Marks and Spencer 2013 Annual Report Download

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Annual report and financial statements 2013

Table of contents

  • Page 1
    Annual report and financial statements 2013

  • Page 2
    ... business, we sell high-quality, great value food and remain the UK market leaders in womenswear, lingerie and menswear. Read more on page 16 Multi-channel From browsing through to purchase and delivery, we aim to provide the best shopping experience for our customers. Whether in stores, online...

  • Page 3
    ... Shareholder Communication' link. Investor Relations app The Marks & Spencer Investor Relations app provides investor and financial media information in an iPad-optimised format. The app delivers the latest share price information and corporate news as well as financial reports, presentations...

  • Page 4
    Overview Marks and Spencer Group plc Annual report and financial statements 2013 02 Chairman's statement 2012/13 was another year of progress for M&S, where a mixed trading performance was balanced by good progress in building our long-term foundations, in line with our key strategic goals. We ...

  • Page 5
    Overview Marks and Spencer Group plc Annual report and financial statements 2013 03 Overview 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 decision-...

  • Page 6
    Overview Marks and Spencer Group plc Annual report and financial statements 2013 04 Marketplace Customers are the heart of our business, so it is vital that we understand what they want from M&S. Our Customer Insight Unit (CIU) uses a combination of market research and customer feedback to help...

  • Page 7
    Overview Marks and Spencer Group plc Annual report and financial statements 2013 05 Overview CUSTOMER INSIGHT "I want every purchase I make to feel worthwhile and really make a difference to me." How we have responded Area Impact Response Strategic review Clothing The clothing market ...

  • Page 8
    ...strict sourcing standards meant M&S did not need to withdraw any products as a result of the supply chain issues. In a challenging economic environment, Plan A also helps us to run a more efficient business, through reducing waste and energy use. We continued to share our experiences with suppliers...

  • Page 9
    ... Financial & strategic planning Supply chain & logistics Our locations - Major shopping centres - High streets - Retail parks - Railway stations - Airports - Petrol and service stations - 24/7 online Where we sell Customer engagement and sales Financial statements and other information Home...

  • Page 10
    ...16.6% International £1.1bn 4.5% 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 A leading UK multi-channel retailer 2012-2013 Focus on UK Brand Clothing Home Food Stores

  • Page 11
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2013 09 Overview Both departments performed very well and feature the latest in multi-channel thinking - driving customer engagement and increased sales. In August 2012, we opened our flagship store at Cheshire ...

  • Page 12
    Strategic review Chief Executive's overview Marks and Spencer Group plc Annual report and financial statements 2013 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
    ... Spencer Group plc Annual report and financial statements 2013 11 Overview Strategic review Perfectly edited Our Perfectly campaign brought together a carefully edited collection of the iconic quality wardrobe staples that set M&S apart. Each ad offered easy style advice, showing different ways...

  • Page 14
    ... of a full line store by 2015. Analysis As we strengthen our multi-channel capabilities, we continue to make progress against our target to increase sales by £300m to £500m by 2013/14. Plan A Our operations UK & ROI greenhouse gas emissions Gross (000 tonnes) 2012/13 2006/07 UK & ROI greenhouse...

  • Page 15
    ... internationally focused business and are making progress against our target of increasing international sales by £300m to £500m by 2013/14. Financial statements and other information Our products Percentage of M&S products with a Plan A quality 2012/13 2011/12 2015 target Our people Employee...

  • Page 16
    ... review Chief Executive's overview Marks and Spencer Group plc Annual report and financial statements 2013 14 People behind the plan Management Committee " We depend on our people to make the M&S difference. I'd like to thank all our employees for their hard work, enthusiasm and commitment...

  • Page 17
    .... Sacha Berendji Retail Director In a challenging trading environment, great customer service matters more than ever. We've worked hard to equip our employees with the knowledge and skills they need to help customers, bring our new store format to life and provide a great shopping experience. We've...

