Marks and Spencer 2015 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2015 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

98
MARKS AND SPENCER GROUP PLC
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
2 SEGMENTAL INFORMATION
IFRS 8 requires operating segments to be identifi ed on the basis of internal reporting on components of the Group that are regularly
reviewed by the chief operating decision maker to allocate resources to the segments and to assess their performance.
The chief operating decision maker has been identifi ed as the executive directors. The executive directors review the Group’s internal
reporting in order to assess performance and allocate resources across each operating segment. The operating segments are UK and
International which are reported in a manner consistent with the internal reporting to the executive directors.
The UK segment consists of the UK retail business and UK franchise operations. The International segment consists of Marks & Spencer
owned businesses in the Republic of Ireland, Europe and Asia, together with international franchise operations.
The executive directors assess the performance of the operating segments based on a measure of operating profi t. This measurement
basis excludes the e ects of non-underlying items from the operating segments. Central costs are all classifi ed as UK costs and presented
within UK operating profi t. The executive directors also monitor revenue within the segments and gross profi t within the UK segment.
To increase transparency, the Group has decided to include an additional voluntary disclosure, analysing revenue within the reportable
segments by subcategory and gross profi t within the UK segment by subcategory.
The following is an analysis of the Group’s revenue and results by reportable segment:
2015 2014
Management
£m
Adjustment¹
£m
Statutory
£m
Management
£m
Adjustment¹
£m
Statutory
£m
General Merchandise revenue 3,987.4 1.0 3,988.4 4,094.5 (2.0) 4,092.5
Food revenue 5,234.7 – 5,234.7 5,063.2 – 5,063.2
UK revenue 9,222.1 1.0 9,223.1 9,157.7 (2.0) 9,155.7
Franchised 341.3 – 341.3 404.0 – 404.0
Owned 747.0 – 747.0 750.0 – 750.0
International revenue 1,088.3 – 1,088.3 1,154.0 – 1,154.0
Group revenue 10,310.4 1.0 10,311.4 10,311.7 (2.0) 10,309.7
General Merchandise gross profi t 2,098.9 2,074.9
Food gross profi t 1,718.5 1,646.7
UK gross profi t 3,817.4 (293.4) 3,524.0 3,721.6 (345.3) 3,376.3
UK operating costs (3,207.4) 277.6 (2,929.8) (3,159.6) 377.2 (2,782.4)
M&S Bank 60.2 (13.8) 46.4 57.2 (50.8) 6.4
UK operating profi t 670.2 (29.6) 640.6 619.2 (18.9) 600.3
International operating profi t 92.3 (31.6) 60.7 122.7 (28.5) 94.2
Group operating profi t 762.5 (61.2) 701.3 741.9 (47.4) 694.5
Finance income 15.5 – 15.5 20.1 4.9 25.0
Finance costs (116.8) – (116.8) (139.1) – (139.1)
Profi t before tax 661.2 (61.2) 600.0 622.9 (42.5) 580.4
1. Adjustments to revenue relate to an adjustment for refunds recognised in cost of sales for management accounting purposes (£1.3m credit, last year £2.0m charge) and an adjustment
for agency transactions presented gross in the management accounts (£0.3m charge, last year £nil). Management profi t excludes the adjustments (income or charges) made to reported
profi t before tax that are one-o in nature, signifi cant and distort the Group’s underlying performance (see note 5). Management gross profi t for the UK segment excludes certain
expenses resulting in an adjustment between cost of sales and selling and administrative expenses of £293.4m (last year £345.3m).
Other segmental information
2015 2014
UK
£m
International
£m
Total
£m
UK
£m
International
£m
Total
£m
Additions to property, plant and equipment
and intangible assets (excluding goodwill) 544.4 33.4 577.8 688.6 65.1 753.7
Depreciation and amortisation 490.8 32.0 522.8 434.9 34.4 469.3
Impairment and asset write-o s 36.0 35.3 71.3 21.3 13.9 35.2
Total assets 7,763.2 432.9 8,196.1 7,411.4 491.6 7,903.0
Non-current assets 6,424.0 317.1 6,741.1 6,157.6 376.9 6,534.5