Marks and Spencer 2012 Annual Report Download

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Annual report and financial statements 2012

Table of contents

  • Page 1
    Annual report and financial statements 2012

  • Page 2
    ..., great value food and are the UK market leaders in womenswear, lingerie and menswear. Clothing & Home revenue However they shop with us - in stores, online or by phone - we aim to provide the best and most convenient shopping experience for our customers, from purchase through to delivery. Multi...

  • Page 3
    ... its shareholders Directors' report 02 04 07 Strategic review Chief Executive's overview - Our plan in action - Performance against our plan - People behind the plan Our plan in action Focus on the UK - Our brand - Clothing and Home - Food - UK stores Multi-channel International Plan A Our people...

  • Page 4
    Overview Marks and Spencer Group plc Annual report and financial statements 2012 02 Chairman's statement My first full year as Chairman has been one of continued progress for M&S. Our executive team has driven forward our business plans with consistency and pace. The strategy, set out by Marc ...

  • Page 5
    ... Marks and Spencer Group plc Annual report and financial statements 2012 03 Overview Strategic review Our governance principles Leadership Strategy, performance, responsibility and accountability are at the heart of your Board's discussions. We interrogate each area to ensure high-quality...

  • Page 6
    ... Marks and Spencer Group plc Annual report and financial statements 2012 04 Marketplace Understanding the way our customers think and the factors that inï¬,uence their shopping behaviour is key to our success. Our Customer Insight Unit (CIU) uses a combination of customer analytics and research...

  • Page 7
    Overview Marks and Spencer Group plc Annual report and financial statements 2012 05 Overview Strategic review GFK CONSUMER CONFIDENCE INDEX 10 5 0 -5 -10 -15 -20 -25 -30 -35 -40 -45 Jun Jun Jun Jun Jun Jun Jun Sep Sep Jun Sep Dec ...

  • Page 8
    Overview Marks and Spencer Group plc Annual report and financial statements 2012 06 Marketplace continued MULTI-CHANNEL SALES 600 500 Revenue £m 400 300 Our strategy is aligned with these growth opportunities and we are focusing our expansion on existing markets such as India, the Middle ...

  • Page 9
    Overview Marks and Spencer Group plc Annual report and financial statements 2012 07 Overview How M&S creates value for its shareholders Over the last 128 years M&S has grown from a market stall to a multi-channel retailer with over 1,100 stores worldwide, employing more than 81,000 people. We ...

  • Page 10
    ... and Spencer Group plc Annual report and financial statements 2012 08 Chief Executive's overview In 2011/12 M&S has performed well, with sales increasing by 2%. In a challenging environment, we held market share, as our customers continued to recognise our exceptional value and unrivalled quality...

  • Page 11
    ...Marks and Spencer Group plc Annual report and financial statements 2012 09 Overview Strategic review OUR PLAN By 2015 Drive UK like-for-like growth UK space and like-for-like growth International multi-channel retailer Drive international presence International company In-store environments...

  • Page 12
    Strategic review Chief Executive's overview Marks and Spencer Group plc Annual report and financial statements 2012 10 Our plan in action Our aim is to make M&S a truly international, multi-channel retailer - accessible to even more customers around the world. We have created considerable ...

  • Page 13
    ...Marks and Spencer Group plc Annual report and financial statements 2012 11 Overview Strategic review Relaunch of clothing sub-brands We relaunched our sub-brands, giving each a more distinctive identity. 1,900 new food lines We launched 1,900 innovative new products, including 100 international...

  • Page 14
    Strategic review Chief Executive's overview Marks and Spencer Group plc Annual report and financial statements 2012 12 Performance against our plan Key Performance Indicators Financial performance GROUP REVENUE UNDERLYING GROUP OPERATING PROFIT 2.0% £9.9bn £m UK International Total £810.0m...

