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Marks and Spencer Group plc Annual report and financial statements 2011
86
Notes to the financial statements continued
8 Earnings per share
The calculation of earnings per ordinary share is based on earnings after tax and the weighted average number of ordinary shares in
issue during the year.
The underlying earnings per share figures have also been calculated based on earnings before profits and losses on the disposal of
properties, impairment charges, pension credits arising on changes of the defined benefit pension schemes, and non-cash fair value
movements in financial instruments, and costs relating to strategic changes that are not considered normal operating costs of the
rs to gain an understanding of the underlying
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive
potential ordinary shares. The Group has only one class of dilutive potential ordinary shares being those share options granted to
employees where the exercise price is less than the average market price of the Company’s ordinary shares during the year.
Details of the underlying earnings per share are set out below:
2011
£m
2010
£m
Profit attributable to equity holders of the parent 612.0 526.3
(Less)/add (net of tax):
Profit on property disposals (2.9) (8.1)
IAS 19 Ireland one-off pension credit (9.4) –
IAS 36 Impairment of investment property 6.3 –
IAS 39 Fair value movement of financial instrument (54.3) –
IAS 39 Recognition of embedded derivative (15.1) –
Strategic programme costs 11.5 –
Underlying profit attributable to equity holders of the parent 548.1 518.2
Million Million
Weighted average number of ordinary shares in issue 1,577.1 1,572.2
Potentially dilutive share options under Group’s share option schemes 15.6 14.3
Weighted average number of diluted ordinary shares 1,592.7 1,586.5
Pence Pence
Basic earnings per share 38.8 33.5
Diluted earnings per share 38.4 33.2
Underlying basic earnings per share 34.8 33.0
Underlying diluted earnings per share 34.4 32.7
9 Dividends
2011
per share
2010
per share
2011
£m
2010
£m
Dividends on equity ordinary shares
Paid final dividend 9.5p 9.5p 149.7 149.6
Paid interim dividend 6.2p 5.5p 97.8 86.4
15.7p 15.0p 247.5 236.0
In addition, the directors have proposed a final dividend in respect of the year ended 2 April 2011 of 10.8p per share amounting to a
dividend of £171.2m. It will be paid on 15 July 2011 to shareholders who are on the Register of Members on 3 June 2011. In line with
the requirements of IAS 10 – ‘Events after the Reporting Period’, this dividend has not been recognised within these results.
The Group’s policy to grow dividends in line with underlying earnings per share is explained in the Financial review on page .
trading performance of the Group.
underlying business (see note 5). These have been calculated to allow the shareholde
36