Marks and Spencer 2009 Annual Report Download - page 113

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109
27 Contingencies and commitments
A. Capital commitments
2009
£m
2008
£m
Commitments in respect of properties in the course of construction 52.1 182.8
In respect of its interest in a joint venture (see note 16), the joint venture is committed to incur capital expenditure of £31.9m (last year nil), of
which the Group’s share of this commitment is £19.3m (last year nil).
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.
2009
£m
2008
£m
Total future minimum rentals under non-cancellable operating leases expiring:
Not later than one year 44.0 17.9
Later than one year and not later than five years 178.5 90.4
Later than five years and not later than 25 years 2,464.4 2,223.6
Later than 25 years 1,488.0 1,551.1
Total 4,174.9 3,883.0
The total future sublease payments to be received are £64.9m (last year £70.5m).
28 Analysis of cash flows given in the cash flow statement
Cash flows from operating activities
52 weeks
ended
28 March
2009
£m
52 weeks
ended
29 March
2008
£m
Profit on ordinary activities after taxation 506.8 821.0
Income tax expense 199.4 308.1
Interest payable and similar charges 214.5 146.6
Interest receivable (50.0) (64.4)
Operating profit 870.7 1,211.3
Increase in inventories (46.0) (54.4)
Decrease/(increase) in receivables 55.0 (33.5)
Payments to acquire leasehold properties (14.1) (47.6)
Increase/(decrease) in payables 212.2 (61.9)
Exceptional operating cash outflow (27.4) (2.5)
Depreciation and amortisation 409.0 317.6
Share-based payments 14.3 29.0
Profit on property disposals (6.4) (27.0)
Exceptional costs 135.9 –
Exceptional pension credit (231.3) (95.0)
Cash generated from operations 1,371.9 1,236.0
Exceptional operating cash outflows related to UK restructuring costs £26.9m (last year £2.2m) and the closure of European operations
£0.5m (last year £0.3m).