Marks and Spencer 2013 Annual Report Download - page 92

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2013 90
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 items that are one-off in nature,
significant and 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:
2013
£m
2012
£m
Profit attributable to equity shareholders of the Company 466.7 513.1
(Less)/add (net of tax):
Strategic programme costs 5.0 13.8
Restructuring costs 7.1 –
IAS 36 Impairment of assets –39.6
IAS 39 Fair value movement of put option over non controlling interest in Czech business –(15.6)
IAS 39 Fair value movement of embedded derivative (4.7) 0.2
Fair value movement on buy back of the Puttable Callable Reset medium-term notes 57.3 –
Reduction in M&S Bank income for the impact of the financial product mis-selling provision 11.8 –
Non-underlying adjustment to tax charge in respect of prior periods (20.4) –
Underlying profit attributable to equity shareholders of the Company 522.8 551.1
Million Million
Weighted average number of ordinary shares in issue 1,599.7 1,579.3
Potentially dilutive share options under Group’s share option schemes 10.6 12.9
Weighted average number of diluted ordinary shares 1,610.3 1,592.2
Pence Pence
Basic earnings per share 29.2 32.5
Diluted earnings per share 29.0 32.2
Underlying basic earnings per share 32.7 34.9
Underlying diluted earnings per share 32.5 34.6
9 Dividends
2013
per share
2012
per share
2013
£m
2012
£m
Dividends on equity ordinary shares
Paid final dividend 10.8p 10.8p 172.3 170.2
Paid interim dividend 6.2p 6.2p 99.0 97.6
17.0p 17.0p 271.3 267.8
The directors have proposed a final dividend in respect of the year ended 30 March 2013 of 10.8p per share amounting to a
dividend of £173.5m. It will be paid on 12 July 2013 to shareholders on the register of members as at close of business on 31 May
2013, subject to approval of shareholders at the Annual General Meeting, to be held on 9 July 2013. In line with the requirements of
IAS 10 – ‘Events after the reporting period’, this dividend has not been recognised within these results.
A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the
Company. The shares will go ex-dividend on 29 May 2013. For those shareholders electing to receive the DRIP the last date for
receipt of a new election is 21 June 2013.
The Group’s policy to grow dividends in line with underlying earnings per share is explained in the Financial Review on page 34.