Annual Report and Accounts 2008
13 Earnings per share
| 2008 | 2007 | |
|---|---|---|
| Basic earnings per share – continuing operations | 86.8p | 73.3p |
| Basic loss per share – discontinued operations | (8.9p) | (4.1p) |
| Basic earnings per share – total | 77.9p | 69.2p |
| Normalised basic earnings per share | 94.3p | 84.4p |
| Diluted earnings per share – continuing operations | 86.1p | 72.8p |
| Diluted loss per share – discontinued operations | (8.7p) | (4.1p) |
| Diluted earnings per share – total | 77.4p | 68.7p |
| Normalised diluted earnings per share | 93.6p | 83.9p |
Basic earnings per share is calculated by dividing the earnings attributable to equity shareholders of £118.8m (2007: £105.1m) by the weighted average number of ordinary shares in issue during the year, excluding those held by employee share ownership trusts and those held as treasury shares which are both treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares in issue during the year is adjusted to include the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The reconciliation of basic and diluted weighted average number of ordinary shares is as follows:
| 2008 | 2007 | |
|---|---|---|
| Basic weighted average shares | 152,457,518 | 151,914,241 |
| Adjustment for dilutive potential ordinary shares | 1,077,289 | 976,000 |
| Diluted weighted average shares | 153,534,807 | 152,890,241 |
The normalised basic and normalised diluted earnings per share have been calculated in addition to the basic and diluted earnings per shares required by IAS 33 since, in the opinion of the Directors, they reflect the underlying performance of the business’s operations more appropriately.
The reconciliation of the earnings and earnings per share to their normalised equivalent is as follows:
| 2008 | 2007 | |||||
|---|---|---|---|---|---|---|
| £m | Basic EPS p |
Diluted EPS p |
£m | Basic EPS p |
Diluted EPS p |
|
| Profit attributable to equity shareholders | 118.8 | 77.9 | 77.4 | 105.1 | 69.2 | 68.7 |
| Loss from discontinued operations | 13.4 | 8.9 | 8.7 | 6.3 | 4.1 | 4.1 |
| Profit from continuing operations | ||||||
| attributable to equity shareholders | 132.2 | 86.8 | 86.1 | 111.4 | 73.3 | 72.8 |
| Intangible asset amortisation | 55.2 | 36.2 | 36.0 | 32.9 | 21.7 | 21.6 |
| Exceptional items | 30.9 | 20.3 | 20.1 | 15.8 | 10.4 | 10.3 |
| Profit on disposal of non-current assets | (5.1) | (3.3) | (3.3) | (16.2) | (10.7) | (10.6) |
| Finance cost | 11.5 | 7.5 | 7.5 | – | – | – |
| Tax relief on goodwill and exceptional items | (75.5) | (49.5) | (49.2) | (12.1) | (8.0) | (7.9) |
| Normalised profit from continuing operations | 149.2 | 98.0 | 97.2 | 131.8 | 86.7 | 86.2 |
| Normalised loss from discontinued operations | (5.5) | (3.7) | (3.6) | (3.4) | (2.3) | (2.3) |
| Normalised profit attributableto equity shareholders | 143.7 | 94.3 | 93.6 | 128.4 | 84.4 | 83.9 |