FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

52 weeks ended

53 weeks ended

2 April 2022

3 April 2021

Total

Total

Notes

£m

£m

Revenue

2, 3

10,885.1

9,155.7

Share of result in associate - Ocado Retail Limited

3, 5, 29

(18.6)

64.2

Operating profit/(loss)

2, 3, 5

572.2

(30.7)

Finance income

5, 6

33.9

57.4

Finance costs

5, 6

(214.4)

(236.1)

Profit/(loss) before tax

4, 5

391.7

(209.4)

Income tax (expense)/credit

7

(82.7)

8.2

Profit/(loss) for the year

309.0

(201.2)

Attributable to:

Owners of the parent

306.6

(198.0)

Non-controlling interests

2.4

(3.2)

309.0

(201.2)

Earnings/(loss) per share

Basic earnings/(loss) per share

8

15.7p

(10.1p)

Diluted earnings/(loss) per share

8

15.1p

(10.1p)

Reconciliation of profit before tax and adjusting items:

Profit/(loss) before tax

391.7

(209.4)

Adjusting items

5

131.2

259.7

Profit before tax and adjusting items - non-GAAP measure

522.9

50.3

Adjusted earnings per share - non-GAAP measure

Adjusted basic earnings per share

8

21.7p

1.4p

Adjusted diluted earnings per share

8

20.9p

1.4p

124 Marks and Spencer Group plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

52 weeks ended

53 weeks ended

2 April 2022

3 April 2021

Notes

£m

£m

Profit/(loss) for the year

309.0

(201.2)

Other comprehensive income/(expense):

Items that will not be reclassified subsequently to profit or loss

Remeasurements of retirement benefit schemes

11

357.0

(1,352.0)

Tax (charge)/credit on retirement benefit schemes

(127.6)

256.5

Loss on disposal of investment held at fair value through

(3.7)

other comprehensive income ("FVOCI")

16

-

225.7

(1,095.5)

Items that may be reclassified subsequently to profit or loss

Foreign currency translation differences

- movements recognised in other comprehensive income

(13.5)

(27.7)

- reclassified and reported in profit or loss

(0.5)

3.7

Cash flow hedges

- fair value movements recognised in other comprehensive income

21

91.3

(215.5)

- reclassified and reported in profit or loss

21

(10.5)

26.5

Tax (charge)/credit on cash flow hedges

(14.7)

37.0

52.1

(176.0)

Other comprehensive income/(expense) for the year, net of tax

277.8

(1,271.5)

Total comprehensive income/(expense) for the year

586.8

(1,472.7)

Attributable to:

Owners of the parent

584.4

(1,469.5)

STATEMENTSFINANCIAL

Non-controlling interests

2.4

(3.2)

586.8

(1,472.7)

