Note 11: Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares during the year, determined in accordance with the provisions of FRS 22 “Earnings per share”.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all the potentially dilutive ordinary shares. The Group has only one category of potentially dilutive shares, being share options granted where the exercise price is less than the average price of the Company’s ordinary shares during the year.
Adjusted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders before the
post-tax effects of adjusting items (as defined in note 7), by the weighted average number of ordinary shares during
the year. Diluted adjusted earnings per share is calculated by dividing the adjusted earnings attributable to ordinary
shareholders by the dilutive number of ordinary shares during the year.
|
2007
£'000 |
|
2006
(restated)*
£'000 |
|
|
| Basic and diluted earnings attributable to ordinary shareholders |
2,486 |
|
1,330 |
|
| Reorganisation costs after taxation |
207 |
|
470 |
|
| Amortisation of goodwill after taxation |
766 |
|
670 |
|
| Unwinding of discount on deferred consideration after taxation |
112 |
|
- |
|
| Profit on sale of division after taxation |
(106 |
) |
- |
|
|
| Adjusted and diluted adjusted earnings attributable to ordinary shareholders |
3,465 |
|
2,470 |
|
|
|
Number |
|
Number
(restated)1 |
|
|
| Weighted average number of ordinary shares |
48,954,264 |
|
46,457,657 |
|
| Dilutive shares |
819,624 |
|
1,544,997 |
|
|
| Diluted weighted average number of ordinary shares |
49,773,888 |
|
48,002,654 |
|
|
| Basic earnings per share |
5.08p |
|
2.86p |
|
| Diluted earnings per share |
4.99p |
|
2.77p |
|
| Adjusted earnings per share |
7.08p |
|
5.32p |
|
| Diluted adjusted earnings per share |
6.96p |
|
5.15p |
|
|
Adjusted and diluted adjusted earnings per share have been presented to provide additional useful information.
The adjusted earnings per share is the performance measure used for the vesting of employee share options and
performance shares.
1 In accordance with FRS 22 - “Earnings per share”, the 2006 dilutive shares have been restated to exclude
conditional and performance share awards
which have not vested by the period end.
*See note 1. Foreign currencies