Marks and Spencer 2005 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2005 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

MARKS AND SPENCER GROUP PLC 39
9EARNINGS PER SHARE
The calculation of earnings per ordinary share is based on earnings after tax, minority interests and non-equity dividends, 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 FRS 14 – ‘Earnings per Share’
and is based on earnings excluding the effect of the exceptional items on an after tax basis. It has been calculated to allow shareholders
to gain a clearer understanding of the underlying trading performance of the Group. Details of the adjusted earnings per share are set
out below:
2005 2004
Basic Diluted Basic Diluted
pence pence pence pence
£m per share per share £m per share per share
Basic earnings 584.2 29.1 28.9 549.3 24.2 24.1
Exceptional operating charges 72.2 3.6 3.6 29.4 1.3 1.3
Loss/(profit) on sale of property and other fixed assets 0.4––(18.7) (0.8) (0.8)
Profit on sale/closure of operations (217.6) (10.8) (10.8) –––
Adjusted earnings 439.2 21.9 21.7 560.0 24.7 24.6
Earnings from discontinued operations (30.0) (1.5) (1.5) (52.7) (2.3) (2.3)
Adjusted earnings from continuing operations 409.2 20.4 20.2 507.3 22.4 22.3
The weighted average number of ordinary shares used in the calculation of earnings per share are as follows:
2005 2004
mm
Weighted average ordinary shares in issue during the year 2,006.2 2,266.7
Potentially dilutive share options under the Group’s share option schemes 17.3 15.4
Weighted average ordinary shares for diluted earnings per share 2,023.5 2,282.1
10 EMPLOYEES
A Aggregate remuneration
The aggregate remuneration and associated costs of Group employees were:
2005 2004
Continuing Discontinued Continuing Discontinued
operations1operations Total operations1operations Total
£m £m £m £m £m £m
Wages and salaries 821.9 27.3 849.2 815.6 52.7 868.3
Social security costs 56.2 2.0 58.2 52.9 2.9 55.8
Pension costs (see note 11) 100.7 2.5 103.2 118.4 5.4 123.8
Employee welfare and other personnel costs 35.5 4.7 40.2 36.6 7.0 43.6
Employee costs 1,014.3 36.5 1,050.8 1,023.5 68.0 1,091.5
1Included within continuing operations is operating profit derived from acquisitions and exceptional items as analysed below:
2005 2004
Exceptional Exceptional
Acquired charges/ Acquired charges/
operations (income) operations (income)
£m £m £m £m
Wages and salaries 3.2 15.0 – 23.0
Social security costs 0.3 0.9 – 0.1
Pension costs (see note 11) 0.1 (11.0) ––
Employee welfare and other personnel costs 0.4 2.3 – 1.4
Employee costs 4.0 7.2 – 24.5