NOTES TO THE FINANCIAL STATEMENTS
11. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding those held in the employee share trust (note 35), which are treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to include all dilutive potential ordinary shares. The Group has two types of dilutive potential ordinary shares - 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; and the contingently issuable shares under the Group's Performance and Co-investment Plan and the deferred shares element of the Incentive Bonus Plan, to the extent that the performance criteria for vesting of the awards are expected to be met. The convertible bonds issued in August 2009 did not have a dilutive effect on earnings per share during the year.
The weighted average number of shares and earnings used in the calculations were:
2010 |
2009 |
|
Number of shares (millions) |
||
For basic earnings per share |
350.0 |
348.1 |
Effect of dilutive potential ordinary shares from share options |
1.5 |
1.7 |
For diluted earnings per share |
351.5 |
349.8 |
Underlying basic and diluted earnings per share
Underlying earnings per share are presented to provide a more useful comparison on business trends and performance. The term underlying is not a defined term under IFRS and may not be comparable with a similarly titled profit measure reported by other companies. Underlying earnings have been calculated:
2010 |
2009 (Restated note 5) |
|||||
Profit after tax |
Earnings per share |
Profit after tax |
Earnings per share |
|||
Basic |
Diluted |
Basic |
Diluted |
|||
Statutory earnings per share |
139.5 |
39.9 |
39.7 |
89.8 |
25.8 |
25.7 |
Restructuring costs (net of tax) |
4.4 |
1.2 |
1.2 |
3.3 |
0.9 |
0.9 |
Amortisation of intangibles |
0.3 |
0.1 |
0.1 |
1.2 |
0.3 |
0.3 |
Deferred tax |
1.3 |
0.4 |
0.4 |
38.3 |
11.1 |
11.0 |
Underlying earnings per share |
145.5 |
41.6 |
41.4 |
132.6 |
38.1 |
37.9 |