REG - Marks & Spencer Grp - Half Year Results <Origin Href="QuoteRef">MKS.L</Origin> - Part 2
08/11/2016 07:06
- Part 2: For the preceding part double click ID:nRSH5572Oa
6,927.5
Total shareholders' equity 3,124.3 3,064.0 3,445.2
Non-controlling interests in equity (2.8) (2.8) (1.8)
Total equity 3,121.5 3,061.2 3,443.4
The notes on pages 23 to 35 form an integral part of the condensed consolidated interim financial information.
Consolidated statement of changes in equity
Ordinary share capital Share premium account Capital redemption reserve Hedging reserve Other reserve1 Retained earnings Total Non-controlling interest Total equity
£m £m £m £m £m £m £m £m £m
As at 3 April 2016 405.8 411.3 2,210.5 32.3 (6,542.2) 6,927.5 3,445.2 (1.8) 3,443.4
Profit/(loss) for the period - - - - - 16.9 16.9 (1.0) 15.9
Other comprehensive income/(expense):
Foreign currency translation - - - (2.2) - 24.0 21.8 - 21.8
Remeasurements of retirement benefit schemes - - - - - (141.4) (141.4) - (141.4)
Tax credit on retirement benefit schemes - - - - - 31.5 31.5 - 31.5
Cash flow and net investment hedges
- fair value movements in other comprehensive income - - - 104.6 - (13.4) 91.2 - 91.2
- reclassified and reported in net profit - - - (56.0) - - (56.0) - (56.0)
- amount recognised in inventories - - - (26.1) - - (26.1) - (26.1)
Deferred tax on cash flow hedges and net investment hedges - - - 4.1 - - 4.1 - 4.1
Other comprehensive income/(expense) - - - 24.4 - (99.3) (74.9) - (74.9)
Total comprehensive income/(expense) - - - 24.4 - (82.4) (58.0) (1.0) (59.0)
Transactions with owners:
Dividends - - - - - (267.2) (267.2) - (267.2)
Shares issued on exercise of employee share options 0.4 5.0 - - - - 5.4 - 5.4
Credit for share-based payments - - - - - 4.4 4.4 - 4.4
Deferred tax on share schemes - - - - - (5.5) (5.5) - (5.5)
As at 1 October 2016 406.2 416.3 2,210.5 56.7 (6,542.2) 6,576.8 3,124.3 (2.8) 3,121.5
Ordinary share capital Share premium account Capital redemption reserve Hedging reserve Other reserve1 Retained earnings Total Non-controlling interest Total equity
£m £m £m £m £m £m £m £m £m
As at 29 March 2015 412.0 392.4 2,202.6 64.3 (6,542.2) 6,670.5 3,199.6 (0.8) 3,198.8
Profit/(loss) for the period - - - - - 172.7 172.7 (2.0) 170.7
Other comprehensive (expense)/income:
Foreign currency translation - - - (0.3) - (9.4) (9.7) - (9.7)
Remeasurements of retirement benefit schemes - - - - - 35.3 35.3 - 35.3
Tax charge on retirement benefit schemes - - - - - (7.0) (7.0) - (7.0)
Cash flow and net investment hedges
- fair value movements in other comprehensive income - - - (73.8) - 2.6 (71.2) - (71.2)
- reclassified and reported in net profit - - - 55.2 - - 55.2 - 55.2
- amount recognised in inventories - - - (47.3) - - (47.3) - (47.3)
Deferred tax on cash flow hedges and net investment hedges - - - 12.6 - - 12.6 - 12.6
Other comprehensive (expense)/income - - - (53.6) - 21.5 (32.1) - (32.1)
Total comprehensive (expense)/income - - - (53.6) - 194.2 140.6 (2.0) 138.6
Transactions with owners:
Dividends - - - - - (190.8) (190.8) - (190.8)
Shares issued on exercise of employee share options 0.3 3.3 - - - - 3.6 - 3.6
Purchase of own shares held by employee trusts - - - - - (10.9) (10.9) - (10.9)
Shares purchased in buy-back (2.0) - 2.0 - - (90.0) (90.0) - (90.0)
Credit for share-based payments - - - - - 14.3 14.3 - 14.3
Deferred tax on share schemes - - - - - (2.4) (2.4) - (2.4)
As at 26 September 2015 410.3 395.7 2,204.6 10.7 (6,542.2) 6,584.9 3,064.0 (2.8) 3,061.2
