Marks and Spencer 2016 Annual Report Download - page 125

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123
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
OUR BUSINESSOUR PERFORMANCEGOVERNANCEFINANCIAL STATEMENTS
NOTES TO THE COMPANY FINANCIAL STATEMENTS
C1 ACCOUNTING POLICIES
The Company’s accounting policies are the same as those set out in note 1 of the Group fi nancial statements, except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. The Company grants share-based
payments to the employees of subsidiar y companies. Each period the fair value of the employee ser vices received by the subsidiary
as a capital contribution from the Company is refl ected as an addition to investments in subsidiaries.
Loans from other Group undertakings and all other payables are initially recorded at fair value, which is generally the proceeds received.
They are then subsequently carried at amortised cost. The loans are non-interest bearing and repayable on demand.
The Company’s fi nancial risk is managed as part of the Group’s strategy and policies as discussed in note 21 of the Group fi nancial statements.
In accordance with the exemption allowed by Section 408(3) of the Companies Act 2006, the Company has not presented its own income
statement or statement of comprehensive income.
C2 EMPLOYEES
The Company had no employees during the current or prior year. Directors received emoluments in respect of their services to the
Company during the year of £956,000 (last year £960,000). The Company did not operate any pension schemes during the current
or preceding year.
C3 AUDITOR'S REMUNERATION
Auditor's remuneration in respect of the Company’s annual audit has been borne by its subsidiary Marks and Spencer plc and has been
disclosed on a consolidated basis in the Company’s consolidated fi nancial statements as required by Section 494(4)(a) of the Companies
Act 2006.
C4 DIVIDENDS
2016
per share
2015
per share
2016
£m
2015
£m
Dividends on equity ordinary shares
Paid fi nal dividend 11.6p 10.8p 190.8 176.2
Paid interim dividend 6.8p 6.4p 110.9 104.5
18.4p 17. 2p 301.7 280.7
In addition, the directors have proposed a fi nal dividend in respect of the year ended 2 April 2016 of 11.9p per share (last year 11.6p),
amounting to a dividend of £192.6m (last year £190.8m). This payment is subject to approval of shareholders at the Annual General Meeting,
to be held on 12 July 2016.
In addition, the Board have declared the payment of a special dividend of 4.6p per share amounting to a dividend of c£75m. Both the special
and the fi nal dividends will be paid on 15 July 2016 to the shareholders on the register of members as at close of business on 3 June 2016.
In line with the requirements of IAS 10 ‘Events after the Reporting Period’, these dividends have not been recognised within these results.
A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the Company.
The shares will go ex-dividend on 2 June 2016. For those shareholders electing to receive the DRIP the last date for receipt of a new election
is 24 June 2016.
C5 RELATED PARTY TRANSACTIONS
During the year, the Company has received dividends from Marks and Spencer plc of £302.1m (last year £282.2m) and increased its loan
from Marks and Spencer plc by £129.7m (last year decreased by £42.3m). The outstanding balance was £2,559.2m (last year £2,429.5m) and
is non-interest bearing. There were no other related party transactions.
C6 INVESTMENTS
A . Inves tme nts in su bsi dia r y un d er t aki n gs
2016
£m
2015
£m
Beginning of the year 9,226.4 9,217.4
Additional investment in subsidiar y undertakings rel ating to share-based payments 9.4 9.0
End of year 9,235.8 9,226.4
Shares in subsidiary undertakings represent the Company’s investment in Marks and Spencer plc. The directors believe that the carrying
value of the investments is supported by their underlying net assets.