  • Page 18
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2013 16 Our brand "Our brand is one of our strongest assets; inspiring trust from customers." Steven Sharp Executive Director, Marketing Spotlight on products Our Autumn/Winter campaigns were ...

  • Page 19
    ... on the UK Marks and Spencer Group plc Annual report and financial statements 2013 17 Overview Womenswear Our Autumn/Winter campaign used models of a broader representation of shape and size to give customers inspiration. Strategic review M&S Bank With over 25 years in personal finance, the...

  • Page 20
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2013 18 General Merchandise GENERAL MERCHANDISE HIGHLIGHTS General merchandise revenue £4.1bn 2.4% 9.9% 0.5% pts Responding to customer feedback, we started to reassert our quality credentials...

  • Page 21
    ... this year - using multi-channel activity to bring it to life. The carefully edited collection includes prestige global brands and sales from our new Beauty departments were 25% ahead of other stores. AS SEEN IN Strategic review Financial review British Fashion Council 'Best of British' is our...

  • Page 22
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2013 20 General merchandise continued Lingerie & Beauty We continue to lead the UK market in lingerie. Our customers shop with us for everyday essentials, underwear solutions and special occasion...

  • Page 23
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2013 21 Overview Food FOOD HIGHLIGHTS Food revenue £4.9bn 3.9% Market share 3.8% level Quality, trust and provenance continue to underpin everything we do - from our relationships with ...

  • Page 24
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2013 22 Food continued A record Christmas We launched over 250 new Christmas lines and had our best ever week for party food in the lead-up to Christmas, selling 2.2 million packs. We sold almost...

  • Page 25
    Strategic review Focus on the UK Marks and Spencer Group plc Annual report and financial statements 2013 23 Overview We trace it so you can trust it Good food starts with good ingredients - and the best ingredients come from the best farmers. Every farm supplying us with fresh meat is known to ...

  • Page 26
    ... draw. We are currently receiving over 12,000 responses every week. Technology in stores This year our business unit, store design and e-commerce teams collaborated to make our stores work harder and bring the M&S multi-channel experience to life in our stores. Using the latest technology, we are...

  • Page 27
    ... were in prime out-of-town locations with car parks and many of the larger stores feature a bakery, deli or café as well as our Shop Your Way order and collection service. We plan to maintain the rate of new store openings in the coming year. Governance Financial statements and other information

  • Page 28
    ... review Marks and Spencer Group plc Annual report and financial statements 2013 26 Multi-channel MULTI-CHANNEL HIGHLIGHTS Revenue £651.8m 16.6% Weekly site visitors 3.6m 18% As explained on page 24, we made more of our products available to our customers through the introduction of new...

  • Page 29
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2013 27 Overview Reaching more customers Our international multichannel expansion continued this year, and by April 2013 we had transactional websites in ten markets. We further improved our multi-channel offer,...

  • Page 30
    ... business model for each market. We are growing our presence in India, China and the Middle East region including Russia and Turkey, as well as developing a multi-channel proposition to serve customers in Western Europe. This approach is being delivered by a best-in-class international management...

  • Page 31
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2013 29 Overview Total Europe: Total Middle East and North Africa: Total Asia: 4 new stores opened (-2 net) 6 new websites 155 stores 137 stores 126 stores 19 new stores opened (+15 net) 22 new stores opened...

  • Page 32
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2013 30 People PEOPLE HIGHLIGHTS Total employees 81,734 Employees with over five years' service 59% Our people are the lifeblood of M&S; bringing our values to life: from the innovative products they create ...

  • Page 33
    ... by our successful scheme already operating in stores and offices, we took our Marks & Start scheme to another level and a new part of our business. Marks & Start Logistics will help recruit, train and employ people with disabilities and health conditions at our newly opened e-commerce distribution...

  • Page 34
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2013 32 Plan A PLAN A HIGHLIGHTS Plan A Commitments 180 139 After our five year milestone in 2012, this year was one of planning and progress for Plan A. The commercial benefits of our commitment remained ...

