Financial Statements
2 Performance measures
| 2006 | 2005 | ||||
| Earnings per share (diluted) | Earnings £m | Pence per share | Earnings £m | Pence per share | |
|---|---|---|---|---|---|
| Underlying pre-tax profit – income statement | 228 | 181 | |||
| Tax charge relating to underlying profit | (43) | (42) | |||
| Underlying earnings per share | 185 | 36p | 139 | 27p | |
| Include: debt refinancings (net of tax) | (85) | (126) | |||
| Prior year tax movements | 8 | 45 | |||
| Other items, including property trading profits | (1) | 4 | |||
| EPRA earnings per share | 107 | 21p | 62 | 12p | |
| Profit for the year after taxation | 1,249 | 240p | 654 | 126p | |
The European Public Real Estate Association (EPRA) measure, published in January 2006, gives guidelines for calculating earnings and net asset value performance measures. The EPRA earnings measure excludes gains on property disposals and investment revaluations and their related taxation, intangible asset movements and the capital allowance effects of IAS 12 where applicable, less taxation arising on these items.
Underlying earnings consists of the EPRA earnings measure, with additional company adjustments. Adjustments have been made to reverse the effects of the refinancing charges (note 7) arising in the current (£85m) and prior years (£126m) respectively and prior year tax items.
The weighted average number of shares in issue for the year was: basic: 519m (31 March 2005: 509m); diluted: 521m (31 March 2005: 519m). Basic earnings per share for the year were 241p (2005: 129p).
| Net asset value (NAV) | 2006 £m |
2005 £m |
|---|---|---|
| Balance sheet net assets | 6,016 | 4,783 |
| Add | ||
| Deferred tax arising on revaluation movements, capital allowances and derivatives | 1,636 | 1,013 |
| Mark to market on interest rate swaps | 33 | 24 |
| Surplus arising on trading properties | 74 | 63 |
| Dilution effect – options | 43 | 30 |
| EPRA net assets | 7,802 | 5,913 |
| EPRA NAV per share | 1486p | 1128p |
The EPRA NAV per share includes the external valuation surplus on trading properties but excludes the fair value adjustments for debt and related derivatives and deferred taxation on revaluations and capital allowances, calculated on a fully diluted basis. The prior year deferred tax is net of the goodwill of £73m, arising from recognising deferred tax on the acquisition of the Spirit and Debenhams portfolios.
At 31 March 2006, the number of shares in issue was: basic: 519m (2005: 518m); diluted: 525m (2005: 524m).
Total return per share (excluding refinancing charges) of 34.6% represents the growth per share in EPRA NAV (358p) plus dividends paid of 16p (see note 21), excluding current year refinancing charges of 16p. Total return per share for the year ended 31 March 2005 was 18.8%.