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:
2005 |
2004 | |||||
|---|---|---|---|---|---|---|
| Weighted average number of shares m |
Profit after taxation £m |
Weighted average number of shares m |
Profit after taxation £m |
|||
| Earnings per share | – Basic | 509.2 | 58.7 | 488.1 | 171.5 | |
| – Diluted | 519.2 | 58.7 | 519.0 | 179.3 | ||
| Adjusted earnings per share | – Basic | 509.2 | 202.0 | 488.1 | 180.6 | |
| – Diluted | 519.2 | 202.0 | 519.0 | 188.4 | ||
| Underlying earnings per share | – Basic | 509.2 | 178.0 | 488.1 | 154.3 | |
| – Diluted | 519.2 | 178.0 | 519.0 | 162.1 | ||
The basic weighted average number of shares has changed as a result of the conversion on or before 30 July 2004 of the 6% Irredeemable Convertible Bonds.
Adjusted earnings per share are calculated by excluding the post tax profit adjustment of £17.3m (2004: £9.1m) which is the capital allowance effect of FRS 19 which is not expected to arise, as described in note 22, in addition to the post tax effect of £126m of the exceptional item described in note 5.
Underlying earnings per share is calculated by taking the underlying profit before taxation (disclosed in note 3) and adjusting for related taxation (2005: credit £3.2m; 2004: credit £4.9m).