Marks and Spencer 2013 Annual Report Download - page 109

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 107
Overview Strategic review Financial review Governance Financial statements and other information
24 Ordinary share capital
2013 2012
Shares £m Shares £m
Issued and fully paid ordinary shares of 25p each
At start of year 1,605,507,102 401.4 1,584,863,882 396.2
Shares issued on exercise of share options 8,381,090 2.1 20,643,220 5.2
At end of year 1,613,888,192 403.5 1,605,507,102 401.4
Issue of new shares
8,381,090 (last year 20,643,220) ordinary shares having a nominal value of £2.1m (last year £5.2m) were allotted during the year under
the terms of the Company’s schemes which are described in note 13. The aggregate consideration received was £22.9m (last year
£44.3m).
25 Contingencies and commitments
A. Capital commitments
2013
£m
2012
£m
Commitments in respect of properties in the course of construction 9.5 71.4
In respect of its interest in a joint venture, the Group is committed to incur capital expenditure of £nil (last year £nil).
B. Other material contracts
In the event of a material change in the trading arrangements with certain warehouse operators, the Group has a commitment to
purchase property, plant and equipment, at values ranging from historical net book value to market value, which are currently owned
and operated by the warehouse operators on the Group’s behalf.
See note 12 for details on the partnership arrangement 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.
2013
£m
2012
£m
Total future minimum rentals payable under non-cancellable operating leases are as follows:
Within one year 276.9 257.8
Later than one year and not later than five years 1,064.5 997.4
Later than five years and not later than ten years 1,053.7 1,029.5
Later than ten years and not later than 15 years 695.1 772.7
Later than 15 years and not later than 20 years 366.8 385.1
Later than 20 years and not later than 25 years 247.0 259.3
Later than 25 years 1,143.0 1,210.1
Total 4,847.0 4,911.9
The total future sublease payments to be received are £50.6m (last year £63.3m).
26 Analysis of cash flows given in the statement of cash flows
Cash flows from operating activities
2013
£m
2012
£m
Profit on ordinary activities after taxation 458.0 489.6
Income tax expense 106.3 168.4
Finance costs 218.2 136.8
Finance income (26.5) (48.3)
Operating profit 756.0 746.5
Increase in inventories (91.2) (0.1)
Decrease/(increase) in receivables 9.5 (17.1)
Payments to acquire leasehold properties –(1.2)
Increase in payables 77.0 103.4
Non-underlying operating cash outflows (21.4) (22.9)
Depreciation, amortisation and asset write-offs 467.4 479.7
Share-based payments 25.8 32.5
Pension costs charged against operating profit 68.4 57.7
Cash contributions to pension schemes (70.9) (89.9)
Non-underlying operating profit items (see note 5) 25.6 63.5
Cash generated from operations 1,246.2 1,352.1
Non-underlying operating cash outflows relate to the utilisation of the provisions for UK restructuring, strategic programme costs
and the reduction in M&S Bank income for the impact of the financial product mis-selling provision.