  • Page 35
    Strategic review Marks and Spencer Group plc Annual report and financial statements 2013 33 Overview Helping customers and employees count calories In line with our health and wellbeing commitments, we introduced calorie labelling in our store cafés and other catering services for customers. ...

  • Page 36
    ... Group plc Annual report and financial statements 2013 34 Financial review Investing in our future Our investment is strengthening our UK business through the roll-out of our new store format - encouraging customers to reappraise M&S. Multi-channel sales accelerated to £651.8m and International...

  • Page 37
    Financial review Marks and Spencer Group plc Annual report and financial statements 2013 35 Overview Summary of results 52 weeks ended 30 March 2013 £m 31 March 2012 £m Strategic review % variance Group revenue UK International Underlying operating profit UK International Underlying pro...

  • Page 38
    ... review Marks and Spencer Group plc Annual report and financial statements 2013 36 International underlying operating profit was down 9.9% (down 10.9% on a constant currency basis). Franchise operating profits were down 3.9% to £106.3m, with our European franchise partners' trading environments...

  • Page 39
    Financial review Marks and Spencer Group plc Annual report and financial statements 2013 37 Overview We continued to invest in our UK stores in order to create a more inspiring environment. The new concept had been rolled out to 337 stores at the year end. Our programme set out in November 2010...

  • Page 40
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 38 Governance Chairman's overview This year's report - key activities Following the positive feedback we received around the level of openness relating to our Board activities and debate last year, this year we ...

  • Page 41
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 39 Overview Our Committees and Committee Chairmen and objectives in shaping the Board for the future in our Board Diversity Policy. We are conscious that, following Kate Bostock's departure and the subsequent ...

  • Page 42
    ... Operating Officer in 2005. As CEO, Marc continues to work with the Board in developing and implementing our strategy to become an international, multi-channel retailer. Other roles: Non-executive director of Manpower Inc, USA, Honorary Vice President of UNICEF UK and Director of the Consumer Goods...

  • Page 43
    ... June 2013. Other roles: CEO of British Sky Broadcasting. Committees: Audit (Chairman), Nomination Strategic review 93% Consumer 100% Finance 36% E-commerce & technology Financial review 29% International Women on the board* Andy Halford Non-executive director I Appointed: Jan 2013 Experience...

  • Page 44
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 42 Leadership The Board in action The Board took the opportunity as part of its strategy days in 2012/13 to visit some key operations and projects around the business. Strategy meeting at Castle Donington The ...

  • Page 45
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 43 Overview Visit to Cheshire Oaks Store The second part of the October strategy day. The Board discussed the development of Plan A, the store modernisation programme and held a session on the future of retail. ...

  • Page 46
    ...director level; - Review how we can continue to benefit from the extensive and diverse experience of our non-executive directors; - Allow for greater review and reflection on the quality of past decisions; - Given our changing risk profile as we become a leading, international multi-channel retailer...

  • Page 47
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 45 Overview Accountability Almost certain We believe that effective risk management is critical to the achievement of our strategic objectives and the long-term sustainable growth of our business. What is our ...

  • Page 48
    ... change: Our people are fundamental to the long term success and growth of this business - External hires recruited into a number of senior roles bringing an alternative perspective - Robust employee engagement process for effective communication - Alignment of development programmes with business...

  • Page 49
    ...Marks and Spencer Group plc Annual report and financial statements 2013 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 an international, multi...

  • Page 50
    ... of our international offer; delivering GM product style and quality is critical in achieving our aim to grow our International business. 3. UK and international sales performance against plan is a key contributory factor in our ability to achieve effective GM stock management. 4. Other potential...

  • Page 51
    ... level of engagement ranged from one-on-one meetings to group presentations and investor conference calls following our results announcements. In addition we held a number of investor days. Governance event 2012 The Board is committed to ensuring that we communicate effectively with our shareholders...

  • Page 52
    ... Meeting. Investor Relations app for the iPad As new media evolves we try to tailor our communication platforms accordingly. With our Investor Relations app you can view our results and trading statements, regulatory news announcements, interviews with directors, share price information and our TV...

