Marks and Spencer 2012 Annual Report Download - page 88

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 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, pension credits arising on changes to the defined benefit pension schemes, impairment charges, non-cash fair
value movements in financial instruments, and costs relating to strategic changes that are not considered normal operating
costs of the underlying business (see note 5). 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 underlying earnings per share are set out below:
2012
£m
2011
£m
Profit attributable to equity share holders of the company 513.1 612.0
(Less)/add (net of tax):
Profit on property disposals –(2.9)
IAS 19 Ireland one-off pension credit –(9.4)
IAS 36 Impairment of assets 39.6 6.3
IAS 39 Fair value movement of financial instrument (15.6) (54.3)
IAS 39 Fair value movement of embedded derivative 0.2 (15.1)
Strategic programme costs 13.8 11.5
Underlying profit attributable to equity share holders of the company 551.1 548.1
Million Million
Weighted average number of ordinary shares in issue 1,579.3 1,577.1
Potentially dilutive share options under Group’s share option schemes 12.9 15.6
Weighted average number of diluted ordinary shares 1,592.2 1,592.7
Pence Pence
Basic earnings per share 32.5 38.8
Diluted earnings per share 32.2 38.4
Underlying basic earnings per share 34.9 34.8
Underlying diluted earnings per share 34.6 34.4
9 Dividends
2012
per share
2011
per share
2012
£m
2011
£m
Dividends on equity ordinary shares
Paid final dividend 10.8p 9.5p 170.2 149.7
Paid interim dividend 6.2p 6.2p 97.6 97.8
17.0p 15.7p 267.8 247.5
In addition, the directors have proposed a final dividend in respect of the year ended 31 March 2012 of 10.8p per share
amounting to a dividend of £172.3m. It will be paid on 13 July 2012 to shareholders who are on the Register of Members on
1 June 2012. 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 36.