Notes to the consolidated financial statements

Basic

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held in the Employee Share Ownership Trust or in Treasury.

(XLS:) Download Excel

 

Year to 31 March 2011

Year to 31 March 2010

 

Continuing operations

Discontinued operations

Total

Continuing operations

Discontinued operations

Total

Profit/(loss) attributable to equity holders of the Company (£million)

196

(33)

163

(21)

36

15

Weighted average number of ordinary shares in issue (millions)

461.5

461.5

461.5

457.0

457.0

457.0

Basic earnings/(loss) per share

42.6p

(7.3)p

35.3p

(4.7)p

8.0p

3.3p

Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares. Potential dilutive ordinary shares arise from share options, and the Group’s long term share incentive plans. For non-performance related share plans, a calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company’s shares) based on the monetary value of the subscription rights attached to outstanding share options. For performance related share plans, a calculation is performed to determine the satisfaction or otherwise, of the forecast performance conditions at the end of the reporting period, and the number of shares which would be issued based on the forecast status at the end of the reporting period.

(XLS:) Download Excel

 

Year to 31 March 2011

Year to 31 March 2010

 

Continuing operations

Discontinued operations

Total

Continuing operations

Discontinued operations

Total

Profit/(loss) attributable to equity holders of the Company (£million)

196

(33)

163

(21)

36

15

Weighted average number of diluted shares in issue (millions)

468.8

468.8

468.8

457.0

457.0

457.0

Diluted earnings/(loss) per share

41.9p

(7.2)p

34.7p

(4.7)p

8.0p

3.3p

The adjustment for the dilutive effect of share options at 31 March 2011 was 7.3 million shares (2010 – nil).

Adjusted earnings per share

Adjusted earnings per share is stated excluding exceptional items and amortisation of acquired intangible assets as follows:

(XLS:) Download Excel

 

 

Year to 31 March

Continuing operations

Notes

2011

2010

Profit/(loss) attributable to equity holders of the Company (£million)

 

196

(21)

Adjustments (£million):

 

 

 

– exceptional items

7

5

298

– amortisation of acquired intangible assets

15

13

14

– tax effect of the above adjustments

 

8

(121)

– exceptional tax credit

11

(8)

(15)

Adjusted profit (£million)

 

214

155

 

 

 

 

Adjusted basic earnings per share from continuing operations

 

46.5p

33.9p

Adjusted diluted earnings per share from continuing operations

 

45.7p

33.7p

For the purposes of the adjusted diluted earnings per share from continuing operations for the year ended 31 March 2010, the adjustment for the dilutive effect of share options was 2.3 million.