  • Page 53
    ... review; continued to receive updates from executives managing key areas of the business, including Plan A, Business Continuity, Customer Services, EDC/NDC, HR Shared Services, Food Pricing and Promotions and Multi-channel. These now account for around a quarter of the time allocated to the meetings...

  • Page 54
    ... the current platform. HR shared services - updated on the new people system integration, including online payslips, salary exchange, centralised HR, ways of working and staff roster management; - reviewed target completion dates and opportunities regarding our international operations; - reviewed...

  • Page 55
    ... as Executive Director, Food. Prior to his appointment to the Board, Steve had held a number of senior management roles, most recently as Head of Retail. Steve's appointment demonstrates progress against the Committee's focus on succession and development of internal talent below Board level. In...

  • Page 56
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 54 Nomination Committee continued Board diversity policy Last year we published our first Board diversity policy, which set out our targets and objectives to ensure that diversity, in its broadest sense, remains ...

  • Page 57
    ... that protects the long-term interests of our stakeholders and helps to develop an internationally successful business. The Committee also has a particularly strong focus on the remuneration for employees below Board level when determining remuneration for executive directors. The Company has...

  • Page 58
    ... Group plc Annual report and financial statements 2013 56 Part 1: Unaudited information Remuneration Committee What is the remit of the Remuneration Committee? The role of the Remuneration Committee is to make recommendations regarding the senior remuneration strategy and framework to the Board...

  • Page 59
    ... on the 2012/13 Annual Bonus Scheme targets and Performance Share Plan targets; - review of and agreement to amendments to share plan rules to support the Company's international strategy; - review of and agreement to remuneration packages for new executive directors and new senior managers; and...

  • Page 60
    ... - targets based on annualised Earnings Per Share (EPS) growth, Return on Capital Employed (ROCE) and revenue growth across the UK, International and Multi-channel businesses - links individual reward with long-term Company performance - aligned to shareholder interests through long-term financial...

  • Page 61
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 59 Overview What are the indicative values of the remuneration packages for each executive director? The charts below provide an indication of what could be received by each of the executive directors under the ...

  • Page 62
    ... Group plc Annual report and financial statements 2013 60 Remuneration report continued What are the details of fixed remuneration? Executive directors Salary In reviewing executive director salary levels for 2013, the Committee took into account Company performance in 2012/13, external market...

  • Page 63
    ... against pre-determined targets Based on strategic growth targets: - 10% on UK - 10% on International - 10% on Multi-channel Return on Capital Employed (ROCE) Revenue Rewards top line growth in line with business strategy Financial statements and other information % Vesting1 Annualised EPS...

  • Page 64
    ... Plan A objectives Enhanced reporting for information and planning Laura Wade-Gery Group PBT Total UK operating costs Multi-channel operating costs Individual Plan A objectives Increased UK online sales and customer satisfaction Launched new International websites Delivered new multi-channel...

  • Page 65
    ... against UK operating plan cost targets: As set out on page 34 of the Annual Report, we managed the businesses prudently in a challenging market. Based on the Committee's assessment of performance against the individual targets under this objective, payouts to executive directors were in the range...

  • Page 66
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 64 Remuneration report continued The targets for outstanding 2011 and 2012 awards are shown in the table below: 2011 and 2012 Awards % Vesting1 Cumulative EPS (p) ROCE (%) Revenue (£)5 UK2 Multi-channel3 ...

  • Page 67
    ... was appointed to the Board of Marks and Spencer Group plc as a non-executive director on 1 January 2013. He is a member of the Audit and Nomination Committees. He receives a basic fee of £70,000 in line with the structure set out on page 60. Governance Financial statements and other information

  • Page 68
    ...in 2012 under the Deferred Share Bonus Plan. What will be the changes to the Board in 2013/14? Directors joining the Board Patrick Bousquet-Chavanne Patrick Bousquet-Chavanne will join the Board as Executive Director, Marketing & Business Development on 10 July 2013. He will receive an annual salary...