  • Page 15
    Strategic review Chief Executive's overview Marks and Spencer Group plc Annual report and financial statements 2012 13 Overview Strategic review UNDERLYING GROUP PROFIT BEFORE TAX RETURN ON CAPITAL EMPLOYED 10/11 (£714.3m) 09/10 (£694.6m) 08/09 (£604.4m) £705.9m GROUP PROFIT BEFORE TAX ...

  • Page 16
    ... review Chief Executive's overview Marks and Spencer Group plc Annual report and financial statements 2012 14 People behind the plan Management committee "We're making it easier for customers to see the great quality, value and style we offer." "It's not just the products that make M&S special...

  • Page 17
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 15 Overview Our plan in action Focus on the UK Strategic review Last year we set out plans to invest in our UK business and enhance our already strong position in our home market. This programme is now ...

  • Page 18
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2012 16 Our brand In such a competitive marketplace, it's been more important than ever to highlight the great value and quality we offer across M&S. This year, our campaigns served a dual purpose...

  • Page 19
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2012 17 Overview CUSTOMER INSIGHT "The Autograph campaign feels stylish, contemporary and chic." Autograph Our new faces perfectly encapsulate the elegance, sophistication and contemporary feel ...

  • Page 20
    ...Marks and Spencer Group plc Annual report and financial statements 2012 18 Clothing and Home In a highly competitive market, M&S remains the UK's first choice for clothing. Customers appreciated our interpretations of seasonal trends, underpinned by our continued focus on great value and quality...

  • Page 21
    ... existing ranges and teamed up with Ragdale Hall to create a new luxury Spa collection, with prices starting from just £6. Style M&S Woman The ad campaign featuring Twiggy and Lisa Snowdon placed our stylish wardrobe 'must haves' firmly in the spotlight. Governance Financial statements and...

  • Page 22
    ...Annual report and financial statements 2012 20 Clothing and Home continued Menswear Menswear delivered another good year, growing market share and improving its style credentials. The newly defined sub-brands helped reduce duplication across our ranges and enabled customers to more easily locate...

  • Page 23
    ... on the UK Marks and Spencer Group plc Annual report and financial statements 2012 21 Overview Food Strategic review Our Food business performed strongly in a tough market with total sales up 3.9% to £4.7bn and like-for-like sales up 2.1%. We maintained our focus on freshness, speciality and...

  • Page 24
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2012 22 Food continued Deli and bakeries With a focus on speciality breads, our new bakeries have a rustic, authentic feel. They provide freshly baked goods throughout the day and sales are up 25...

  • Page 25
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2012 23 Overview Strategic review Though budgets were stretched, customers didn't want to cut back on quality. This year we highlighted our great value through bigger, higher impact promotions. ...

  • Page 26
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2012 24 UK stores This year we began work on delivering a more inspiring shopping experience to the 20 million customers that visit our stores every week. As we rolled out our new store format, we...

  • Page 27
    Strategic review Focus on the UK CUSTOMER INSIGHT Marks and Spencer Group plc Annual report and financial statements 2012 25 Overview "I love hearing about all the new things in store - the employees are really knowledgeable about the products." Westfield Stratford City Arranged over four ...

  • Page 28
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 26 Multi-channel This year we grew ahead of the market, with sales increasing 18%, as customers found it easier to shop with us in the way that suits them best. New innovations helped us better integrate our...

  • Page 29
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 27 Overview M&S Outlet online Our successful M&S Outlet format was launched online, offering even more customers access to fantastic discounts on our clothing ranges. The site received over 1.1 million ...

  • Page 30
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 28 International Our International business continued to grow, with sales up 5.8% to £1.1bn. This year we added 26 stores to our portfolio and entered new markets, giving us a total of 387 stores across 43 ...

  • Page 31
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 29 Overview Addressing key issues We placed an experienced M&S retail team in our Czech operations to help refocus the business. We realigned pricing and introduced a new look format to our Prague store. ...

