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Directors’ report p01
Financial statements
Other information p117
To find out more, visit www.marksandspencer.com/annualreport2010 87
3 Expense analysis
2010 2009
Before
property
disposals
and
exceptional
items
£m
Property
disposals
and
exceptional
items
£m
Total
£m
Before
property
disposals
and
exceptional
items
£m
Property
disposals
and
exceptional
items
£m
Total
£m
Revenue 9,536.6 –9,536.6 9,062.1 – 9,062.1
Cost of sales (5,918.1) –(5,918.1) (5,690.2) – (5,690.2)
Gross profit 3,618.5 –3,618.5 3,371.9 – 3,371.9
Selling and marketing expenses (2,216.6) –(2,216.6) (2,074.4) – (2,074.4)
Administrative expenses (614.9) –(614.9) (570.1) – (570.1)
Other operating income 56.9 –56.9 41.5 – 41.5
Profit on property disposals –8.1 8.1 – 6.4 6.4
Exceptional costs (see note 5) – – – – (135.9) (135.9)
Exceptional pension credit (see note 5) – – – – 231.3 231.3
Operating profit 843.9 8.1 852.0 768.9 101.8 870.7
The selling and marketing expenses and administrative expenses in the table above are further analysed in the table below:
2010 2009
Selling and
marketing
expenses
£m
Adminis-
trative
expenses
£m
Total
£m
Selling and
marketing
expenses
£m
Adminis-
trative
expenses
£m
Total
£m
Employee costs (see note 10A) 1,007.5 251.9 1,259.4 923.2 231.1 1,154.3
Occupancy costs 463.2 81.7 544.9 439.2 77.5 516.7
Repairs, renewals and maintenance of property 88.3 22.1 110.4 76.6 19.1 95.7
Depreciation 354.8 39.4 394.2 343.5 38.2 381.7
Amortisation 30.3 3.4 33.7 24.6 2.7 27.3
Other costs 272.5 216.4 488.9 267.3 201.5 468.8
Operating expenses 2,216.6 614.9 2,831.5 2,074.4 570.1 2,644.5
4 Profit before taxation
The following items have been included in arriving at profit before taxation:
2010
£m
2009
£m
Net foreign exchange (gains)/losses (2.9) 3.6
Cost of inventories recognised as an expense 5,683.5 5,426.7
Depreciation of property, plant, and equipment
– owned assets 380.4 371.5
– under finance leases 13.8 10.2
Amortisation of intangibles 33.7 27.3
Profit on property disposals (8.1) (6.4)
Operating lease rentals payable
– property 220.7 200.5
– fixtures, fittings and equipment 10.8 10.1
Exceptional costs (see note 5) –135.9
Exceptional pension credit (see note 5) –(231.3)