• Independent auditor’s report
• Consolidated income statement
• Consolidated statement of comprehensive income
• Consolidated and Parent Company balance sheets
• Consolidated statement of changes in equity
• Parent Company statement of changes in equity
• Consolidated and Parent Company statement of cash flows
• Accounting policies
• Notes to the financial statements
• Group financial history
• Shareholders’ information

Notes to the financial statements

8 Earnings per share

Basic earnings/losses per share (‘EPS’) on profit/(loss) for the year from continuing operations is calculated by dividing profit/(loss) from continuing operations by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by dividing the profit from continuing operations by the weighted average number of ordinary shares outstanding during the year plus the difference between the number of ordinary shares issued and the number of ordinary shares that would have been issued at the average market price of ordinary shares during the year. Note that in the circumstances where there is a basic loss per share, share options are anti-dilutive and therefore are not included in the calculation of diluted losses per share.

The shares held by the Dairy Crest Employees’ Share Ownership Plan Trust (‘ESOP’) are excluded from the weighted average number of shares in issue used in the calculation of earnings and diluted earnings per share.

To show earnings per share on a consistent basis, which in the Directors’ opinion reflects the ongoing performance of the business more appropriately, adjusted earnings per share has been calculated. The computation for basic and diluted earnings per share (including adjusted earnings per share) is as follows:

		Year ended 31 March 2014						Year ended 31 March 2013 (Restated)
		Earnings £m		Weighted average no of shares million		Per share amount pence		Earnings £m		Weighted average no of shares million		Per share amount pence
Basic EPS from continuing operations		48.8		136.5		35.8		(7.9)		134.7		(5.9)
Effect of dilutive securities:
Share options		–		1.6		(0.5)		–		–		–
Diluted EPS from continuing operations		48.8		138.1		35.3		(7.9)		134.7		(5.9)
Adjusted EPS from continuing operations
Profit/(loss) from continuing operations		48.8		136.5		35.8		(7.9)		134.7		(5.9)
Exceptional items net of tax		6.4		–		4.7		44.5		–		33.0
Amortisation of acquired intangible assets (net of tax)		0.3		–		0.2		0.3		–		0.2
Pension interest expense (net of tax)		0.2		–		0.1		2.7		–		2.1
Adjusted basic EPS from continuing operations		55.7		136.5		40.8		39.6		134.7		29.4
Effect of dilutive securities:
Share options		–		1.6		(0.5)		–		–		–
Adjusted diluted EPS from continuing operations		55.7		138.1		40.3		39.6		134.7		29.4
Basic EPS from discontinued operations		1.4		136.5		1.0		54.5		134.7		40.5
Effect of dilutive securities:
Share options		–		1.6		–		–		–		–
Diluted EPS from discontinued operations		1.4		138.1		1.0		54.5		134.7		40.5
Basic EPS on profit/(loss) for the year		50.2		136.5		36.8		46.6		134.7		34.6
Effect of dilutive securities:
Share options		–		1.6		(0.4)		–		–		–
Diluted EPS on profit/(loss) for the year		50.2		138.1		36.4		46.6		134.7		34.6

There have been no transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of signing of these financial statements.

The prior period comparatives have been restated to reflect the amendment to IAS 19R: Employee Benefits (see Note 20). This resulted in a basic loss per share on continuing operations and therefore no dilution has been assumed across any EPS measures. This is in line with IAS 33 guidelines.