  • Page 32
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 30 Plan A Plan A is about doing the right thing - and encouraging our employees and customers to join us. In 2011/12, Plan A continued to make us more efficient; contributing £105m net benefit back into ...

  • Page 33
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 31 Overview Strategic review Supplier training We've worked with Oxfam and Business in the Community to develop ways of measuring community health and prosperity in our supply chains. Since 2010, we have ...

  • Page 34
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 32 Our people Our people are at the very heart of our business; responsible for delivering our business plans and making M&S special for our customers. We employ over 81,000 people around the world and ...

  • Page 35
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 33 Overview M&S People System Our new online system has introduced more efficient processes to our stores and offices. Employees can now remotely book time off and around 90% have opted to receive online ...

  • Page 36
    ... Marks and Spencer Group plc Annual report and financial statements 2012 34 Financial review Despite a challenging trading environment, M&S has performed well in 2011/12. Sales were 2.0% ahead of last year and underlying profit before tax was £705.9m (last year £714.3m). Underlying earnings...

  • Page 37
    Financial review Marks and Spencer Group plc Annual report and financial statements 2012 35 Overview Strategic review Summary of results 52 weeks ended 31 March 2012 £m 2 April 2011 £m % variance Group revenue UK International Underlying operating profit UK International Underlying profit ...

  • Page 38
    ...business to London. The cumulative strategic programme costs incurred since the strategy was announced are now £34m. Net finance costs 52 weeks ended 31 March 2012 £m 2 April 2011 £m Focus on the UK Multi-channel New stores Store modernisation programme International Supply chain and technology...

  • Page 39
    Financial review Marks and Spencer Group plc Annual report and financial statements 2012 37 Overview Strategic review 800 International Multi-channel RUN RATE Focus on UK Run Rate 600 £m 400 On 21 May 2012 the Group changed the terms of the Scottish Limited Partnership (the Partnership) to...

  • Page 40
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 38 Governance Chairman's overview Robert Swannell "The Board is the guardian of the M&S brand, its reputation and stakeholder relationships. If we continue to do the right thing, the right way, with integrity and...

  • Page 41
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 39 Overview Strategic review Our Committees and Committee chairmen Executive Board Marc Bolland business and technology. Laura, Vindi and Miranda each had extensive induction programmes on joining the Board. ...

  • Page 42
    ... experience of M&S to the Board as a result of his long history with the Company. He joined as a store management trainee and has worked in a variety of senior roles across the business, including internationally-based retail roles, Executive Assistant to the Chief Executive and Director of Multi...

  • Page 43
    ... Spencer Group plc Annual report and financial statements 2012 41 Overview Strategic review Martha Lane Fox Non-executive director Appointed in June 2007. Martha's considerable expertise in e-commerce and experience in the successful operation of online and consumer-facing businesses is helping...

  • Page 44
    .... Driving strategy The Board approved a number of significant strategic developments and investments during the year. These included the new platform for our online business, European websites in France and Ireland, a number of new stores, investment and review of our new store format programme...

  • Page 45
    ... Involvement Groups, director presentations, the Annual Business Conference for store and senior management and informal director roundtable discussions. Employee feedback from such events is discussed by the Board giving useful insight into employee morale and their reactions. Financial review...

  • Page 46
    .... This includes time with the Group Secretary, each of the executive directors, members of the Management Committee and a wide range of senior management from across the business. During the year we supported induction programmes for Laura Wade-Gery, Executive Director Multi-channel E-commerce and...

  • Page 47
    ... position Key supplier failure CHANGING/NEW Financial statements and other information Distribution centre restructure Corporate reputation Food safety Our customers IT security GM stock management Our people International INTERNAL Multi-channel Programme and workstream management New store...

  • Page 48
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 46 Accountability continued Description Mitigating activities Finance We continue to focus on maintaining a strong financial position that supports improvements to our business. Economic outlook Worsening ...

