Marks and Spencer 2008 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2008 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

88 MARKS AND SPENCER GROUP PLC
Notes to the financial statements
continued
28 Contingencies and commitments
A Capital commitments
2008 2007
£m £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 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.
2008 2007
£m £m
Total future minimum rentals under non-cancellable operating leases expiring:
Not later than one year 17.9 10.6
Later than one year and not later than five years 90.4 57.4
Later than five years and not later than 25 years 2,223.6 1,778.3
Later than 25 years 1,492.4 1,527.6
Total 3,824.3 3,373.9
The total future sublease payments to be received are £70.5m (last year £68.8m).
29 Analysis of cash flows given in the cash flow statement
A Cash flows from operating activities – continuing
52 weeks 52 weeks
ended ended
29 March 31 March
2008 2007
£m £m
Profit on ordinary activities after taxation 821.0 659.2
Income tax expense 308.1 277.5
Interest payable and similar charges 146.6 143.0
Interest receivable (64.4) (33.8)
Operating profit 1,211.3 1,045.9
Increase in inventories (54.4) (42.8)
(Increase)/decrease in receivables (33.5) 12.5
Payments to acquire leasehold properties (47.6) (13.5)
(Decrease)/increase in payables (61.9) 136.6
Exceptional operating cash outflow (see note 29F) (2.5) (4.2)
Depreciation and amortisation 317.6 282.7
Share-based payments 29.0 27.3
Profit on property disposals (27.0) (1.9)
Exceptional pension credit (95.0) –
Cash generated from operations – continuing 1,236.0 1,442.6
B Cash flows from operating activities – discontinued
Last year £0.7m cash was generated from the discontinued operations of Kings Super Markets Inc.