MARK AND SPENCER

Mark and Spencer- Financial Analysis



Mark and Spencer- Financial Analysis

Introduction

Marks and Spencer Group is a holding company. Through its subsidiaries, Co. is engaged in the sale of clothing and home products as well as food. Co. operates two operating segments: UK and International (McIntosh, 2001). 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.

Financial Statements of Marks and Spencer (MKS) as of 03/31/2012 in GBP

Income Statement

(In Thousands)

Total Revenue

9,934,300

EBITDA

793,600

Operating Income

733,300

Net Income

513,100

Revenue per Share

6.31

EPS - Net Income - Diluted

0.32

Share Outstanding

1,605,507

Weighted Average Shares Outstanding - Diluted

1,579,300

Weighted Average Shares Outstanding - Basic

1,592,200

Earnings per Share - Basic

0.33

Balance Sheet

(In Thousands)

Total Assets

7,273,300

Current Assets

1,460,100

Total Liabilities

4,483,100

Long Term Debt

1,948,100

Stockholders' Equity

2,790,200

Total Assets per Share

4.53

Current Liabilities

2,005,400

Net Assets per Share

1.74

Cash Flow Statement

(In Thousands)

Cash from Operations

1,203,000

Cash from Investing

(757,800)

Cash from Financing

(511,000)

Cash Flow per Share

0.76

Cash & Cash Equivalents, Beginning of Year

263,500

Cash & Cash Equivalents, End of Year

195,800

Dividend Per Share(TTM)

0.4982

High Price Last 3 Mos.

12.78

Low Price Last 3 Mos.

11.20

Avg Daily Volume Last 3 Mos.

54,965.08

History

Registered in the United Kingdom in 1926 as Marks & Spencer Ltd. Name changed to Marks and Spencer plc in 1981. Present name adopted on Mar. 19, 2002 as a result of Scheme of Arrangement. In 1975, Co. acquired a 50% (now 55%) interest in Peoples Department Stores Ltd., Toronto, Canada, operated as Marks & Spencer (Canada) Inc.

In July 1986, Marks & Spencer Canada Inc. became a private company, with the purchase of minority shareholder interests, by Co. In Aug. 1988, Co. acquired Kings Super Markets. On May 23, 1992, Co. disposed of Peoples Department Stores Inc. to Wise Stores Inc. for a cash consideration of #4,300,000 and a loan note of #9,400,000. In Dec. 1993, Co. increased its holding in Marks & Spencer (Espana) SA from 67% to 80%. On Mar. 31, 1996, Co. disposed of its interest in its Canadian subsidiary, D'Allaird's Stores to Comark Inc. at a total cost of #25,000,000 (Bevan, 2001).

On Apr. 28, 1999, Co. closed its Canadian operations. Marks & Spencer Canada, Inc. will cease to operate during the financial year ending Mar. 31, 2000. Co. was incorporated on July 23, 2001 as Marks & Spencer Group PLC. On Mar. 19, 2002, Co. acquired Marks and Spencer p.l.c. following implementation of a Scheme of Arrangement under section 425 of the Companies Act 1985. Co. is the holding company of Marks and Spence p.l.c (Chislett, 2009).

Therefore, the directors consider that to record the Scheme of Arrangement as an acquisition by Co., attributing fair values to the assets and liabilities of the Group and reflecting only the post Scheme of Arrangement results within the financial statements would fail to give a true and fair view of the Group's results and financial position. On Dec. 29, 2001, Co. sold Brooks Brothers for #157,100,000.

Annual Report Analysis of MKS

A statement analysis by Robert Swannell, the Chairman of the Board at Marks and Spencer Group, is given ...