John Lewis Partnership plc annual report and accounts 2013

Directors’ Report

 Directors’ report

The directors present their report and the audited financial statements for the year ended 26 January 2013.

Principal activity, business review and future developments

Margaret Casely-Hayford, Director of Legal Services and Company Secretary

The principal activity of the Partnership is retailing with the main trading operations being the Waitrose and John Lewis businesses. The Company controls the entities listed in note 32, comprising 30 John Lewis department stores, 9 John Lewis at home stores, johnlewis.com, 255Waitrose supermarkets, 35 Waitrose convenience stores, waitrose.com and business to business contracts in the UK and abroad and ancillary manufacturing activities (together the Partnership). A review of the business and likely future developments is included separately in the Chairman’s Statement on page 2 and Business Review on pages 3 to 28 which forms part of this Directors Report.

Key performance indicators and directors’ responsibilities

 The key performance indicators and statement of directors’ responsibilities are set out on pages 6 and 91 respectively.

Principal risks

The principal business risks are set out on pages 25 to 27 and in note 22 to the financial statements.

Corporate governance

 The Company’s statements on corporate governance can be found in the Governance Report which includes the Audit and Risk Committee Report and Remuneration Report on pages 36 to 50 of these financial statements. The Governance Report forms part of this Directors’ Report.

Going concern

The directors, after reviewing the Partnership’s operating budgets, investment plan, financing arrangements and possible downsides, consider that the Company and the Partnership have adequate financial resources to continue in operation for the foreseeable future. A full description of the Partnership’s business activities, financial position, cash flows, liquidity position, committed facilities and borrowing position, together with the factors likely to affect its future development and performance, are set out in the Business Review. The Company and Partnership have, at the date of this report, sufficient financing available for their estimated requirements for the foreseeable future and, accordingly, the directors are satisfied that it is appropriate to adopt the going concern basis in preparing the financial statements.

Dividends

Dividends on Preference stocks were £222,000 (2012: £222,000). Dividends on SIP Shares (issued in connection with BonusSave) were £1,857,000 (2012: £1,663,000).

Directors

The following directors served during the year ended 26 January 2013.

Date of Appointment - Date of Resignation

Executive directors:

Charlie Mayfield (Executive Chairman)

Marisa Cassoni - 1 June 2012

Tracey Killen

Patrick Lewis 1 October 2012  -

Mark Price

Andy Street

Helen Weir 1 June 2012 -

Partners’ Counsellor:

 Patrick Lewis - 1 October 2012

Jane Burgess  11 October 2012 -

Elected directors:

 Johnny Aisher - 3 May 2012  

Anne Buckley - 3 May 2012  

Simon Fowler  - 3 May 2012  

Steve Gardiner 3 May 2012   -

Kim Lowe

Kevin Payne 3 May 2012   -

Tony Probert - 3 May 2012  

Noel Saunders 3 May 2012   -

Dan Smith 3 May 2012   -

Independent non-executive directors: 

 David Anderson

David Barclay (Deputy Chairman)

Baroness Hogg

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