Notes to the accounts
for the year ended 31 December 2007
9. Earnings per share
Basic earnings per share is calculated by dividing the profit for the financial year attributable to equity holders of the parent of £299.7 million (2006: £221.3 million) by the weighted average number of ordinary shares in issue during the year, less the weighted average number of own shares.
Diluted earnings per share is calculated as for basic earnings per share with a further adjustment to the weighted average number of ordinary shares to reflect the effects of all dilutive potential ordinary shares.
There is no difference between the profit for the financial year attributable to equity holders of the parent used in the basic and diluted earnings per share calculations.
Reconciliation of the figures used in calculating basic and diluted earnings per share:
| 2007 Number |
2006 Number |
|
|---|---|---|
| Weighted average number of ordinary shares used in calculation of basic earnings per share | 285,824,617 | 287,844,376 |
| Effect of dilutive potential ordinary shares – share options | 3,318,475 | 3,251,161 |
| Effect of dilutive potential ordinary shares – contingently issuable shares | 1,104,262 | 944,844 |
| Weighted average number of ordinary shares used in calculation of diluted earnings per share | 290,247,354 | 292,040,381 |
There have been no material transactions involving ordinary shares or potential ordinary shares since the reporting date and before the completion of these financial statements.