  • Page 49
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 47 Overview Strategic review Description Mitigating activities Selling channels We have ambitious plans for our UK, International and Multi-channel businesses as part of our commitment to becoming a leading ...

  • Page 50
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 48 Accountability continued Risk interconnectivity Over time, globalisation, changing business models and technological advances have resulted in a business environment increasingly interconnected through systems...

  • Page 51
    ... Marks and Spencer Group plc Annual report and financial statements 2012 49 Overview Engagement Strategic review Robert Swannell, Chairman Understanding differing opinions is a key part of driving our business forward. We are very interested in understanding the views of our investors...

  • Page 52
    ... Stock Exchange announcements and press release alerts; - Annual Report and Investor presentations; - Detailed account of how we have complied with the UK Corporate Governance Code 2010; - Our full Governance Framework, including Committee Terms of Reference and director accountabilities; - Our Code...

  • Page 53
    ...his retirement from the Board; - Created a clear framework to review succession planning and development for the executive director team and the Board for the medium term; and - Supported greater engagement with key managers with non-executive director-only meetings. What is the action plan for 2012...

  • Page 54
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 52 Audit Committee Chairman's overview Jeremy Darroch Last year I advised that we would work with the Board to review any changes to the risk profile and support the Board debate on risk tolerance and appetite. ...

  • Page 55
    ...the business. Data security Updates relating to our investment in IT security, building of the new retail website platform and the move from the current platform supported by Amazon. International activities, user access and the controls around the protection of personal data. Policies were reviewed...

  • Page 56
    ...support from the Chairman, Group Secretary, Director of Human Resources and Head of Employee Relations and Reward, all of whom may attend the Committee meetings by invitation, but are not present for any discussions that relate directly to their own remuneration. The Committee also regularly reviews...

  • Page 57
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 55 Overview Part 1: unaudited information Strategic review Effectiveness of the Remuneration Committee Who's on our Committee? The following independent non-executive directors were members of the Committee ...

  • Page 58
    ... - aligned to shareholder interests and specifically with the Company's stated strategic objectives. - targets based on cumulative EPS (Earnings Per Share), ROCE (Return on Capital Employed), and Revenue growth across UK, International and Multi-channel business segments Delivery in 2012/13 - bonus...

  • Page 59
    ... Marks and Spencer Group plc Annual report and financial statements 2012 57 Overview Strategic review Senior remuneration framework How is the senior remuneration framework aligned to Company strategy? The Committee carried out a full and comprehensive review of the senior remuneration...

  • Page 60
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 58 Remuneration report continued What are the details of fixed remuneration? Executive directors Salary In reviewing executive director salary levels for 2012, the Committee considered current market conditions,...

  • Page 61
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 59 Overview Strategic review Individual objectives The setting of quantifiable and challenging individual objectives and the associated performance targets are subject to rigorous annual review by the Committee ...

  • Page 62
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 60 Remuneration report continued Executive Share Option Scheme: long-term incentive The scheme was adopted at the 2005 AGM, but there is currently no intention to use the scheme on a regular basis. No grants have...

  • Page 63
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 61 Overview Strategic review Group PBT objective (60% of total) As in previous years, Group PBT targets were set by the Committee at the start of the year by reference to the Company's own internal operating plan...

  • Page 64
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 62 Remuneration report continued Performance Share Plan outcome for 2011/12 2009 Award Final Measurement The underlying basic EPS figure for 2011/12 was 34.9p which was above the 'threshold' target of RPI+3% but ...

  • Page 65
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 63 Overview Strategic review What are the current service contracts and terms of employment for directors? Executive directors All executive directors and senior managers have service contracts that can be ...

  • Page 66
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 64 Remuneration report continued What is the shareholding policy for executive directors? All executive directors are required to hold shares equivalent in value to a minimum percentage of their salary (200% for ...

  • Page 67
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 65 Overview Part 2: audited information Strategic review Directors' emoluments Salary/fee1 £000 Cash allowance2 £000 Compensatory awards3 £000 Benefits4 £000 Dividend equivalents £000 Bonus5 £000 Total ...

