Notes 6-10

9. Earnings per share

Basic EPS

The calculation of basic Reported and Headline EPS is as follows:


 
 
 
Six
months
ended
30 June
2009
Six
months
ended
30 June
2008

 
 
 
+/(-)%

 
Constant
Currency
+/(-)%
Year
ended
31
December
2008
Reported earnings1 (£m) 108.4 208.2     439.1
Headline earnings (£m)
(note 19)
159.8 255.2     648.3
Average shares used in
Basic EPS calculation (m)
1,220.9 1,144.0     1,143.4
Reported EPS 8.9p 18.2p (51.1) (60.5) 38.4p
Headline EPS 13.1p 22.3p (41.3) (51.6) 56.7p
1
Reported earnings is equivalent to profit for the period attributable to equity holders of the parent.

 

Diluted EPS

The calculation of diluted Reported and Headline EPS is set out below:


 
 
 
Six
months
ended
30 June
2009
Six
months
ended
30 June
2008

 
 
 
+/(-)%

 
Constant
Currency
+/(-)%
Year
ended
31
December
2008
Diluted Reported
earnings (£m)
108.4 208.7     439.9
Diluted Headline
earnings (£m)
159.8 255.7     649.1
Shares used in diluted
EPS calculation (m)
1,235.6 1,174.4     1,169.6
Diluted Reported EPS 8.8p 17.8p (50.6) (60.1) 37.6p
Diluted Headline EPS 12.9p 21.8p (40.8) (51.0) 55.5p

Diluted EPS has been calculated based on the Reported and Headline Earnings amounts above. On 19 May 2009 the Group issued £450 million 5.75% convertible bonds due in 2014. For the six months ended 30 June 2009, these convertible bonds were accretive to earnings and therefore excluded from the calculation of diluted earnings.

A reconciliation between the shares used in calculating Basic and Diluted EPS is as follows:


 
 
 
 
Six months
ended
30 June
2009
£m
Six months
ended
30 June
2008
£m

Year ended
31 December
2008
£m
Average shares used in
Basic EPS calculation
1,220.9 1,144.0 1,143.4
Dilutive share options outstanding 1.6 7.0 2.9
Other potentially issuable shares 13.1 14.5 16.0
$150 million Grey convertible bond 8.9 7.3
Shares used in Diluted
EPS calculation
1,235.6 1,174.4 1,169.6

At 30 June 2009 there were 1,255,405,058 ordinary shares in issue.