6 Earnings per ordinary share

Basic earnings per ordinary share of 33.67p (2006 57.32p) are calculated by dividing the profit attributable to ordinary shareholders of £606m (2006 £998m) by 1,800 million (2006 1,741 million) ordinary shares, being the average number of ordinary shares in issue during the year, excluding own shares held under trust, which have been treated as if they had been cancelled.

Diluted earnings per ordinary share of 32.97p (2006 55.14p) are calculated by dividing the profit attributable to ordinary shareholders of £606m (2006 £998m) by 1,838 million (2006 1,810 million) ordinary shares, being 1,800 million (2006 1,741 million) as above, adjusted by the bonus element of share options of 38million (2006 69 million).

Underlying1 earnings per ordinary share (EPS) has been calculated as follows:
  2007
 2006
 
Pence		 £m
Pence		 £m
EPS/Profit attributable to equity holders of the parent 33.67 606 57.32 998
Release of transition hedging reserve (8.28) (149) (16.60) (289)
Realised gains on settled derivative contracts 23.33 420 21.25 370
Net unrealised fair value changes to derivative contracts (13.94) (251) (41.93) (730)
Effect of currency on contract accounting (4.22) (76) 0.06 1
Revaluation of trading assets and liabilities 0.56 10 0.23 4
Financial RRSPs – foreign exchange differences and changes in forecast payments 0.72 13 (2.24) (39)
Net post-retirement scheme financing (1.67) (30) (0.17) (3)
Post-retirement schemes – past service costs (note 18) 7.22 130 — —
Related tax effect (1.39) (25) 11.89 207
Change in rates of corporation tax (note 5) (1.94) (35) — —
Underlying earnings per ordinary share/Underlying profit attributable to equity holders of the parent 34.06 613 29.81 519
1See note 2.

Back to top