Note 12
Earnings Per Ordinary Share
The calculation of basic earnings per share is based on profit after tax of £9.8 million (2004: £7.7 million) and on the weighted average number of shares in issue during the year of 41,084,054 (2004: 41,062,429).
Adjusted basic earnings per share is presented as the directors consider that this gives a useful additional indication of the ongoing earnings performance of the Group.
This calculation is based on profit after tax before significant items from continuing operations. In 2005 this profit was £10.7 million (2004: £9.1 million).
Reconciliation of earnings and its effect on basic earnings per share and adjusted basic earnings per share
| |
Earnings per share |
|
2005
£m |
Profit
2004
£m |
2005
pence |
2004
pence |
| Profit for the financial year |
9.8 |
7.7 |
23.9 |
18.8 |
| Less: discontinued operation |
(0.4) |
- |
(1.0) |
- |
| Profit from continuing operations |
9.4 |
7.7 |
22.9 |
18.8 |
| Add back: significant items |
1.3 |
1.4 |
3.1 |
3.4 |
| Earnings before significant items from continuing operations |
10.7 |
9.1 |
26.0 |
22.2 |
The calculation of diluted earnings per share of 23.7p (2004: 18.7p) is based on profit after tax of £9.8 million (2004: £7.7 million) and on 41,352,795 (2004: 41,236,750) ordinary shares, calculated as follows:
Reconciliation of shares and its effect on basic earnings per share and diluted earnings per share
| |
Number of shares |
Earnings per share |
|
2005 |
2004 |
2005
pence |
2004
pence |
| Basic weighted average number of shares |
41,084,054 |
41,062,429 |
23.9 |
18.8 |
| Dilutive potential ordinary shares: |
|
|
|
|
| Employee share options |
179,712 |
143,894 |
(0.1) |
(0.1) |
| Deferred bonus plan |
89,029 |
30,427 |
(0.1) |
- |
| Diluted weighted average number of shares |
41,352,795 |
41,236,750 |
23.7 |
18.7 |
Information correct at 02/05/2006