Adoption of IFRS

Marks & Spencer Group PLC
11 October 2005

Issued: Tuesday 11 October 2005



                          MARKS AND SPENCER GROUP PLC
            ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

Marks & Spencer previously reported under UK Generally Accepted Accounting
Principles (UK GAAP).  In May 2005 as part of its preparation for the adoption
of International Financial Reporting Standards (IFRS), the Group made available
financial information for the year ended 2 April 2005 prepared in accordance
with the measurement rules of IFRS.

Since May, IFRS have been subject to ongoing review and further interpretation.
One of the areas subject to such review has been leases that contain
predetermined, fixed rental increases.  Recent comments by the International
Financial Reporting Interpretations Committee (IFRIC) have indicated that under
IFRS, it is necessary to account for these leases such that the predetermined,
fixed rental payments are recognised on a straight-line basis over the life of
the lease.  Under UK GAAP, the Group accounted for these property lease rentals
such that the increases were charged in the year that they arose.  This
represents a change from the IFRS information previously announced.  The impact
of this change is a reduction in profit before tax of £4.5m for the 52 weeks
ended 2 April 2005.

Set out below is a revised summary of the impact of the accounting policy
changes arising from the adoption of IFRS on the results for the 52 weeks ended
2 April 2005, together with the impact on the results for the 26 weeks ended 2
October 2004.

Summary of changes

                                                    52 weeks ended 2 April 2005
                                   UK GAAP            IFRS      Fixed    Revised      Total     Change
                                            (As previously    Rentals       IFRS     Change          %
                                                  reported

Turnover (£m)                      7,942.3         7,942.3          -    7,942.3          -          -

Operating Profit before
Exceptionals (£m)                    709.4           689.2      (4.5)      684.7     (24.7)      (3.5)

Profit before Tax and
Exceptionals (£m)                    618.5           596.0      (4.5)      591.5     (27.0)      (4.4)

Adjusted EPS (pence)                  21.9            21.0      (0.2)       20.8      (1.1)      (5.0)




                                                               26 weeks ended 2 October 2004

                                                            UK GAAP        IFRS      Change     Change
                                                                                                     %

Turnover (£m)                                               3,819.7     3,819.7           -          -

Operating Profit before Exceptionals (£m)                     323.2       312.8      (10.4)      (3.2)

Profit before Tax and Exceptionals (£m)                       292.7       281.2      (11.5)      (3.9)

Adjusted EPS (pence)                                            8.9         8.5       (0.4)      (4.5)


Appendix 1 to this release sets out income statements for the 26 weeks ended 2
October 2004 and the 52 weeks to 2 April 2005 in IFRS format.  These reflect
both the adjustments detailed above, which are required to apply the accounting
policy changes arising from the adoption of IFRS, and also the reclassifications
required to comply with the IFRS format of presentation.  In particular:

•        The results of discontinued operations (including the profit or loss on
disposal), are now presented below profit after tax as a single line on an after
tax basis; and

•        Certain exceptional items required by FRS 3 to be presented below
operating profit are now included within operating profit.

Appendix 2 provides a segmental analysis of operating profit between UK Retail
and International operations under previously reported UK GAAP and revised IFRS.

Contacts:

Investor Relations:
Amanda Mellor                       [phone]
Sarah McGlyne                       [phone]

Statements made in this announcement that look forward in time or that express
management's beliefs, expectations or estimates regarding future occurrences and
prospects are 'forward-looking statements' within the meaning of the United
States federal securities laws. These forward-looking statements reflect Marks &
Spencer's current expectations concerning future events and actual results may
differ materially from current expectations or historical results. Any such
forward-looking statements are subject to various risks and uncertainties,
including failure by Marks & Spencer to predict accurately customer preferences;
decline in the demand for products offered by Marks & Spencer; competitive
influences; changes in levels of store traffic or consumer spending habits;
effectiveness of Marks & Spencer's brand awareness and marketing programmes;
general economic conditions or a downturn in the retail or financial services
industries; acts of war or terrorism worldwide; work stoppages, slowdowns or
strikes; and changes in financial and equity markets.

