Marks and Spencer 2011 Annual Report Download - page 39

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Year ended
2 Apr 11
£m
3 Apr 10
£m
Store modernisation programme 38 75
New stores 151 50
International 31 29
Supply chain and technology 191 194
Maintenance 81 4
Total capital expenditure 492 389
Group capital expenditure for the year was £491.5m. We
continued to invest in our supply chain and technology in line with
our plan to build an infrastructure fit to support the future growth
of the business.
We added c.1.8% of trading space in the UK, on a weighted
average basis, trading from 15.6m sq ft at the end of March 2011.
We opened 20 stores during the year, including 17 Simply Foods.
In our International business we added c.15% of space, trading
from 4.2m sq ft. We opened 49 new stores and closed 15.
Cash flow and net debt
Year ended
2 Apr 11
£m
3 Apr 10
£m
Underlying EBITDA 1,292.4 1,271.8
Working capital 184.0 97.5
Pension funding (91.2) (19.6)
Capex and disposals (450.3) (414.0)
Interest and taxation (327.6) (281.4)
Dividends and share issues/purchases (251.1) (242.6)
Net cash flow 356.2 411.7
Opening net debt (2,068.4) (2,490.8)
Exchange and other non-cash movements (188.7) 10.7
Closing net debt (1,900.9) (2,068.4)
The Group reported a net cash inflow of £356.2m (last year
£411.7m). This inflow reflects the growth in underlying EBITDA and
better working capital management, partly offset by increased
cash contributions to the pension fund in line with the funding plan
announced in May 2010.
Capital expenditure, net of disposals, was £450.3m (last year
£414.0m) reflecting further investment in our supply chain and IT
as well as new space growth. Exchange and other non-cash
movements of £188.7m includes £113.0m in relation to the
transfer of the US$ hedge contracts to the pension fund, as part of
the funding plan, and the recognition of the £71.9m Partnership
liability to the pension fund which was triggered on the approval of
the interim dividend.
Net debt was £1,900.9m, an improvement of £167.5m on last
yearend.
Pensions
At 2 April 2011 the IAS 19 net retirement benefit surplus was
£168.5m (3 April 2010 deficit of £366.5m). The market value of
scheme assets increased by £449.5m, partly due to assets
contributed as part of this year’s funding plan as well as improved
asset performance. In addition, the present value of the scheme
liabilities have fallen due to the change from RPI to CPI for deferred
members leading to a reduction in liabilities of c.£170m.
EBITDA Net cash
generated
Dividends
net of share
issues/
purchases
Interest &
taxation
CapexPension
funding
Working
capital
1,292.4
356.2
(251.1)
(327.6)
(450.3)
(91.2)
184.0
Cash flow
Capital expenditure
Year ended 2 April 2011 Year ended 3 April 2010
Strategy Performance & Marketplace Operating review Governance
Financial statements
& other informationFinancial reviewOverview
To find out more visit marksandspencer.com/annualreport2011 Directors’ report
37