Marks and Spencer 2002 Annual Report Download - page 38

36 Marks and Spencer Group p.l.c.
Notes to the financial statements
10. Earnings per share
The calculation of earnings per ordinary share is based on earnings after tax and minority interests and the weighted
average number of ordinary shares in issue during the year.
An adjusted earnings per share figure has been calculated in addition to the earnings per share required by FRS14,
‘Earnings per Share’ and is based on earnings excluding the effect of the exceptional items. It has been calculated
to allow shareholders to gain a clearer understanding of the trading performance of the Group. Details of the
adjusted earnings per share are set out below:
2002 2001
Basic Diluted
Basic Diluted pence pence
pence pence £m per share per share
£m per share per share As restated As restated As restated
Basic earnings 153.0 5.4 5.4 (5.5) (0.2) (0.2)
Exceptional operating charges –––19.3 0.7 0.7
(Profit)/loss on sale of property and other fixed assets (41.2) (1.5) (1.5) 83.2 2.9 2.9
Loss on sale/termination of operations 353.5 12.4 12.3 1.7 0.1 0.1
Provision for loss on operations to be discontinued –––222.7 7.7 7.7
Adjusted earnings 465.3 16.3 16.2 321.4 11.2 11.2
Operating (profit)/loss from discontinued operations (12.6) (0.4) (0.4) 20.4 0.7 0.7
Adjusted earnings from continuing operations 452.7 15.9 15.8 341.8 11.9 11.9
The weighted average number of ordinary shares used in the calculation of earnings per share are as follows:
2002 2001
mm
Weighted average ordinary shares in issue during the year 2,841.7 2,872.4
Potentially dilutive share options under the Group’s share option schemes 23.7 9.8
Weighted average ordinary shares for diluted earnings per share 2,865.4 2,882.2
In accordance with the provisions of FRS 14, earnings per share for prior periods have not been restated as a result of
the Scheme of Arrangement.
11. Employees
The average number of employees of the Group during the year was: 2002 2001
UK stores Management and supervisory categories 3,939 3,880
Other 50,583 55,511
UK head office Management and supervisory categories 2,369 2,242
Other 1,038 1,299
Financial Services Management and supervisory categories 208 189
Other 1,370 1,355
Overseas Continuing operations 4,988 4,514
Discontinued operations 5,404 7,501
69,899 76,491
If the number of hours worked was converted on the basis of a normal working week, the equivalent average
number of full-time employees for continuing operations would have been 45,979 (last year 46,466) and for
discontinued operations 4,197 (last year 5,747).
The aggregate remuneration and associated costs of Group employees were:
2002 2001
Continuing Discontinued Continuing Discontinued
operations operations Total operations1operations Total
£m £m £m £m £m £m
Wages and salaries 799.7 87.0 886.7 734.9 115.1 850.0
UK profit sharing (see note 11C) 12.6 – 12.6 8.5 – 8.5
Social security costs 48.8 11.5 60.3 45.3 14.7 60.0
Pension costs (see note 11A) 142.7 5.2 147.9 114.1 6.0 120.1
Employee welfare and other personnel costs 89.8 9.7 99.5 84.3 15.0 99.3
Employee costs21,093.6 113.4 1,207.0 987.1 150.8 1,137.9
Classified as:
Employee costs (see note 4) 1,093.6 99.8 1,193.4 987.1 130.7 1,117.8
Manufacturing cost of sales – 13.6 13.6 – 20.1 20.1
1,093.6 113.4 1,207.0 987.1 150.8 1,137.9
1After exceptional charges of £17.0m.
2Total employee costs include salary and benefits paid to a former director who was an employee of the Group for the period to
30 June 2001.