Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
| |
2006 £m |
2005 £m |
| Net profit attributable to ordinary equity holders of the parent from continuing operations |
139.8 |
107.5 |
| |
2006 Number million |
2005 Number million |
| Weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share |
626.3 |
660.1 |
| Dilutive potential ordinary shares: |
| Employee share options |
15.0 |
9.7 |
| Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution |
641.3 |
669.8 |
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.
The following additional earnings per share figures are calculated based on earnings attributable to ordinary equity holders of the parent before amortisation and impairment of £144.8m (2005: £122.8m). They are included as they provide a better understanding of the underlying trading performance of the Group.
| |
2006 p |
2005 p |
| Basic earnings per share – before amortisation and impairment |
23.10 |
18.60 |
| – after amortisation and impairment |
22.32 |
16.28 |
| Diluted earnings per share – before amortisation and impairment |
22.56 |
18.33 |
| – after amortisation and impairment |
21.80 |
16.05 |