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96
MARKS AND SPENCER GROUP PLC
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
3 EXPENSE ANALYSIS
2016
Total
£m
2015
Total
£m
Revenue 10,555.4 10,311.4
Cost of sales (6,427.0) (6,325.9)
Gross profi t 4,128.4 3,985.5
Selling and administrative expenses (3,412.9) (3,304.8)
Other operating income 69.4 81.8
Underlying operating profi t 784.9 762.5
Non-underlying items (see note 5) (200.8) (61.2)
Operating profi t 584.1 701.3
The selling and administrative expenses excluding non-underlying items are further analysed below:
2016
Total
£m
2015
Total
£m
Employee costs11,435.7 1,360.7
Occupancy costs 723.2 709.0
Repairs, renewals and maintenance of property 99.5 104.9
Depreciation, amortisation and underlying asset impairments and write-o s 576.8 550.1
Other costs 577.7 580.1
Selling and administrative expenses 3,412.9 3,304.8
1. There are an additional £51.0m (last year £45.5m) of employee costs recorded within cost of sales. These costs are included within note 10A.
4 PROFIT BEFORE TAXATION
The following items have been included in arriving at profi t before taxation:
2016
£m
2015
£m
Net foreign exchange losses/(gains) 6.9 (12.7)
Cost of inventories recognised as an expense 5,778.6 5,746.2
Depreciation of property, plant, and equipment
– owned assets 412.7 396.8
– under fi nance leases 1.4 3.3
Amortisation of intangible assets 148.7 122.7
(Profi t)/loss on property disposals (0.6) 2.3
Impairments and write-o s of assets 159.6 71.3
Operating lease rentals payable
– property 337.1 318.8
– fi xtures, fi ttings and equipment 3.5 2.8
Included in administrative expenses is the auditor’s remuneration, including expenses for audit and non-audit services, payable to the
Company’s auditor Deloitte LLP and its associates as follows:
2016
£m
2015
£m
Annual audit of the Company and the consolidated fi nancial statements 0.7 0.7
Audit of subsidiary companies 0.7 0.6
Audit-related assurance services 0.2 0.2
Total audit and audit-related assurance services fees 1.6 1.5
Tax compliance services –0.1
Other services 0.1 0.4
Total other services 0.1 0.5