  • Page 69
    ... 2013 are shown below: % of salary Time from date of appointment Target Actual Dilution limits What is the current dilution of share capital by employee share plans? Awards granted under the Company's Save As You Earn scheme and the Executive Share Option scheme are met by the issue of new shares...

  • Page 70
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 68 Part 2: audited information Directors' emoluments Salary/fee1 £000 Cash allowance2 £000 Benefits3 £000 Dividend equivalents £000 Bonus4 £000 Total 2013 £000 Total 2012 £000 Chairman Robert Swannell ...

  • Page 71
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 69 Overview Strategic review Directors' interests in long-term incentive schemes Maximum options receivable at 1 April 2012 or date of appointment Options granted during the year Options exercised during the year...

  • Page 72
    Governance Marks and Spencer Group plc Annual report and financial statements 2013 70 Remuneration report continued Directors' interests in long-term incentive schemes (continued) Maximum options receivable at 1 April 2012 or date of appointment Options granted during the year Options exercised...

  • Page 73
    ... plc Annual report and financial statements 2013 71 Overview Pensions governance The Group operates a defined benefit pension scheme (the 'Scheme') for employees with an appointment date prior to 1 April 2002. The results of the triennial actuarial valuation of the Scheme as at 31 March 2012...

  • Page 74
    ... plc (the 'Company') is the holding company of the Marks & Spencer Group of companies (the 'Group'). M&S has grown from a single market stall to become an international, multi-channel retailer. With 766 stores across the UK and a growing e-commerce business, we sell high quality, great value food...

  • Page 75
    ... the Save As You Earn (SAYE) Share Option and Executive Share Option Schemes are shown on pages 69 to 70. Further information regarding employee share option schemes is given in note 13 to the financial statements. Kate Bostock stepped down from the Board as Executive Director General Merchandise...

  • Page 76
    ... Group plc Annual report and financial statements 2013 74 Other disclosures continued Steve Sharp will step down from the Board following the Annual General Meeting on 9 July 2013 and will continue to work in the business as Creative Director until 28 February 2014. Patrick Bousquet-Chavanne...

  • Page 77
    ... the following: - 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 required by the Order. - M&S has a Code Compliance Officer as required under the...

  • Page 78
    ... plc Annual report and financial statements 2013 76 Other disclosures continued Royal British Legion, our Marks & Start programme and local community donations. We also donated £1.2m (last year £1.3m) of employee time, principally from fundraising, volunteering, Marks & Start and school work...

  • Page 79
    ... the Corporate Governance Statement relating to the Company's compliance with the nine provisions of the UK Corporate Governance Code specified for our review; and - certain elements of the report to shareholders by the Board on directors' remuneration. Strategic review Financial review Governance...

  • Page 80
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 78 Financial statements Consolidated income statement Notes 52 weeks ended 30 March 2013 £m 52 weeks ended 31 March 2012 £m Revenue 2, 3 2, 3 6 6 4 7 10,026.8 756.0 26.5 (218.2) 564.3 (106.3) 458...

  • Page 81
    ... Marks and Spencer Group plc Annual report and financial statements 2013 79 Overview Consolidated statement of financial position Notes As at 30 March 2013 £m As at 31 March 2012 £m Strategic review Assets Non-current assets Intangible assets Property, plant and equipment Investment...

  • Page 82
    ... statements Marks and Spencer Group plc Annual report and financial statements 2013 80 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 83
    ... and Spencer Group plc Annual report and financial statements 2013 81 Overview Consolidated cash flow information Notes 52 weeks ended 30 March 2013 £m 52 weeks ended 31 March 2012 £m Strategic review Cash ï¬,ows from operating activities Cash generated from operations Income tax paid Net...

  • Page 84
    ... statement of financial position. The defined benefit obligation is actuarially calculated using the projected unit credit method. The service cost of providing retirement benefits to employees during the year, together with the cost of any benefits relating to past service, is charged to operating...

