Marks and Spencer 2013 Annual Report Download - 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 are implementing large-scale
revolutionary change that spans our
supply chain, stores, web platform and
IT infrastructure – creating a sound base
for sustainable future growth. However,
our plans to transform M&S have not
altered the values on which we were
founded; our commitment to Quality,
Value, Service, Innovation and Trust
continues to set us apart.
Performance and dividend
In a difficult year, customers continued to
place their trust in M&S. We delivered
consistently strong results in our Food
business, up 3.9%. Our executive team
took decisive action to address areas of
underperformance in our General
Merchandise business and we began
to see improvements in our operational
execution and a reassertion of our
quality credentials.
We made significant improvements to
our UK operations: rolling out our new
store concept across our estate, opening
a new e-commerce distribution centre
and strengthening our systems. Our
Multi-channel business and our priority
International markets grew strongly,
supporting our strategic goals.
In line with our dividend policy, we
remain committed to delivering
consistent returns to our shareholders.
This year we intend to pay a final
dividend of 10.8p, unchanged from
last year.
Governance and the Board
On joining M&S, I set out three clear
priorities for the Board and we remain
firmly focused on these key aspects.
First, to debate and agree our strategy,
holding the executive team accountable
for its execution. Second, to ensure we
have the most talented team to execute
our strategy and that we plan effectively
for succession. Finally, to set the tone of
‘doing the right thing’, supported by the
appropriate governance structures and
their effective implementation.
This year we set out some planned
changes to our non-executive team.
Having served on the Board since 2006,
Jeremy Darroch will retire from the Board
in June 2013. I would like to thank
Jeremy for his significant contribution
to M&S and his strong leadership of our
Audit Committee. We welcomed Andy
Halford as a non-executive director in
January. As Chief Financial Officer of
Vodafone for the past eight years, Andy
has a wealth of valuable experience and
will succeed Jeremy as Chairman of the
Audit Committee from June. With
continuity in mind, Steven Holliday
agreed to stand for re-election at the
AGM for a further year, before stepping
down at the AGM in July 2014. By this
time he will have served on the M&S
Board for ten years and chaired the
Remuneration Committee for almost
five years.
After nine years, Steven Sharp, Executive
Director, Marketing, is retiring from M&S.
He will step down from the Board
following the AGM and will continue to
work in the business as Creative Director
until 28 February 2014. I would like to
thank Steve for the significant role he has
played in shaping the M&S brand and
reinforcing our quality, style and ethical
credentials through numerous iconic
campaigns.
As a result of this change, Patrick
Bousquet-Chavanne will take over
responsibility for marketing and will be
put forward for election to the Board
as Executive Director, Marketing and
Business Development at this year’s
AGM. Patrick joined M&S in September
2012 as Director of Strategy
Implementation and Business
Development and has played a key
role in the development of the new
marketing strategy in womenswear.
“ We are implementing
revolutionary change
in our retailing
systems and
infrastructure but
the values on which
M&S was founded
remain unaltered.”
Robert Swannell
Chairman
Interim dividend paid on
11 January 2013
6.2p per share
Final dividend to be paid
on 12 July 2013
10.8p per share
Total dividend for
2012/13
17.0p per share
DIVIDEND