Marks and Spencer 2009 Annual Report Download - page 79

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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 for employment, 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.
Essential contracts or arrangements
The Company is required to disclose any contractual or other
arrangements which it considers are essential to its business.
We have a wide range of suppliers for the production and
distribution of products to our customers. Whilst the loss of
or disruption to certain of these arrangements could temporarily
affect the operations of the Group, none are considered to be
essential, with the exception of certain warehouse operators
and the provider of the Company’s e-commerce platform.
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 19 and 26
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
28 March 2009 were 20.5 days, or 13.7 working days (last year
15.3 days, or 10.2 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 fixed assets and leasehold
properties, at 28 March 2009 exceeded their net book value
(including prepayments in respect of leasehold land) by
approximately £0.8m.
Charitable donations
During the year, the Group made charitable donations to support
the community of £12.7m (last year £15m). These principally
consisted of cash donations of £5.4m (last year £5.4m) which
included Breakthrough Breast Cancer, Groundwork, WWF, Shelter,
our Marks & Start programme and local community donations. We
also donated £1.3m (last year £1.9m) of employee time, principally
on Marks & Start and school work experience programmes, and
stock donations of £5.7m (last year £7.5m) to a variety of charities
including Newlife Foundation for Disabled Children and Shelter.
Political donations
It is our policy not to make donations to any political party.
Accordingly neither the Company nor its subsidiaries made any
donation to any registered party or other EU political organisation,
or incurred any EU political expenditure during the year, as defined in
the Political Parties, Elections and Referendums Act 2000 (‘PPERA’)
The PPERA gives wide definitions of what constitutes political
donations and expenditure. Accordingly, as a precautionary
measure, to protect the Company, should the Company
inadvertently breach the legislation, by making a payment which
could be classified as a political donation, approval was granted
at the 2006 AGM for the Company and its five principal employing
companies to make donations to political organisations and to
incur political expenditure up to a maximum of £100,000 per year.
This authority will expire at the 2010 AGM.
Post balance sheet event
On 31 March 2009, Marks and Spencer Reliance India Pvt Limited,
a 51% subsidiary of the Group, completed the acquisition of 100%
of the issued share capital of Supreme Tradelinks Private Limited,
which up until this date was the Group’s franchisee in India, for
cash consideration of £6.5m.
Going concern
In adopting the going concern basis for preparing the financial
statements, the directors have considered the business activities
as set out on pages 1 to 49 as well as the Group’s principal risks
and uncertainties as set out on pages 56 and 57. Based on the
Group’s cash flow forecasts and projections, the Board is satisfied
that the Group will be able to operate within the level of its facilities
for the foreseeable future. For this reason the Group continues to
adopt the going concern basis in preparing its 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 2009 AGM.
Annual General Meeting
The AGM of Marks and Spencer Group plc will be held at the Royal
Festival Hall, Southbank Centre, London on 8 July 2009. The Notice
of AGM is given, together with explanatory notes, in the booklet
which accompanies this report.