Marks and Spencer 2015 Annual Report Download - page 122

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120
MARKS AND SPENCER GROUP PLC
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
25 CONTINGENCIES AND COMMITMENTS
A. Capital commitments
2015
£m
2014
£m
Commitments in respect of properties in the course of construction 102.9 86.1
Commitments in respect of computer software under development 25.5 –
128.4 86.1
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, o ces, warehouses and equipment under non-cancellable operating lease agreements. The leases have
varying terms, escalation clauses and renewal rights.
2015
£m
2014
£m
Total future minimum rentals payable under non-cancellable operating leases are as follows:
– Within one year 291.6 296.9
– Later than one year and not later than fi ve years 1,074.1 1,034.1
– Later than fi ve years and not later than ten years 1,091.0 1,020.1
– Later than ten years and not later than 15 years 549.3 672.0
– Later than 15 years and not later than 20 years 348.8 358.3
– Later than 20 years and not later than 25 years 242.2 236.3
– Later than 25 years 1,074.3 1,064.1
Total 4,671.3 4,681.8
The total non-cancellable future sublease payments to be received are £41.2m (last year £44.9m).
26 ANALYSIS OF CASH FLOWS GIVEN IN THE STATEMENT OF CASH FLOWS
Cash fl ows from operating activities
2015
£m
2014
£m
Profi t on ordinary activities after taxation 481.7 506.0
Income tax expense 118 . 3 74.4
Finance costs 116 . 8 139.1
Finance income (15.5) (25.0)
Operating profi t 701.3 694.5
Decrease/(increase) in inventories 45.7 (86.4)
Increase in receivables (13.0) (45.8)
Increase in payables 87.6 107.7
Non-underlying operating cash infl ows/(outfl ows) 28.6 (17.4)
Depreciation, amortisation and write-o s 550.1 504.7
Share-based payments (1.1) 21.3
Pension costs charged against operating profi t 85.4 92.4
Cash contributions to pension schemes (143.0) (92.1)
Non-underlying non-cash items (53.7) (50.8)
Non-underlying operating profi t items 61.2 47.4
Cash generated from operations 1,349.1 1,175.5