  • Page 85
    ... reporting period, and are discounted to present value where the effect is material. Strategic review Financial review Governance Share-based payments The Group issues equity-settled share-based payments to certain employees. A fair value for the equity-settled share awards is measured at the date...

  • Page 86
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 84 Notes to the financial statements continued 1 Accounting policies continued Taxation continued Deferred tax is accounted for using a temporary difference approach, and is the tax expected to be ...

  • Page 87
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 85 Overview 1 Accounting policies continued A. Cash ï¬,ow hedges continued For hedges that do not result in the recognition of an asset or a liability, amounts deferred in comprehensive income are ...

  • Page 88
    ...statements Marks and Spencer Group plc Annual report and financial statements 2013 86 Notes to the financial statements continued 2 Segmental information IFRS 8 requires operating segments to be identified on the basis of internal reporting on components of the Group that are regularly reviewed...

  • Page 89
    ... Group plc Annual report and financial statements 2013 87 Overview 3 Expense analysis 2013 Underlying £m Adjustments £m Total £m Underlying £m Adjustments £m 2012 Total £m Strategic review Revenue Cost of sales Gross profit Selling and administrative expenses Other operating income...

  • Page 90
    ... the Group's underlying performance. These adjustments include: - Strategic programme costs relating 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...

  • Page 91
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 89 Overview 6 Finance income/costs 2013 £m 2012 £m Strategic review Bank and other interest receivable Pension net finance income (see note 11E) Underlying finance income Fair value movement of put...

  • Page 92
    ... statements Marks and Spencer Group plc Annual report and financial statements 2013 90 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...

  • Page 93
    ... Spencer Group plc Annual report and financial statements 2013 91 Overview 10 Employees A. Aggregate remuneration The aggregate remuneration and associated costs of Group employees were: 2013 Total £m 2012 Total £m Strategic review Wages and salaries Social security costs Pension costs Share...

  • Page 94
    ... Spencer Group plc Annual report and financial statements 2013 92 Notes to the financial statements continued 11 Retirement benefits continued A. Pensions and other post-retirement liabilities 2013 £m 2012 £m Total market value of assets Present value of scheme liabilities Net funded pension...

  • Page 95
    ... Marks and Spencer Group plc Annual report and financial statements 2013 93 Overview 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: 2013 £m 2012 £m 2013 % 2012 % Strategic review...

  • Page 96
    ... statements Marks and Spencer Group plc Annual report and financial statements 2013 94 Notes to the financial statements continued 11 Retirement benefits continued G. Retirement benefit obligations Changes in the present value of retirement benefit obligations are as follows: 2013 £m 2012...

  • Page 97
    ... of the option and share schemes that the Group operates are provided in the Remuneration report on pages 60 to 62. 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...

  • Page 98
    ... Share Plan was established in 2000 as part of the reward strategy for retention and recruitment of senior managers who are vital to the success of the business. The Plan operates for senior managers below executive director level. Awards under the Plan are made as part of ongoing reviews of reward...

  • Page 99
    ... plans. *Nil cost options For the purposes of calculating the number of shares awarded, the share price used is the average of the mid-market price for the five consecutive dealing days preceding the grant date. Strategic review Financial review Governance Financial statements and other information

  • Page 100
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 98 Notes to the financial statements continued 14 Intangible assets Goodwill £m Brands £m Computer software £m Computer software under development £m Total £m At 2 April 2011 Cost or valuation ...

  • Page 101
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 99 Overview 15 Property, plant and equipment Land and buildings £m Fixtures, fittings and equipment £m Assets in the course of construction £m Total £m Strategic review At 2 April 2011 Cost ...

  • Page 102
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 100 Notes to the financial statements continued 16 Other financial assets 2013 £m 2012 £m Non-current Unlisted investments Current Short-term investments1 Unlisted investments 3.0 10.7 6.2 16.9 ...

  • Page 103
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 101 Overview 20 Borrowings and other financial liabilities 2013 £m 2012 £m Strategic review Current Bank loans and overdrafts1 5.875% £267m medium-term notes 20122 5.625% £400m medium term notes ...

