7 Earnings per ordinary share
Basic earnings per ordinary share are calculated by dividing the profit attributable to ordinary shareholders of £204m (2003 £116m) by 1,690 million (2003 1,647 million) ordinary shares, being the weighted average number of ordinary shares in issue during the year, excluding own shares held under trust (note 26) which have been treated as if they had been cancelled. Underlying earnings per ordinary share have been calculated as follows:
  2004 2003
  Pence £m Pence £m
Profit attributable to ordinary shareholders 12.07 204 7.04 116
Exclude:        
  Exceptional rationalisation costs — — 3.27 54
  Loss on sale of fixed assets (excluding lease engines and
  aircraft sold by financial services companies)		 0.06 1 0.55 9
  Amortisation of goodwill 2.78 47 2.91 48
  Net profit on sale or termination of businesses (0.53) (9) (0.36) (6)
  Related tax effect 0.12 2 (1.21) (20)
Underlying earnings per ordinary share 14.50 245 12.20 201
 
Diluted earnings per ordinary share are calculated by dividing the profit attributable to ordinary shareholders of £204m (2003 £116m) by 1,752 million (2003 1,671 million) ordinary shares, being 1,690 million (2003 1,647 million) as above adjusted by the bonus element of existing share options of 62 million (2003 24 million).