Financial Management at Marks and Spencer Case Study

Financial counsel at Marks and Spencer - Case Study ExampleMarks and Spencer have achieved great success in the last three years and now it is in the progress focusing on core communication channel and ai momentg at becoming more customer oriented and flexible employment offering a abundant selection of quality goods.The financial performance of Marks and Spencer during 2008 was extremely pleasing for the stakeholders. The total revenue has been increase by 5.1 % with highly strong performance in its domestic trade. But the total revenue was increase by 10.1 % in 2007 with high performance in both its home and international business. It is reported that during 2008, 4.8% of post on the weighted average method has been added to the general merchandise. Both Gross rim of 38.9% and Net Margin of 12.2% show better performance than its last years financial state. During 2007 doughability has been change magnitude to 11.2% from 9.6% and 7.4% of 2006 and 2005 meshingability recor ds respectively. It shows the success achieved by Marks and Spencer in its business operation both in domestic and international trade.Marks and Spencers UK sell has been accounted to be 8,309.1m during 2008, but it was 7,975.5 m and 7,275 in 2007 and 2006 respectively. The international retail trade of M&S was 522.7 min 2006 and 610.6 in 2007, and the international trade in 2008 has been increased further and accounted to be 712.9m. Group operating profit has also been constantly increasing for the last few years. Group operating profit of its UK retail business has been accounted to be 972.9m in 2008 with a slight increase from the figure of 956.5 min 2007. Group operating profit of its international trade has been accounted to be 116.4m in 2008 with an increase of 28.9 m from 2007s figure of 87.5m. In short, both domestic and international trades of Marks and Spencer have been constantly increasing for the last few years and getting a rather outstanding loyalty brand name among the customers. Operating profit on property disposals was 27 jillion but it was 1.9 million during 2007. The report also shows that the general merchandise gross margin was up by 120 basis points to 52.6% which was caused by improved buying. Net finance represents before exceptional items were increased by 4.3% after pension finance income of 58.9 million, but it was 20.8 million in 2007. Net finance cost during 2007 has been reported to be decreased to18.3% reflecting a reduction in the average net debt. Earnings per piece have been increased by 28.7% to 40.4p per share that reflected as a great advantage to attract more investors than before. bullion outflow has been reported to be 917.5 million in 2008 but cash inflow during 2007 was really strong as it generated a net cash flow of 231.1 million in 2007. In 2007, Cash inflow from continuing operating activities had been increased by 259 million. Cash inflow from continuing operation in 2008 has been decreased by 206.6 milli on that has reflected a higher working capital outflow. In 2007, there was a reduction in cash outflow on leasehold repayments as compared to 2006 and hence it resulted in an increase in the working capital which was accounted to be 114.1 million.