total operating profit Net interest payable Pension finance...

  • Page 99
    ...operating activities Cash flows from investing activities Acquisitions and disposals Capital expenditure and financial investment Interest received Cash flows from investing activities Cash flows from financing... Business review Financial review Governance Financial statements Shareholder information

  • Page 100
    ... post-retirement liability + retail shareholders' funds Operating profit before depreciation and operating lease charges Fixed charges3 Net debt4 (£m) Capital expenditure (£m) 5 43.6p 22.5p 2.3x 40.4p 18.3p 2.1x 31.4p 14.0p 2.2x 19.2p 12.1p 2.9x 24.7p 11.5p 2.1x Return on equity2 45.6% 46...

  • Page 101
    ...buy or sell shares online. Governance Financial statements M&S preferred option The quickest and most efficient way to receive your dividends is to have them paid direct to your bank account. It saves waiting for funds to clear and reduces the paper and postage we use. Those selecting this payment...

  • Page 102
    100 MARKS AND SPENCER GROUP PLC Shareholder information continued Electronic shareholding Shareholders can hold shares electronically in our Corporate nominee account. This: • gives increased security for personal details; • removes the need for a share certificate; and • provides share ...

  • Page 103
    ...64, 92 C Capital commitments 88 Capital expenditure 34, 65, 98 Cash flow statement 59, 93 Chairman's foreword 4 Charitable donations 38 Chief Executive's statement 5 Clothing 11 Corporate governance statement 39 Cost of sales 65 Critical accounting estimates and judgements 63 Customers 3 D Deferred...

  • Page 104
    ....com/annualreport08 This report is printed on Revive uncoated, a 100% recycled paper made from post-consumer collected waste. Revive uncoated is manufactured to the certified environmental management system ISO 14001. Designed by Likemind www.likemindgroup.com Printed by Royle Corporate Print