Section image
Notes 6-10
- 6. Segmental analysis
- 7. