99
Annual Report and Accounts 2014
2.3 Earnings per ordinary share
Earnings per share (‘EPS’) is the amount of post-tax profit attributable to each share (excluding those held in the Employee Benefit Trust or by the Company).
Basic EPS measures are calculated as the Group profit for the year attributable to equity shareholders divided by the weighted average number of shares in
issue during the year. Diluted EPS takes into account the dilutive effect of all outstanding share options priced below the market price, in arriving at the number
of shares used in its calculation.
Both of these measures are also presented on an adjusted basis, to remove the effects of exceptional items, being items of both income and expense which
are sufficiently large, volatile or one-off in nature to assist the reader of the financial statements to get a better understanding of the underlying performance of
the Group. The note below demonstrates how this calculation has been performed.
2014
2013
Key
million
million
Weighted average number of shares for the purpose of basic earnings per share
A
274.6
315.5
Dilutive effect of employee share options
2.4
4.0
Weighted average number of shares for the purpose of diluted earnings per share
B
277.0
319.5
Key
£m
£m
Profit for the year
671.3
227.0
Non-controlling interests
(2.8)
(3.1)
Profit for the year attributable to owners of the parent
C
668.5
223.9
Profits from discontinued operations, net of tax
(478.5)
(33.4)
Continuing profit for the year attributable to owners of the parent
D
190.0
190.5
Total exceptional charges included in profit before tax
32.4
48.4
Total exceptional credits included in taxation
(8.3)
(9.8)
Earnings for adjusted EPS
E
214.1
229.1
Key
2014
2013
EPS measures
Basic EPS
C/A
243.4p
71.0p
Diluted EPS
C/B
241.3p
70.1p
Basic continuing EPS
D/A
69.2p
60.4p
Diluted continuing EPS
D/B
68.6p
59.6p
Adjusted EPS measures
Adjusted basic continuing EPS
E/A
78.0p
72.6p
Adjusted diluted continuing EPS
E/B
77.3p
71.7p
The reduction in the weighted average number of shares is primarily as a result of the 7 for 8 share consolidation on 17 February 2014. For more detail refer
to section 4.6.1 on page 129.
Discontinued earnings per share
Basic discontinued earnings per share were 174.2p (2013: 10.6p). Diluted discontinued earnings per share were 172.7p (2013: 10.5p).