Annual Report & Financial Statements 2022 125

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at

As at

2 April 2022

3 April 2021

Notes

£m

£m

Assets

Non-current assets

Intangible assets

14

192.5

232.0

Property, plant and equipment

15

4,902.3

5,058.6

Investment property

15.0

15.2

Investments in joint ventures and associates

29

810.9

825.8

Other financial assets

16

4.5

9.7

Retirement benefit asset

11

1,043.9

639.2

Trade and other receivables

17

270.6

261.4

Derivative financial instruments

21

21.4

0.3

7,261.1

7,042.2

Current assets

Inventories

5

706.1

624.6

Other financial assets

16

17.6

18.4

Trade and other receivables

17

217.1

209.6

Derivative financial instruments

21

43.6

32.8

Current tax assets

-

35.4

Cash and cash equivalents

18

1,197.9

674.4

2,182.3

1,595.2

Total assets

9,443.4

8,637.4

Liabilities

Current liabilities

Trade and other payables

19

1,960.9

1,599.0

Partnership liability to the Marks & Spencer UK Pension Scheme

12

71.9

124.9

Borrowings and other financial liabilities

20

247.2

432.8

Derivative financial instruments

21

3.2

96.0

Provisions

22

53.6

43.1

Current tax liabilities

34.0

-

2,370.8

2,295.8

Non-current liabilities

Retirement benefit deficit

11

5.7

7.8

Trade and other payables

19

188.2

192.3

Partnership liability to the Marks & Spencer UK Pension Scheme

12

120.4

68.6

Borrowings and other financial liabilities

20

3,561.0

3,659.9

Derivative financial instruments

21

0.4

10.7

Provisions

22

91.8

74.2

Deferred tax liabilities

23

187.2

42.3

4,154.7

4,055.8

Total liabilities

6,525.5

6,351.6

Net assets

2,917.9

2,285.8

Equity

Issued share capital

24

19.7

489.2

Share premium account

910.6

910.4

Capital redemption reserve

2,680.4

2,210.5

Hedging reserve

21

17.6

(54.8)

Cost of hedging reserve

21

3.6

4.6

Other reserve

(6,542.2)

(6,542.2)

Foreign exchange reserve

(73.9)

(59.9)

Retained earnings

5,897.9

5,325.2

Equity attributable to owners of the parent

2,913.7

2,283.0

Non-controlling interests

4.2

2.8

Total equity

2,917.9

2,285.8

The financial statements were approved by the Board and authorised for issue on 24 May 2022. The financial statements also comprise notes 1 to 32.

Steve Rowe, Chief Executive Officer

Eoin Tonge, Chief Financial Officer

126 Marks and Spencer Group plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Ordinary

Share

Capital

Foreign

Non-

share

premium

redemption

Hedging

Cost of

Other

exchange

Retained

Total

controlling

capital

account

reserve

reserve

hedging

reserve¹

reserve

earnings2

interest

Total

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

As at 29 March 2020

487.6

910.4

2,210.5

68.6

5.7 (6,542.2)

(35.9)

6,597.8

3,702.5

6.0

3,708.5

Loss for the year

-

-

-

-

-

-

-

(198.0)

(198.0)

(3.2)

(201.2)

Other comprehensive

(expense)/income:

Foreign currency translation

- movements recognised in

other comprehensive income

-

-

-

-

-

-

(27.7)

-

(27.7)

-

(27.7)

- reclassified and reported

in profit or loss

-

-

-

-

-

-

3.7

-

3.7

-

3.7

Remeasurements of

retirement benefit schemes

-

-

-

-

-

-

-

(1,352.0)

(1,352.0)

-

(1,352.0)

Tax credit on retirement

benefit schemes

-

-

-

-

-

-

-

256.5

256.5

-

256.5

Cash flow hedges

- fair value movement in other

comprehensive income

-

-

-

(214.2)

(1.3)

-

-

-

(215.5)

-

(215.5)

- reclassified and reported

in profit or loss

-

-

-

26.5

-

-

-

-

26.5

-

26.5

Tax on cash flow hedges

-

-

-

36.8

0.2

-

-

-

37.0

-

37.0

Other comprehensive

(expense)/income

-

-

- (150.9)

(1.1)

-

(24.0) (1,095.5) (1,271.5)

-

(1,271.5)

Total comprehensive

(expense)/income

-

-

- (150.9)

(1.1)

-

(24.0) (1,293.5) (1,469.5)

(3.2) (1,472.7)

FINANCIAL

Cash flow hedges

recognised in inventories

-

-

-

33.9

-

-

-

-

33.9

-

33.9

Tax on cash flow hedges

recognised in inventories

-

-

-

(6.4)

-

-

-

-

(6.4)

-

(6.4)

STATEMENTS

of employee share options

1.6

-

-

-

-

-

-

(1.6)

-

-

-

Transactions with owners:

Shares issued in respect

Purchase of own shares

held by employee trusts

-

-

-

-

-

-

-

(0.8)

(0.8)

-

(0.8)

Credit for share-based payments

-

-

-

-

-

-

-

19.3

19.3

-

19.3

Deferred tax on share schemes

-

-

-

-

-

-

-

4.0

4.0

-

4.0

As at 3 April 2021

489.2

910.4

2,210.5

(54.8)