Ordinary share capital Share premium account Capital redemption reserve Hedging reserve Other reserve1 Retained earnings Total Non-controlling interest Total equity
£m £m £m £m £m £m £m £m £m
As at 29 March 2015 412.0 392.4 2,202.6 64.3 (6,542.2) 6,670.5 3,199.6 (0.8) 3,198.8
Profit/(loss) for the year - - - - - 406.9 406.9 (2.5) 404.4
Other comprehensive (expense)/income:
Foreign currency translation - - - (0.5) - 7.8 7.3 - 7.3
Remeasurements of retirement benefit schemes - - - - - 346.2 346.2 - 346.2
Tax charge on items that will not be reclassified - - - - - (45.6) (45.6) - (45.6)
Cash flow and net investment hedges
- fair value movements in other comprehensive income - - - (21.8) - (8.3) (30.1) - (30.1)
- reclassified and reported in net profit - - - (22.1) - - (22.1) - (22.1)
- amount recognised in inventories - - - 5.9 - - 5.9 - 5.9
Tax on cash flow hedges and net investment hedges - - - 6.5 - - 6.5 - 6.5
Other comprehensive (expense)/income - - - (32.0) - 300.1 268.1 - 268.1
Total comprehensive (expense)/income - - - (32.0) - 707.0 675.0 (2.5) 672.5
Transactions with owners:
Dividends - - - - - (301.7) (301.7) - (301.7)
Transactions with non-controlling shareholders - - - - - - - 1.5 1.5
Shares issued on exercise of employee share options 1.7 18.9 - - - - 20.6 - 20.6
Purchase of shares held by employee trusts - - - - - (10.9) (10.9) - (10.9)
Shares purchased in buy-back (7.9) - 7.9 - - (150.7) (150.7) - (150.7)
Debit for share-based payments - - - - - 17.2 17.2 - 17.2
Deferred tax on share schemes - - - - - (3.9) (3.9) - (3.9)
As at 2 April 2016 405.8 411.3 2,210.5 32.3 (6,542.2) 6,927.5 3,445.2 (1.8) 3,443.4
1The 'Other reserve' was originally created as part of the capital
restructuring that took place in 2002. It represents the difference between
the nominal value of the shares issued prior to the capital reduction by the
Company (being the carrying value of the investment in Marks and Spencer plc)
and the share capital, share premium and capital redemption reserve of Marks
and Spencer plc at the date of the transaction.
Consolidated statement of cash flows
26 weeks ended 53 weeks ended
1 Oct 2016 26 Sept 2015 2 April 2016
Notes £m £m £m
Cash flows from operating activities
Cash generated from operations 12 455.6 585.3 1,311.3
Income tax paid (43.0) (39.0) (99.3)
Net cash inflow from operating activities 412.6 546.3 1,212.0
Cash flows from investing activities
Proceeds on property disposals 26.0 29.1 30.6
Purchase of property, plant and equipment (180.3) (177.9) (363.3)
Purchase of intangible assets (42.8) (83.6) (186.8)
Purchase of current financial assets - (3.1) (7.2)
Interest received 3.8 2.9 6.8
Acquisition of subsidiary - - (56.2)
Net cash used in investing activities (193.3) (232.6) (576.1)
Cash flows from financing activities
Interest paid¹ (50.8) (53.0) (113.5)
Cash inflow from borrowings 64.9 109.9 3.1
Drawdown/(repayment) of syndicated loan notes 7.9 (94.4) (19.9)
Decrease in obligations under finance leases (1.1) (1.3) (2.4)
Payment of liability to the Marks & Spencer UK Pension Scheme (57.9) (56.1) (56.0)
Equity dividends paid (267.2) (190.8) (301.7)
Shares issued on exercise of employee share options 5.4 3.6 20.6
Purchase of own shares by employee trust - (10.9) (10.9)
Shareholder returns - (39.8) (150.7)
Net cash used in financing activities (298.8) (332.8) (631.4)
Net cash (outflow)/inflow from activities (79.5) (19.1) 4.5
Effects of exchange rate changes 4.7 (1.5) 3.7
Opening net cash 196.0 187.8 187.8
Closing net cash 121.2 167.2 196.0
¹ Includes interest on the partnership liability to the Marks and Spencer UK Pension Scheme.
Reconciliation of net cash flow to movement in net debt
26 weeks ended 53 weeks ended
1 Oct 2016 26 Sept 2015 2 April 2016
Notes £m £m £m
Opening net debt (2,138.3) (2,223.2) (2,223.2)
Net cash (outflow)/inflow from activities (79.5) (19.1) 4.5
Increase in current financial assets - 3.1 7.2
(Increase)/decrease in debt financing (13.8) 41.9 75.2
Exchange and other non cash movements (11.6) (2.8) (2.0)
Movement in net debt (104.9) 23.1 84.9
Closing net debt 13 (2,243.2) (2,200.1) (2,138.3)
Notes to the financial statements
1 General information and basis of preparation
General information
This condensed consolidated interim information for the period does not
constitute statutory financial statements within the meaning of s434 of the
Companies Act 2006.
The summary of results for the year ended 2 April 2016 is an extract from the
published Annual Report and Financial Statements which were approved by the
board of Directors on 24 May 2016, have been reported on by the Group's
auditors and delivered to the Registrar of Companies. The audit report on the
Annual Report and Financial Statements was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement under s498 (2)
or (3) of the Companies Act 2006.
Basis of preparation
The financial information has been prepared in accordance with International
Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS
IC) interpretations, as adopted by the European Union and with those parts of
the Companies Act 2006 applicable to companies reporting under IFRS. The
condensed financial statement for the 26 weeks ended 1 October 2016 have been
prepared in accordance with the Disclosure and Transparency Rules of the
Financial Conduct Authority and with IAS 34 Interim Financial Reporting as
adopted by the European Union.
The comparative figures for the financial year ended 2 April 2016 and the half
year ended 26 September 2015 are consistent with the Group's annual financial
statements and half year financial statements respectively.
Going concern basis
Based on the Group's cash flow forecasts and projections, the Board is
satisfied that the Group will be able to operate within the level of its bank
facilities for the foreseeable future. For this reason the Group continues to
adopt the going concern basis in preparing its financial statements.
Accounting policies
The results for the first half of the financial year have not been audited and
are prepared on the basis of the accounting policies set out in the Group's
2016 Annual Report and Financial Statements, except as described below.
There have been no significant changes to accounting under IFRS which have
affected the Group's results. The only changes to the IFRS, IFRS IC
interpretations and amendments that are effective for the first time in this
financial year and impact the Group are the Annual Improvements to IFRSs:
2012-2014 cycle. These have not had a material impact on the financial
statements.
The following IFRS have been issued but are not yet effective:
- IFRS 16 'Leases' was issued on 13 January 2016 and is effective for
periods beginning on or after 1 January 2019. Early adoption is permitted if
IFRS 15 'Revenue from Contracts with Customers' has also been applied. The
standard is yet to be endorsed by the EU. The standard represents a
significant change in the accounting and reporting of leases for lessees as it
provides a single lessee accounting model, and as such, requires lessees to
recognise assets and liabilities for all leases unless the underlying asset
has a low value or the lease term is 12 months or less. Accounting
requirements for lessors are substantially unchanged from IAS 17. The impact
of the standard on the Group is currently being assessed and it is not yet
practicable to quantify the effect of IFRS 16 on these consolidated financial
statements;
- IFRS 9 'Financial Instruments' replaces all phases of the financial
instruments project and IAS 39 'Financial Instruments: Recognition and
Measurement'. The standard is effective from 1 January 2018 and introduces:
new requirements for the classification and measurement of financial assets
and financial liabilities; a new model based on expected credit losses for
recognising provisions; and provides for simplified hedge accounting by
aligning hedge accounting more closely with an entities risk management
methodology. It is not yet practicable to quantify the effect of IFRS 9 on the
Group. Work on the impact of the new recognition, impairment and general hedge
accounting requirements is in its early stages and we expect new processes and
changes to the existing IT systems may be required to aid the Group's
implementation of the standard; and
- IFRS 15 'Revenue from Contracts with Customers' is effective for
periods beginning on or after 1 January 2018 with early adoption permitted. It
has not yet been endorsed by the EU. The standard establishes principles based
approach for revenue recognition and is based on the concept of recognising
revenue for obligations only when they are satisfied and the control of goods
or services is transferred. It applies to all contracts with customers, except
those in the scope of other standards. It replaces the separate models for
goods, services and construction contracts under the current accounting
standards. Based on the Group's preliminary assessment from work performed to
date, the Group believes that the adoption of IFRS 15 will not have a material
impact on the consolidated results but work is still ongoing to fully quantify
its impact.
1 General information and basis of preparation (continued)
Taxes on income in the interim period are accrued using the tax rate that
would be applicable to expected total annual earnings, adjusted for actual tax
on non-underlying items.
