Marks and Spencer 2006 Annual Report Download - page 65

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63Marks and Spencer Group plc
7 DISCONTINUED OPERATIONS continued
Analysed below are the net assets of Kings Super Markets Inc as at 1 April 2006:
C Net assets of discontinued operations
2006
£m
Fixed assets 33.8
Trade and other receivables 2.8
Inventories 9.2
Cash and cash equivalents 4.8
Other financial assets 18.9
Assets held in discontinued operation 69.5
Liabilities of discontinued operation1(20.5)
Net assets of discontinued operation 49.0
1Includes £2.0m of finance leases included within financial liabilities of discontinued operations.
8 EARNINGS PER SHARE
The calculation of earnings per ordinary share is based on earnings after tax (last year earnings after tax and non-equity dividends),
and the weighted average number of ordinary shares in issue during the year.
The adjusted earnings per share figures have been calculated in addition to the earnings per share required by IAS 33 – ‘Earnings
per Share’ and is based on earnings excluding the effect of exceptional items and asset disposals. These have been calculated to
allow the shareholders to gain an understanding of the underlying trading performance of the Group.
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 adjusted earnings per share are set out below:
2006 2005
£m £m
Earnings after tax and non-equity dividends 523.1 583.4
Profit from discontinued operations (2.5) (231.2)
Earnings after tax and non-equity dividends – continuing 520.6 352.2
Exceptional operating charges and asset disposals (net of taxation) 2.0 31.5
Adjusted earnings after tax and non-equity dividends – continuing 522.6 383.7
Weighted average number of ordinary shares in issue (millions) 1,667.0 2,006.2
Potentially dilutive share options under Group’s share option schemes (millions) 14.5 12.1
1,681.5 2,018.3
A Basic earnings per share
Weighted average number of ordinary shares in issue (millions) 1,667.0 2,006.2
Basic earnings per share (pence) 31.4 29.1
Profit from discontinued operations per share (pence) (0.1) (11.5)
Basic earnings per share – continuing (pence) 31.3 17.6
Exceptional operating charges and asset disposals per share (pence) 0.1 1.6
Adjusted basic earnings per share – continuing (pence) 31.4 19.2