Marks and Spencer 2008 Annual Report Download - page 40

The Group is responsive to the needs of its employees,
customers and the community at large and we are an
organisation that endeavours to use everyone’s talents
and abilities to the full.
Employees with disabilities
It is our policy that people with disabilities should have full
and fair consideration for all vacancies. During the year, we
continued to demonstrate our commitment to interviewing
those people with disabilities who fulfil the minimum criteria,
and endeavouring to retain employees in the workforce if they
become disabled during employment. We will actively retrain
and adjust their environment where possible to allow them to
maximise their potential.
We continue to work with external organisations to provide
workplace opportunities through our innovative Marks & Start
scheme and by working closely with jobCentrePlus.
Creditor payment policy
For all trade creditors, it is the Group’s policy to:
• agree the terms of payment at the start of business with
that supplier;
• ensure that suppliers are aware of the terms of payment; and
• pay in accordance with its contractual and other legal
obligations.
The main trading company, Marks and Spencer plc, has a
policy concerning the payment of trade creditors as follows:
• general merchandise payments are received between
16 and 23 days after the stock was delivered;
• food payments are received between 18 and 25 days
after the stock was delivered; and
• distribution suppliers are paid monthly, for costs incurred
in that month, based on estimates, and payments are
adjusted quarterly to reflect any variations to estimate.
Trade creditor days for Marks and Spencer plc for the year
ended 29 March 2008 were 15.3 days, or 10.2 working
days (last year 14.7 days, or 9.8 working days), based on
the ratio of Company trade creditors at the end of the year
to the amounts invoiced during the year by trade creditors.
Market value of properties
The last formal valuation of the Group’s properties was carried
out in September 2006. Taking into account movements in
the Group’s property portfolio since that date, the directors are
of the opinion that the market value of the Group’s properties,
at 29 March 2008 exceeded their net book value (including
prepayments in respect of leasehold land) of the fixed asset
and leasehold properties by approximately £1.0bn.
Charitable donations
During the year, the Group made charitable donations
to support the community of £15m (last year £13.9m).
These principally consisted of cash donations of £5.4m (last
year £3.8m) which includes our ‘Marks & Start’ community
programme, Breakthrough Breast Cancer, Save The Children,
World Wildlife Fund, and local community donations, £1.9m
(last year £3m) of employee time, principally on Marks & Start
and school work experience programmes, and stock
donations of £7.5m (last year £6.6m) to a variety of charities
including Shelter, FareShare and The Birth Defects Foundation.
Political donations
It is our policy not to make donations for political purposes
in the UK, to EU political parties or to incur EU political
expenditure. Accordingly, the Company and its subsidiaries
did not give any money for political purposes in the UK nor
did they make any donations to EU political organisations
or incur any EU political expenditure during the year.
Under the provisions of the Political Parties, Elections and
Referendums Act 2000, shareholder authority is required for
political donations to be made or political expenditure to be
incurred by the Company or any of its subsidiaries in the EU
and disclose any such payments in the Annual report. The
legislation gives a wide definition of what constitutes political
donations 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.
At the 2006 AGM shareholders gave a limited authority
(£100,000) to the Company and each of the six principal
employing companies to make political donations or to incur
political expenditure in the EU (which would not ordinarily be
regarded as political donations) as a precautionary measure,
to allow the Company to continue supporting the community
and such organisations without inadvertently breaching the
legislation. This authority will expire in 2010.
Going concern
After making enquiries, the directors have a reasonable
expectation that the Company and Group has adequate
resources to continue in operational existence for the
foreseeable future. For this reason, they have adopted the
going concern basis in preparing the financial statements.
Auditors
Resolutions to reappoint PricewaterhouseCoopers LLP
as auditors of the Company and to authorise the Audit
Committee to determine their remuneration will be proposed
at the 2008 AGM.
Annual general meeting
The AGM of Marks and Spencer Group plc will be held at
the Royal Festival Hall, London on 9 July 2008. The Notice
is given, together with explanatory notes, in the booklet which
accompanies this report.
By order of the Board
Graham Oakley, Group Secretary
London
19 May 2008
38 MARKS AND SPENCER GROUP PLC
Group Directors’ report
continued