  • Page 104
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 102 Notes to the financial statements continued 21 Financial instruments continued Financial risk management The principal financial risks faced by the Group are liquidity/funding, interest rate, ...

  • Page 105
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 103 Overview 21 Financial instruments continued The table below analyses the Group's short-term investments and derivative assets by credit exposure excluding bank balances, store cash and cash in ...

  • Page 106
    ... rate sterling debt. These are reported as cash flow hedges. Sensitivity analysis The table below illustrates the estimated impact on the income statement and equity as a result of market movements in foreign exchange and interest rates in relation to the Group's financial instruments. The Directors...

  • Page 107
    ... result in significant change in the fair value of the instrument. As at the end of the reporting period, the Group held the following financial instruments measured at fair value: 2013 Level 1 £m Level 2 £m Level 3 £m Total £m Level 1 £m Level 2 £m Level 3 £m 2012 Total £m Financial review...

  • Page 108
    ... statements Marks and Spencer Group plc Annual report and financial statements 2013 106 Notes to the financial statements continued 21 Financial instruments continued Capital policy The Group's objectives when managing capital are to safeguard its ability to continue as a going concern in order...

  • Page 109
    ... statements Marks and Spencer Group plc Annual report and financial statements 2013 107 Overview 24 Ordinary share capital 2013 Shares £m Shares 2012 £m Strategic review Issued and fully paid ordinary shares of 25p each At start of year Shares issued on exercise of share options At end...

  • Page 110
    ...) Current financial assets (note 16) Bank loans and overdrafts (note 20) Medium-term notes - net of hedging derivatives Finance lease liabilities (note 20) Partnership liability to the Marks & Spencer UK Pension Scheme (note 12) Interest payable included within related borrowing Total net debt 193...

  • Page 111
    ... the Marks & Spencer UK Pension Scheme are set out in notes 11 and 12. E. Key management compensation 2013 £m 2012 £m Strategic review Salaries and short-term benefits Post-employment benefits Share-based payments Total 9.2 - 2.6 11.8 8.8 0.1 6.0 14.9 Key management comprises Board directors...

  • Page 112
    ... by the Board and authorised for issue on 20 May 2013. The financial statements also comprise the notes on pages 111 and 112. Marc Bolland Chief Executive Officer Alan Stewart Chief Finance Officer Company statement of changes in shareholders' equity Ordinary share capital £m Share premium account...

  • Page 113
    ... Marks and Spencer Group plc Annual report and financial statements 2013 111 Overview 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 114
    Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 112 Company notes to the financial statements continued C5 Investments continued B. Principal subsidiary undertakings The Company's principal subsidiary undertakings are set out below. A schedule of ...

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    ... statements Marks and Spencer Group plc Annual report and financial statements 2013 113 Overview Group financial record 2013 52 weeks £m 2012 52 weeks £m 2011 52 weeks £m 2010 53 weeks £m 2009 52 weeks £m Strategic review Income statement Revenue¹ UK International Operating...

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    ... and Spencer Group plc Annual report and financial statements 2013 114 Shareholder information Analysis of share register Ordinary shares As at 30 March 2013, there were 195,544 holders of ordinary shares whose shareholdings are analysed below. Number of holdings Percentage of total shareholders...

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    .... 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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    Other information Marks and Spencer Group plc Annual report and financial statements 2013 116 Index A PAGE F PAGE N PAGE Accountability Accounting policies Appointment and retirement of directors Audit Committee Auditors Auditors' remuneration Auditors' report Annual General Meeting B 45...

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    This report is printed on Revive Pure uncoated, a 100% recycled paper made from post-consumer collected waste. Revive Pure uncoated is manufactured to the certified environmental management system ISO 14001. Designed and produced by Salterbaxter Printed by CPI Colour. CPI Colour are ISO 14001 ...

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    View this Annual Report and our Plan A Report online marksandspencer.com/annualreport2013 marksandspencer.com/plana2013