Basic and diluted earnings per share are calculated on the profit for the period after taxation and on the weighted average number of shares in issue during the period as shown below:
| Year ended 31 March 2005 |
2005 | 2004 | ||||||
| Weighted average number of shares m |
Profit after taxation £m |
Weighted average number of shares m |
Profit after taxation £m |
Weighted average number of shares m |
Profit after taxation £m |
|||
|---|---|---|---|---|---|---|---|---|
| 509 | 654 | Earnings per share | Basic | 518 | 615 | 500 | 372 | |
| 519 | 654 | Diluted | 520 | 615 | 519 | 372 | ||
| 509 | 139 | Underlying earnings per share | Basic | 518 | 80 | 500 | 54 | |
| 519 | 139 | Diluted | 520 | 80 | 519 | 54 | ||
Underlying profits are profits adjusted in line with the industry proposed earnings measure and for the year ended 31 March 2005 adjusted for the exceptional charge incurred from the Broadgate refinancing. The industry proposed adjusted earnings measure excludes gains on property or investment revaluations and disposals and related taxation and the capital allowance effects of IAS 12 where applicable.
Underlying earnings per share is calculated by taking the underlying profit before taxation of £102 million (31 March 2005: £181 million; 30 September 2004: £72 million) and adjusting for related taxation of £22 million (31 March 2005: £42 million; 30 September 2004: £18 million). Tax items related to prior periods are excluded. This is a change in methodology from the reported figure in our provisional restated IFRS comparatives published in July 2005 where prior year items were included.
