| |
Notes to the Financial Statements
|
| 5 Basic and diluted earnings per share |
| Basic and diluted earnings per share are calculated
on the profit on ordinary activities after taxation and on the weighted
average number of shares in issue during the year as shown below: |
| |
| |
|
2003 |
2002 |
| |
|
|
|
|
| |
|
Weighted |
|
|
Weighted |
|
| |
|
average |
|
|
average |
Profit |
| |
|
number |
Profit after |
|
number |
after |
| |
|
of shares |
taxation |
|
of shares |
taxation |
| |
|
m |
£m |
|
m |
£m |
|
| Earnings per share |
– Basic |
512.5 |
139.3 |
|
518.3 |
159.4 |
| |
– Diluted |
554.0 |
149.0 |
|
596.4 |
180.4 |
|
| Adjusted earnings per share |
– Basic |
512.5 |
140.4 |
|
518.3 |
166.6 |
| |
– Diluted |
554.0 |
150.1 |
|
596.4 |
187.6 |
|
The weighted average number of shares
has changed as a result of the redemption on 24 June 2002 of the 61/2%
Convertible Bonds 2007 and from the impact of shares purchased and
cancelled during the year. The weighted average number of shares used
for calculating diluted earnings per share includes the dilutive effect
of convertible bonds and share options, and totals 41.5m (2002: 78.1m).
Diluted earnings per share reflects the £9.7m (2002: £21.0m) post
tax profit adjustment arising from assuming the conversion of convertible
bonds.
Adjusted earnings per share are calculated by excluding the post tax
profit adjustment of £1.1m (2002: £7.2m) which is the capital allowance
effect of FRS 19 which is not expected to arise, as described in
note 17. |
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