Marks and Spencer 2013 Annual Report Download - page 89

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 87
Overview Strategic review Financial review Governance Financial statements and other information
3 Expense analysis
2013 2012
Underlying
£m
Adjustments
£m
Total
£m
Underlying
£m
Adjustments
£m
Total
£m
Revenue 10,026.8 – 10,026.8 9,934.3 – 9,934.3
Cost of sales (6,230.3) – (6,230.3) (6,179.1) – (6,179.1)
Gross profit 3,796.5 – 3,796.5 3,755.2 – 3,755.2
Selling and administrative expenses (3,107.0) – (3,107.0) (3,021.9) – (3,021.9)
Other operating income 92.1 – 92.1 76.7 – 76.7
Non-GAAP adjustments to underlying profit
(see note 5) – (25.6) (25.6) – (63.5) (63.5)
Operating profit 781.6 (25.6) 756.0 810.0 (63.5) 746.5
The selling and administrative expenses are further analysed below:
2013
£m
2012
£m
Employee costs (see note 10A) 1,321.2 1,253.5
Occupancy costs 651.2 637.9
Repairs, renewals and maintenance of property 96.7 101.4
Depreciation, amortisation and asset write-offs 463.2 479.7
Other costs 574.7 549.4
Selling and administrative expenses 3,107.0 3,021.9
4 Profit before taxation
The following items have been included in arriving at profit before taxation:
2013
£m
2012
£m
Net foreign exchange gains –0.1
Cost of inventories recognised as an expense 5,639.6 6,127.0
Depreciation of property, plant, and equipment
– owned assets 364.2 393.5
– under finance leases 9.9 11.3
Amortisation of intangible assets 76.4 65.3
Operating lease rentals payable
– property 293.9 278.7
– fixtures, fittings and equipment 4.2 7.8
Included in administrative expenses is the auditors’ remuneration, including expenses for audit and non-audit services, payable to
the Company’s auditors PricewaterhouseCoopers LLP and its associates as follows:
2013
£m
2012
£m
Annual audit of the Company and the consolidated financial statements 0.8 0.6
Audit of subsidiary companies 1.0 1.0
Other assurance services 0.2 0.3
Tax compliance services 0.3 0.3
Tax advisory services 0.3 0.1
Other non-audit services 0.5 0.1
3.1 2.4