Marks and Spencer 1998 Annual Report Download - page 58

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The calculation of earnings per ordinary share is based on earnings after tax and minority interests of £828.9m (last year £754.6m), and
on 2,850,062,000 ordinary shares (last year 2,825,773,000), being the weighted average number of ordinary shares in issue during the
year ended 31 March 1998.
At 31 March 1998, directors, senior employees and retired staff held ex ercisable options in respect of 5,018,728 ordinary shares (last
year 6,713,270
). There were options outstanding under the Save As You Earn Share Option Scheme in respect of 56,133,920 ordinary
shares (last year 54,101,856). If all outstanding options had been ex ercised, the dilution of earnings per share would not have been
material.
An adjusted earnings per share figure has been calculated in addition to the earnings per share required by FRS3 and is based on earnings
ex cluding the effect of the exceptional operating income. It has been calculated to allow the shareholders to gain a clearer understanding
of the trading per formance of the Group. Details of the adjusted earnings per share are set out below:
1998 1997
Earnings per share (Defined by FRS3) 29.1p 26.7p
Exceptional operating income (net of tax ation) (1.3)p Ð
Adjusted earnings per share 27.8p 26.7p
The IIMR earnings per share at 29.2p (last year 26.8p) is not significantly different from the basic earnings per share as defined in
FRS3. Under this measure, standard earnings are adjusted to eliminate cer tain capital items.
The average number of employees of the Group during the year was:
1998 1997
UK stores Management and super visory categories 3,838 3,756
Other 50,533 49,220
UK head office Management and super visory categories 2,249 2,082
Other 1,546 1,469
Financial Services Management and supervisor y categories 115 95
Other 1,071 890
Overseas 11,945 10,696
71,297 68,208
If the number of hours worked was conver ted on the basis of a normal working week, the equivalent average number of full-time
employees would have been 48,200 (last year 45,805).
The aggregate remuneration and associated costs of Group employees were: 1998 1997
£m £m
Wages and salaries 737.4 691.9
UK profit sharing (see note 9C) 22.5 23.5
Social security costs 54.8 53.0
Pension costs (see note 9A ) 111.1 86.5
Staff welfare and other personnel costs 76.7 67.5
1,002.5 922.4
Classified as:
Staff costs (see note 3) 985.7 907.8
Manufacturing cost of sales 16.8 14.6
1,002.5 922.4
8 EARNINGS PER SHARE
9 EMPLOYEES
NO TES TO TH E FIN AN CIAL STATEM EN TS
56