M&s Case Study

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The earning per shares of the company has increased to 32.5 in 2014 comapred to 28.3 in 2013 which is a good sign for the shareholders and shows that the managers performace aligned with the interset of the shareholders of the company.There has been an increase in share price of the company to 473p in jan 2015 from 451.5p in end of march 2014. Underlying group profits before tax have fallen by 3.9% to 622.9m as the UK gross margin was down by 30bps and the operating costs in the UK increased by 3.5%. There is a fall in operating profit before tax from 753m in 2013 to 694.5m in 2014 which in turn has caused a decline in ROCE and operating profit margin of the company. But the profit after tax is greater in 2014 comapred to 2013 due to lower tax rates imposed on the company resulting in higher ROE.

Despite the fall in underlying operating profit the DPS has still remained unchange to 17p per share which shows that the board has effectively discharged their stewardship function in the interst of the shareholders .There has been a total revenue of 1.2 Billion generated internationally which resulted in an increase of revenue of 6.2 % comapred to the previous year which shows the company is able to manage operations overseas efficently and has been able to establish a brand name and market for its products.

The directors of the company requested not to be considered for any increase in salary whilst the salaries for all UK emmployees were increased by 2% which is a significant sign and example of good agency theory.

The finacial statements of the comapany have been presented and prepared in accordance with the relevant accounting standards set out by the IASB.

Conclusion:

The company has overall been well managed by its managers . It has been competitive at the same time has not compromised on quality of its products and services despite the tensions in the market place in UK. It has well diversifed the business and spread the business across the globe managing to creat a brand value along with consumer confidence. The company has been able to fullfill some of its major goals relating to a more clearer and transparent disclosure of the business and its operating activities especially directors remuneration in it’s fiinancial report while being in accordance with the standards as required. The managers have dischargeed their reposibilties effectively ensuring the interests of the shareholders are taken care which is the key for every UK based company.The company has also been able to genrate 942,000 pounds for a charity wherein 1300 employess participated fulfilling its social resposibility towards the society.