  • Page 68
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 66 Remuneration report continued Directors' interests in long-term incentive schemes Maximum options receivable at 3 April 2011 or date of appointment Share price on date of award (p) Share price on date of ...

  • Page 69
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 67 Overview Strategic review Directors' interests in long-term incentive schemes (continued) Maximum options receivable at 3 April 2011 or date of appointment Share price on date of award (p) Share price on date ...

  • Page 70
    ... and Spencer Group plc Annual report and financial statements 2012 68 Other disclosures Principal activities and Business review Marks and Spencer Group plc (the 'Company') is the holding company of the Marks & Spencer Group of companies (the 'Group'). Marks & Spencer is the UK's largest clothing...

  • Page 71
    ... the Save As You Earn (SAYE) Share Option and Executive Share Option Schemes are shown on pages 66 to 67. Further information regarding employee share option schemes is given in note 13 to the financial statements. Laura Wade-Gery joined the Board on 4 July 2011 as Executive Director, Multi-channel...

  • Page 72
    ... employee involvement throughout the business. Employees are kept well informed of the performance and strategy of the Group through personal briefings, regular meetings, personal letters home, email and broadcasts by the Chief Executive and members of the Board at key points in the year to all head...

  • Page 73
    ... of M&S support and employee and customer donations. Financial statements and other information - the terms and conditions which govern the trading relationship between M&S and those of its suppliers that supply groceries to M&S incorporate GSCOP; - new suppliers are issued with information as...

  • Page 74
    Governance Marks and Spencer Group plc Annual report and financial statements 2012 72 Other Disclosures continued 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 37 as well ...

  • Page 75
    ...Annual report and financial statements 2012 73 Overview Independent auditors' report to the members of Marks and Spencer Group plc Strategic review We have audited the financial statements of Marks and Spencer Group plc for the 52 weeks ended 31 March 2012 which comprise the Consolidated income...

  • Page 76
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 74 Consolidated income statement Notes 52 weeks ended 31 March 2012 £m 52 weeks ended 2 April 2011 £m Revenue Operating profit Finance income Finance costs Profit before tax Income tax expense ...

  • Page 77
    ... Marks and Spencer Group plc Annual report and financial statements 2012 75 Overview Consolidated statement of financial position Strategic review Notes As at 31 March 2012 £m As at 2 April 2011 £m Assets Non-current assets Intangible assets Property, plant and equipment Investment...

  • Page 78
    ... statements Marks and Spencer Group plc Annual report and financial statements 2012 76 Consolidated statement of changes in equity Ordinary share capital £m Share premium account £m Capital redemption reserve £m Hedging reserve £m Other reserve1 £m Retained earnings2 £m Total...

  • Page 79
    ... of medium-term notes Monetisation of derivative assets Decrease in obligations under finance leases Payment of liability to the Marks & Spencer UK Pension Scheme Equity dividends paid Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in...

  • Page 80
    ... of consolidation The Group financial statements incorporate the financial statements of Marks and Spencer Group plc and all its subsidiaries made up to the year end date. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line...

  • Page 81
    ... average of monthly exchange rates for revenue and profits. The statements of financial position of overseas subsidiaries are translated at year end exchange rates. The resulting exchange differences are dealt with through reserves and reported in the consolidated statement of comprehensive income...

  • Page 82
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 80 Notes to the financial statements continued 1 Accounting policies continued Taxation continued Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax ...

  • Page 83
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 81 Overview Strategic review 1 Accounting policies continued B. Fair value hedges For an effective hedge of an exposure to changes in the fair value, the hedged item is adjusted for changes in fair ...

  • Page 84
    ... on changes of the defined benefit pension schemes, non-cash fair value movements in financial instruments and costs relating to strategic changes that are not considered normal operating costs of the underlying business (see note 5). Other segmental information 2012 UK £m International £m Total...