The directors believe that the underlying profit and earnings per share
measures provide additional useful information for shareholders on the
underlying performance of the business. These measures are consistent with how
underlying business performance is measured internally. The underlying profit
before tax measure is not a recognised profit measure under IFRS and may not
be directly comparable with adjusted profit measures used by other companies.
The adjustments made to reported profit before tax are to exclude the
following:
- Profits and losses on the disposal of properties or impairments of
properties where a commitment to close has been demonstrated;
- Restructuring costs;
- Significant and one-off impairment charges and provisions that distort
underlying trading;
- Fair value movements in financial instruments;
- Costs relating to strategy changes that are not considered normal
operating costs of the underlying business;
- Adjustment in income from HSBC in relation to M&S Bank due to a
provision recognised by M&S Bank for the cost of providing redress to
customers in respect of possible mis-selling of M&S Bank financial products;
and
- Pension curtailment charge in relation to the closure to the future
accrual of the UK Defined Benefit pension scheme.
2 Segmental Information
IFRS 8 requires operating segments to be identified 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 identified as the Operating
Committee. The Operating Committee 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 Operating Committee.
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 Operating Committee assess the performance of the operating segments based
on a measure of operating profit. This measurement basis excludes the effects
of non-underlying items from the operating segments. Central costs are all
classified as UK costs and presented within UK operating profit. The Operating
Committee also monitor revenue within the segments and gross profit 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 profit within the UK segment by
subcategory.
The following is an analysis of the Group's revenue and results by reportable
segment:
26 weeks ended 1 October 2016
Management Adjustment¹ Non-underlying items2 Statutory
£m £m £m £m
Clothing & Home 1,772.9 - - 1,772.9
Food revenue 2,675.7 - - 2,675.7
UK revenue 4,448.6 - - 4,448.6
Franchised 151.7 - - 151.7
Owned 393.2 - - 393.2
International revenue 544.9 - - 544.9
Group revenue3 4,993.5 - - 4,993.5
Clothing & Home gross profit 1,004.4
Food gross profit 871.4
UK gross profit 1,875.8 (159.0) - 1,716.8
UK operating costs (1,651.3) 159.0 (178.7) (1,671.0)
M&S Bank 25.8 - (22.7) 3.1
UK operating profit 250.3 - (201.4) 48.9
International operating profit 18.4 - (4.8) 13.6
Group operating profit3 268.7 - (206.2) 62.5
Finance income 18.7 - - 18.7
Finance costs (56.1) - - (56.1)
Profit before tax 231.3 - (206.2) 25.1
1Management gross profit for the UK segment excludes certain expenses
resulting in an adjustment between cost of sales and selling and
administrative expenses of £159.0m (last half year £148.7m, last full year
£300.9m).
2Management profit excludes the adjustments made to reported profit before tax
that are one-off in nature, significant and distort the Group's underlying
performance (see note 3).
3In common with many retailers, revenue and underlying operating profit are
subject to seasonal fluctuations and are weighted towards the second half of
the year which includes the key Christmas period for the business.
2 Segmental Information (continued)
26 weeks ended 26 September 2015
Management Adjustment1 Non-underlying items2 Statutory
£m £m £m £m
Clothing & Home 1,872.7 - - 1,872.7
Food revenue 2,572.0 - - 2,572.0
UK revenue 4,444.7 - - 4,444.7
Franchised 163.6 - - 163.6
Owned 343.0 - - 343.0
International revenue 506.6 - - 506.6
Group revenue3 4,951.3 - - 4,951.3
Clothing & Home gross profit 1,059.6 - - -
Food gross profit 835.1 - - -
UK gross profit 1,894.7 (148.7) - 1,746.0
UK operating costs (1,622.1) 148.7 (19.5) (1,492.9)
M&S Bank 33.6 - (27.5) 6.1
UK operating profit 306.2 - (47.0) 259.2
International operating profit 24.7 - (21.0) 3.7
Group operating profit3 330.9 - (68.0) 262.9
Finance income 10.1 - - 10.1
Finance costs (57.0) - - (57.0)
Profit before tax 284.0 - (68.0) 216.0
2 Segmental Information (continued)
53 weeks ended 2 April 2016
Management Adjustment1 Non-underlying items2 Statutory
£m £m £m £m
Clothing & Home revenue 3,961.3 - - 3,961.3
Food revenue 5,509.5 - - 5,509.5
