Marks and Spencer 2010 Annual Report Download - page 92

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Marks and Spencer Group plc Annual report and financial statements 2010 Financial statements 88
Notes to the financial statements continued
4 Profit before taxation continued
Included in administrative expenses is the auditors’ remuneration, including expenses for audit and non-audit services, payable to the
Company’s auditors PricewaterhouseCoopers LLP and its associates as follows:
2010
£m
2009
£m
Statutory audit services
Annual audit of the Company and the consolidated accounts 0.4 0.4
Audit of subsidiary companies 1.0 0.9
1.4 1.3
Non-audit-related services
Other services pursuant to legislation 0.1 0.1
Tax advisory services 0.6 0.3
Other services 0.1 0.2
0.8 0.6
5 Exceptional items
The exceptional costs in 2008/09 related to a strategic restructure and are not regular running costs of the underlying business.
These included: £92.5m property-related costs including onerous lease provisions, property, plant and equipment disposals, leasehold
premium write-offs and decommissioning costs; £32.3m costs related to the rationalisation of IT and logistics networks; and £11.1m
redundancy costs.
The exceptional pension credit in 2008/09 arose due to changes in the UK Defined Benefit Pension Scheme relating to how members’
benefits build up. In January 2009 the Group announced that it had made changes to the scheme by capping employees’ annual increases
in pensionable pay to 1% and changing the early retirement benefits for members who joined the scheme before 1996. There was a credit
to the income statement to reflect the impact of adjusting employees’ projected final pensionable salaries.
There are no exceptional costs arising in the current year.
6 Finance income/costs
2010
£m
2009
£m
Bank and other interest receivable 2.1 14.6
Pension finance income (net) (see note 11E) 10.8 35.4
Finance income 12.9 50.0
One-off premium on repurchase of debt (see note 21) 13.5 –
Interest on bank borrowings 7.1 6.2
Interest payable on syndicated bank facility 5.9 41.0
Interest payable on medium-term notes 117.9 113.9
Interest payable on finance leases 5.3 4.9
Fair value movements on financial instruments designated as fair value through profit and loss 8.5 10.5
Unwinding of discount on partnership liability to the Marks & Spencer UK Pension Scheme 4.0 38.0
Finance costs 162.2 214.5
Net finance costs 149.3 164.5