4.6

(6,542.2)

(59.9)

5,325.2

2,283.0

2.8

2,285.8

Annual Report & Financial Statements 2022 127

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONTINUED

Ordinary

Share

Capital

Foreign

Non-

share

premium

redemption

Hedging

Cost of

Other

exchange

Retained

Total

controlling

capital

account

reserve

reserve

hedging

reserve¹

reserve

earnings2

interest

Total

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

£m

As at 4 April 2021

489.2

910.4

2,210.5

(54.8)

4.6

(6,542.2)

(59.9)

5,325.2

2,283.0

2.8

2,285.8

Profit for the year

-

-

-

-

-

-

-

306.6

306.6

2.4

309.0

Other comprehensive

income/(expense):

Foreign currency translation

- movements recognised in

-

-

-

-

-

-

(13.5)

-

(13.5)

-

(13.5)

other comprehensive income

- reclassified and reported

-

-

-

-

-

-

(0.5)

-

(0.5)

-

(0.5)

in profit or loss

Remeasurements of

-

-

-

-

-

-

-

357.0

357.0

-

357.0

retirement benefit schemes

Tax charge on retirement

-

-

-

-

-

-

-

(127.6)

(127.6)

-

(127.6)

benefit schemes

Loss on disposal of

-

-

-

-

-

-

-

(3.7)

(3.7)

-

(3.7)

investments held at FVOCI

Cash flow hedges

- fair value movement in other

-

-

-

92.1

(0.8)

-

-

-

91.3

-

91.3

comprehensive income

- reclassified and reported

-

-

-

(10.5)

-

-

-

-

(10.5)

-

(10.5)

in profit or loss

Tax on cash flow hedges

-

-

-

(14.5)

(0.2)

-

-

-

(14.7)

-

(14.7)

Other comprehensive

income/(expense)

-

-

-

67.1

(1.0)

-

(14.0)

225.7

277.8

-

277.8

Total comprehensive

income/(expense)

-

-

-

67.1

(1.0)

-

(14.0)

532.3

584.4

2.4

586.8

Cash flow hedges

-

-

-

6.5

-

-

-

-

6.5

-

6.5

recognised in inventories

Tax on cash flow hedges

-

-

-

(1.2)

-

-

-

-

(1.2)

-

(1.2)

recognised in inventories

Transactions with owners:

Transactions with

-

-

-

-

-

-

-

(1.7)

(1.7)

(1.0)

(2.7)

non-controlling shareholders

Shares issued in respect

0.4

0.2

-

-

-

-

-

(0.3)

0.3

-

0.3

of employee share options

Buy back and cancellation

(469.9)

-

469.9

-

-

-

-

-

-

-

-

of own shares3

Credit for share-based payments

-

-

-

-

-

-

-

38.8

38.8

-

38.8

Deferred tax on share schemes

-

-

-

-

-

-

-

3.6

3.6

-

3.6

As at 2 April 2022

19.7

910.6

2,680.4

17.6

3.6

(6,542.2)

(73.9)

5,897.9

2,913.7

4.2

2,917.9

  1. The "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.
  2. Included within retained earnings is the fair value through other comprehensive income reserve.
  3. On 8 July 2021, the Company reduced the nominal value of its 1,957,779,626 ordinary shares in issue at that date from £0.25 to £0.01. The reduction was completed by subdividing each £0.25 ordinary share in issue into one ordinary share of £0.01 and one deferred share of £0.24. All deferred shares were then bought back for total aggregate consideration of £0.01 and cancelled. The Company's issued share capital remains unchanged and each shareholder's proportionate interest in the share capital of the Company remains unchanged. Aside from the change in nominal value, the rights attaching to the ordinary shares (including voting and dividend rights and rights on a return of capital) remain unchanged.

128 Marks and Spencer Group plc

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Marks & Spencer Group plc published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 June 2022 10:51:06 UTC.