UK revenue 9,470.8 - - 9,470.8
Franchised 329.7 - - 329.7
Owned 754.9 - - 754.9
International revenue 1,084.6 - - 1,084.6
Group revenue3 10,555.4 - - 10,555.4
Clothing & Home gross profit 2,180.7 #N/A #N/A #N/A
Food gross profit 1,806.2 #N/A #N/A #N/A
UK gross profit 3,986.9 (300.9) - 3,686.0
UK operating costs (3,320.1) 300.9 (49.1) (3,068.3)
M&S Bank 59.9 - (50.3) 9.6
UK operating profit 726.7 - (99.4) 627.3
International operating profit 58.2 - (101.4) (43.2)
Group operating profit3 784.9 - (200.8) 584.1
Finance income 21.1 - - 21.1
Finance costs (116.4) - - (116.4)
Profit before tax 689.6 - (200.8) 488.8
Other segmental information
As at As at As at
1 Oct 2016 26 Sept 2015 2 April 2016
£m £m £m
UK assets1 7,856.0 7,736.6 8,062.3
International assets 398.0 432.6 414.1
Total assets 8,254.0 8,169.2 8,476.4
1UK assets include centrally held assets largely relating to IT systems that support the International business of £39.1m (last half year; £56.3m, last full year; £43.4m)
3 Non-underlying items
The adjustments made to reported profit before tax to arrive at underlying
profit are:
26 weeks ended 53 weeks ended
01 Oct 2016 26 Sept 2015 2 April 2016
£m £m £m
Net M&S Bank charges incurred in relation to the insurance mis-selling provision (22.7) (27.5) (50.3)
Changes to pay and pensions (154.2) - -
Strategic programmes - organisation and logistics (15.4) 7.3 9.2
Strategic programmes - UK store estate (10.6) (25.3) (37.0)
International store closures and impairments (3.3) (22.0) (31.6)
Other impairments - - (94.5)
IAS 39 Fair value movement of embedded derivative - (0.5) (2.0)
Net gain on acquisition of joint venture holding Bradford warehouse - - 5.4
Adjustment to profit before tax (206.2) (68.0) (200.8)
In order to provide shareholders with a measure of the true underlying
performance of the business and to allow a more understandable assessment of
its position, the Group makes certain adjustments to the reported profit
before tax. These adjustments for non-underlying items are made in accordance
with the Group's accounting policy and are one-off in nature, material by size
or are considered to be distortive of the true underlying performance of the
business.
Net M&S Bank charges incurred in relation to the insurance mis-selling
provision
The Group has an economic interest in M&S Bank, a wholly owned subsidiary of
HSBC, by way of a Relationship Agreement that entitles the Group to a 50%
share of the profits of M&S Bank after appropriate deductions. The Group does
not share in any losses of M&S Bank and is not obliged to refund any fees
received from HSBC although future income may be impacted by significant
one-off deductions.
Since the year ended 31 December 2012, M&S Bank has recognised in its audited
financial statements an estimated liability for redress to customers in
respect of possible mis-selling of financial products. The Group's fee income
from M&S Bank has been reduced by the deduction of the estimated liability in
both the current and prior years. The deduction in the period is £22.7m.
Changes to pay and pensions
On 25 May 2016, the Group announced proposals for a fairer, simpler and more
consistent approach to pay and premia as well as proposals to close the UK
defined benefit (DB) pension scheme to future accrual effective from 2 April
2017. Both of these changes were subject to consultation with impacted
employees. The Group completed consultation during the period.
The closure of the DB pension scheme to future accrual has resulted in a
one-off income statement charge of £127.0m as all active members transition to
deferred status. All future pensionable increases will be in line with
inflation (CPI) as opposed to the lower 1% salary cap that was applied to the
active members.
Following the completion of the consultation in respect of pay and premia, the
Group has committed to transition payments of £24.0m in respect of the premia.
The full amount of £24.0m has been recognised as a liability at 1 October
2016 as the criteria for recognition under IAS 37 are considered to have been
met at this date. The Group anticipates making further transition payments in
relation to the closure of the DB scheme, expected to be c. £25m over the next
three years.
Other costs primarily relate to third party advisory costs.
Strategic programmes - organisation and logistics
On 25 May 2016, the Group announced a wide-ranging strategic review across a
number of areas of the business including customer, brand, UK organisation, UK
store estate and International.