  • Page 85
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 83 Overview Strategic review 3 Expense analysis 2012 Underlying £m Adjustments £m Total £m Underlying £m Adjustments £m 2011 Total £m Revenue Cost of sales Gross profit Selling and ...

  • Page 86
    ...Strategic programme costs relate to the strategy announcements made in November 2010 and include the costs associated with the Focus on the UK plans. This includes brand segmentation and business integration costs, asset write-offs, accelerated depreciation and exit from technology in the prior year...

  • Page 87
    ...Marks and Spencer Group plc Annual report and financial statements 2012 85 Overview Strategic review 7 Income tax expense A. Tax charge 2012 £m 2011 £m Current tax UK corporation tax on profits for the year - current year - adjustments in respect of prior years UK current tax Overseas current...

  • Page 88
    ... Marks and Spencer Group plc Annual report and financial statements 2012 86 Notes to the financial statements continued 8 Earnings per share The calculation of earnings per ordinary share is based on earnings after tax and the weighted average number of ordinary shares in issue during the year...

  • Page 89
    ... Spencer Group plc Annual report and financial statements 2012 87 Overview Strategic review 10 Employees A. Aggregate remuneration The aggregate remuneration and associated costs of Group employees were: 2012 Total £m 2011 Total £m Wages and salaries Social security costs Pension costs Share...

  • Page 90
    ... Group plc Annual report and financial statements 2012 88 Notes to the financial statements continued 11 Retirement benefits continued A. Pensions and other post-retirement liabilities 2012 £m 2011 £m Total market value of assets Present value of scheme liabilities Net funded pension plan...

  • Page 91
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 89 Overview Strategic review 11 Retirement benefits continued D. Analysis of assets and expected rates of return The major categories of assets as a percentage of total plan assets are: 2012 £m 2011 ...

  • Page 92
    ... Changes in the present value of retirement benefit obligations are as follows: 2012 £m 2011 £m Present value of obligation at start of year Current service cost Curtailment charge One-off pension credit (see note 5) Interest cost Contributions from scheme members Benefits paid Actuarial...

  • Page 93
    ... Remuneration report on pages 59 to 60. A. Save As You Earn Share Option Scheme Under the terms of the scheme, the Board may offer options to purchase ordinary shares in the Company once in each financial year to those employees who enter into an HM Revenue & Customs (HMRC) approved Save As You Earn...

  • Page 94
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 92 Notes to the financial statements continued 13 Share-based payments continued The fair values of the options granted during the year have been calculated using the Black-Scholes model assuming the ...

  • Page 95
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 93 Overview Strategic review 13 Share-based payments continued E. Republic of Ireland Save As You Earn Scheme Sharesave, the Company's Save As You Earn Scheme was introduced in 2009 to all employees in ...

  • Page 96
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 94 Notes to the financial statements continued 14 Intangible assets Goodwill £m Brands £m Computer software £m Computer software under development £m Total £m At 3 April 2010 Cost or valuation ...

  • Page 97
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 95 Overview Strategic review 14 Intangible assets continued Based on the above assumptions and due to the current economic environment in Greece and neighbouring countries, the Marks and Spencer ...

  • Page 98
    ...using Level 2 valuation techniques. Non-current unlisted investments are carried as available-for-sale assets. Other financial assets are measured at fair value with changes in their value taken to the income statement. 17 Trade and other receivables 2012 £m 2011 £m Non-current Other receivables...

  • Page 99
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 97 Overview Strategic review 20 Borrowings and other financial liabilities 2012 £m 2011 £m Current Bank loans and overdrafts1 6.375% £308m medium-term notes 20112 5.875% £267m medium-term notes ...

  • Page 100
    ... and the partnership liability to the Marks & Spencer UK Pension Scheme (see note 12). The present value of finance lease liabilities is as follows: 2012 £m 2011 £m Within one year Later than one year and not later than five years Later than five years Total (8.7) (8.7) (48.1) (65.5) (12.4) (17...

