Marks and Spencer 2009 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2009 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 126

  • 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
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

Marks and Spencer Group plc Annual report and financial statements 2009 Financial statements
Notes to the financial statements
continued
106
22 Financial instruments continued
Capital policy
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns
for shareholders and benefits for other stakeholders and to maintain a capital structure that optimises the cost of capital. In order to maintain
or adjust the capital structure the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt.
23 Provisions
UK
restructuring
£m
Overseas
restructuring
£m Total
£m
At 1 April 2007 14.1 8.4 22.5
Provided in the year 11.5 0.1 11.6
Released in the year (3.2) (2.0) (5.2)
Utilised during the year (4.2) (0.3) (4.5)
Exchange differences – 1.3 1.3
At 29 March 2008 18.2 7.5 25.7
At 30 March 2008 18.2 7.5 25.7
Provided in the year 86.6 –86.6
Released in the year (0.7) –(0.7)
Utilised during the year (8.5) (0.6) (9.1)
Exchange differences – 1.3 1.3
At 28 March 2009 95.6 8.2 103.8
Analysis of total provisions:
2009
£m
2008
£m
Current 63.6 11.1
Non-current 40.2 14.6
Total provisions 103.8 25.7
The provision for UK restructuring is comprised of exceptional costs related to the strategic restructure (see note 5), including onerous leases
and redundancies, as well as costs of closing Lifestore. The provision for overseas restructuring costs primarily relates to future closure costs
in respect of discontinued operations in Continental Europe.
The current element of the provision primarily relates to redundancy costs, costs relating to the rationalisation of IT and logistics networks,
and costs of closing Lifestore.
The non-current element of the provision relates to store closures, primarily onerous leases, and the closure costs of discontinued operations
in Continental Europe, and are expected to be utilised over a period of eight years.