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66 MARKS AND SPENCER GROUP PLC
Notes to the financial statements
continued
4 Profit before taxation
The following items have been included in arriving at profit before taxation:
2008 2007
£m £m
Net foreign exchange gains (8.0) (3.7)
Depreciation of property, plant, and equipment
– owned assets 290.4 266.8
– under finance leases 5.9 1.7
Amortisation of intangibles 21.3 14.2
Profit on property disposals (27.0) (1.9)
Operating lease rentals payable
– property 167.5 143.4
– fixtures, fittings and equipment 8.4 7.2
Exceptional pension credit (see note 2, 11) (95.0) –
Exceptional finance costs (see note 5) –30.4
Included in administrative expenses is the auditors’ remuneration, including expenses for audit and non-audit services, as follows:
2008 2007
£m £m
Statutory audit services
Annual audit of the Company and the consolidated accounts 0.3 0.3
Audit of subsidiary companies 0.8 0.8
1.1 1.1
Non-audit-related services
Other services pursuant to legislation 0.3 0.1
Tax advisory services 0.4 0.2
Other services 0.1 0.2
0.8 0.5
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 2007
£m £m
Finance income
Bank and other interest receivable 5.5 13.0
Pension finance income (net) (see note 11E) 58.9 20.8
Finance income 64.4 33.8
Finance costs
Interest on bank borrowings 1.6 4.1
Amortisation of issue costs of bank loans 0.3 1.5
Interest payable on syndicated bank facility 30.0 6.8
Interest payable on medium term notes 84.0 77.5
Interest payable on securitised loan notes –19.0
Interest payable on finance leases 3.4 2.2
Dividend on non-equity B shares –0.2
Unwinding of discount on partnership liability to the Marks & Spencer UK Pension Scheme 27.3 1.3
Before exceptional finance costs 146.6 112.6
Exceptional finance costs1–30.4
Finance costs 146.6 143.0
Net finance costs 82.2 109.2
1 Last year exceptional finance costs represented the unamortised transaction costs, a one-off make-whole premium and the cancellation of the swaps arising on the redemption
of £317.2m of secured bonds. These bonds were redeemed in order to release properties for use in the limited partnership with the Marks & Spencer UK Pension Scheme.