  • Page 101
    ...-term payables, the liability to the Marks & Spencer UK Pension Scheme and the Marks and Spencer Czech Republic a.s. put option, is set out below: 2012 Fixed rate £m Floating rate £m Total £m Fixed rate £m Floating rate £m 2011 Total £m Governance Financial statements and other information...

  • Page 102
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 100 Notes to the financial statements continued 21 Financial instruments continued The floating rate sterling and euro borrowings are linked to interest rates related to LIBOR. These rates are for ...

  • Page 103
    ... 2 £m Level 3 £m 2011 Total £m Financial statements and other information Assets measured at fair value Financial assets at fair value through profit and loss - Trading derivatives Derivatives used for hedging Embedded derivatives (note 5) Available-for-sale financial assets - equity securities...

  • Page 104
    ... paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. 22 Provisions 2012 £m 2011 £m At start of year Provided in the year Released in the year Utilised during the year Exchange differences At end of year Analysis of provisions: Current Non-current...

  • Page 105
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 103 Overview Strategic review 23 Deferred tax Deferred tax is provided under the balance sheet liability method using a tax rate of 24% (last year 26%) for UK differences and local tax rates for ...

  • Page 106
    ...with the Marks & Spencer UK Pension Scheme. 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. 2012 £m 2011 £m Total future...

  • Page 107
    ... (1,857.1) Financial review B. Reconciliation of net debt to statement of financial position 2012 £m 2011 £m Governance Statement of financial position and related notes Cash and cash equivalents Current financial assets (note 16) Bank loans and overdrafts (note 20) Medium-term notes - net...

  • Page 108
    ... the Marks & Spencer UK Pension Scheme are set out in notes 11 and 12. E. Key management compensation 2012 £m 2011 £m Salaries and short-term benefits Post-employment benefits Share-based payments Total 8.8 0.1 6.0 14.9 12.0 0.1 9.0 21.1 Key management comprises Board directors only. Further...

  • Page 109
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 107 Overview Company statement of financial position Strategic review Notes As at 31 March 2012 £m As at 2 April 2011 £m Assets Non-current assets Investments in subsidiary undertakings Total ...

  • Page 110
    ...statements Marks and Spencer Group plc Annual report and financial statements 2012 108 Company notes to the financial statements C1 Accounting policies The Company's accounting policies are the same as those set out in note 1 of the Group financial statements, except as noted below. Investments...

  • Page 111
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 109 Overview Strategic review C5 Investments continued B. Principal subsidiary undertakings The Company's principal subsidiary undertakings are set out below. A schedule of interests in all undertakings...

  • Page 112
    ... statements Marks and Spencer Group plc Annual report and financial statements 2012 110 Group financial record 2012 52 weeks £m 2011 52 weeks £m 2010 53 weeks £m 2009 52 weeks £m 2008 52 weeks £m Income statement Revenue¹ UK International Operating profit¹ UK International Total...

  • Page 113
    ... plc Annual report and financial statements 2012 111 Overview Shareholder information Strategic review Analysis of share register Ordinary shares As at 31 March 2012, there were 204,186 holders of ordinary shares whose shareholdings are analysed below. Number of holdings Percentage of total...

  • Page 114
    ...enquiry. Group Secretary and Head of Corporate Governance Amanda Mellor Additional documents For both the Annual Report or Annual Review go to marksandspencer.com/thecompany Alternatively, call 0800 591 697 Please note, students are advised to source information from our website. Contact us email us...

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    ... report S Capital commitments Capital expenditure Cash flow statement Corporate governance Cost of sales Critical accounting estimates and judgements D Going concern Goodwill H Segmental information Shareholder information Share capital Share schemes Statement of financial position Stores...

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    VIEW This Annual Report and our How We Do Business Report online annualreport.marksandspencer.com marksandspencer.com/howwedobusiness