On 5 September 2016, the Group announced proposed changes to the UK Head
Office structure following completion of a detailed review of the UK
organisation. The proposals will result in a net reduction of c. 525 Head
Office roles achieved through a combination of fewer contractors, natural
attrition and redundancies. The anticipated costs of this strategic programme
amount to £16.0m.
These costs are partially offset in the period by a net credit relating to an
updated view of the estimated closure costs of legacy logistics sites
associated with the transition to a single tier distribution network.
3 Non-underlying items (continued)
Strategic programmes - UK store estate
The UK store review relates to a strategic multi-year programme in relation
the UK store estate announced in 2015. As part of this programme, three UK
stores have been closed or announced for closure in the period. Closure costs
of £9.8m relating to dilapidations, sublet shortfalls, accelerated
depreciation of fixtures and fittings and impairment of assets have been
recognised in the period.
As a result of historic store closures, the Group has a small non-operating
portfolio of properties. The strategy is to market the properties for sale (or
lease assignment) or to explore sub-let opportunities where a sale or
assignment is not achievable. The ongoing review of assumptions associated
with these properties has resulted in further one-off charges in the period of
£0.8m.
International store closures and impairments
The international store impairment tests have identified a number of stores
across the portfolio where current and anticipated future performance will not
support their carrying value. As a result one-off impairment charges of £7.5m
have been incurred, primarily in Asia and Western Europe.
These impairments have been partially offset by a £4.2m reversal of impairment
charges previously recognised in relation to five stores in Ireland. The
reversal of the impairment charge reflects an updated view of the future cash
flows from these stores primarily due to reductions in cost of goods following
the significant appreciation of the Euro relative to Sterling during the
period.
Other impairments
The £94.5m of other impairments in the previous full year related to UK and
International one-off impairment costs including the write-off of elements of
the new buying and merchandising system (£23.7m), goodwill relating to the
Czech and Hungarian businesses (£19.1m), the Mode brand used across European
markets (£32.4m) and the E-SAP enterprise management system (£19.3m).
IAS 39 Fair value movement of embedded derivative
The embedded derivative arose in respect of a lease contract for the Bradford
distribution warehouse held within the Lima (Bradford) S.à r.l. joint venture.
The lease contained both a rental increase cap and floor resulting in an
embedded derivative being recognised on the balance sheet and fair valued each
reporting period. The fair value movement in the derivative in the prior year
until acquisition was a £2.0m charge. The asset was derecognised from the
balance sheet following the Group's acquisition of the joint venture holding
the Bradford warehouse and as a result no charge is recognised in the current
period.
Net gain on acquisition of joint venture holding Bradford warehouse
On 29 February 2016, the Group purchased the remaining 50% of the Lima
(Bradford) S.à r.l. joint venture for cash consideration of £56.2m. In
accordance with IFRS 3 'Business Combinations' this acquisition was treated as
a stepped acquisition resulting in a one-off fair value gain of £27.1m.
Following the Group's acquisition, the embedded derivative in respect of the
lease contract for the warehouse (see note above 'IAS 39 Fair value movement
of embedded derivative) has been derecognised from the balance sheet,
resulting in a one-off cost of £21.7m.
4 Finance income/(costs)
26 weeks ended 53 weeks ended
1 Oct 2016 26 Sept 2015 2 April 2016
£m £m £m
Bank and other interest receivable 4.0 2.6 5.8
Pension net finance income 14.7 7.5 15.3
Finance income 18.7 10.1 21.1
Interest on bank borrowings (1.3) (2.0) (3.6)
Interest payable on syndicated bank facility (3.0) (2.8) (5.5)
Interest payable on medium-term notes (44.2) (44.1) (89.9)
Interest payable on finance leases (0.9) (0.9) (1.9)
Unwind of discount on financial instruments (0.2) - (0.4)
Unwind of discount on provisions (0.3) - (0.4)
Unwind of discount on partnership liability to the Marks and Spencer UK Pension Scheme (note 9) (6.2) (7.2) (14.7)
Finance costs
- More to follow, for following part double click ID:nRSH5572OcRecent news on Marks and Spencer
See all newsREG - Marks and Spencer Gp - Total Voting Rights
AnnouncementREG - Marks and Spencer Gp - Director/PDMR Shareholding
AnnouncementREG - Marks and Spencer Gp - Cyber Incident - Further Update
AnnouncementREG - Marks and Spencer Gp - Cyber Incident Update
AnnouncementREG - Marks and Spencer Gp - Total Voting Rights
Announcement