Appendix 1

Consolidated income statement

                                                                     26 weeks ended          52 weeks ended
                                                                         2 Oct 2004            2 April 2005
                                                                        As restated             As restated
                                                                                 £m                      £m

    Revenue (1)                                                             3,628.6                 7,710.3

    Operating Profit
    Before exceptional charges (2)                                            289.4                   653.2
    Exceptional operating charges                                            (81.0)                  (50.6)
                                                                              208.4                   602.6

    Interest payable and similar charges                                     (47.1)                 (121.3)
    Interest receivable                                                        15.5                    28.1

    Profit on ordinary activities before taxation (3)                         176.8                   509.4

    Analysed between
    Before exceptional charges                                                257.8                   560.0
    Exceptional operating charges                                            (81.0)                  (50.6)

    Income tax expense                                                       (68.3)                 (150.5)

    Profit on ordinary activities after taxation                              108.5                   358.9

    Profit from discontinued operations                                        21.9                   227.3

    Profit for the period attributable to  shareholders                       130.4                   586.2

    (1) Relates to continuing operations only and therefore excludes the revenue derived from discontinued
    operations.
                                                                         26 weeks ended          52 weeks ended
                                                                             2 Oct 2004            2 April 2005
                                                                            As restated             As restated
                                                                                     £m                      £m

    (2) Operating profit before exceptionals
    As previously reported                                                        323.2                   709.4
    IFRS adjustments                                                             (10.4)                  (24.7)
    Operating profit from discontinued operations                                (24.5)                  (32.3)
    IFRS adjustments from discontinued operations                                   1.1                     1.2
    Reclassification of exceptional items                                             -                   (0.4)
                                                                                  289.4                   653.2

    (3) Profit before tax and exceptionals
    As previously reported                                                        292.7                   618.5
    IFRS adjustments                                                             (11.5)                  (27.0)
    Operating profit from discontinued operations                                (24.5)                  (32.3)
    IFRS adjustments from discontinued operations                                   1.1                     1.2
    Reclassification of exceptional items                                             -                   (0.4)
                                                                                  257.8                   560.0


Appendix 2

                                                         26 weeks ended
                                                         2 October 2004                            Change
Operating Profit - Continuing                             UK GAAP        IFRS        Change           %

UK Retail:
Before exceptional operating charges                        269.9       260.2         (9.7)         -3.6%
Exceptional operating charges                              (81.0)      (81.0)             -             -
                                                            188.9       179.2         (9.7)         -5.1%
International Retail:
M&S                                                          27.6        27.7           0.1          0.4%
Kings                                                         1.2         1.5           0.3         25.0%
                                                             28.8        29.2           0.4          1.4%
Total - continuing:
Before exceptional operating charges                        298.7       289.4         (9.3)         -3.1%
Exceptional operating charges                              (81.0)      (81.0)             -             -

                                                            217.7       208.4         (9.3)         -4.3%


                                                         52 weeks ended
                                                          2 April 2005                             Change
Operating Profit - Continuing                             UK GAAP        IFRS        Change           %

UK Retail:
Before exceptional operating charges                        612.1       588.3        (23.8)         -3.9%
Exceptional operating charges                              (91.4)      (60.3)          31.1         34.0%
                                                            520.7       528.0           7.3          1.4%
International Retail:
M&S                                                          60.7        60.4         (0.3)         -0.5%
Kings                                                         4.3         4.5           0.2          4.7%
Exceptional operating income                                    -         9.7           9.7
                                                             65.0        74.6           9.6         14.8%

Total - continuing:
Before exceptional operating charges                        677.1       653.2        (23.9)         -3.5%
Exceptional operating charges                              (91.4)      (50.6)          40.8         44.6%

                                                            585.7       602.6          16.9          2.9%




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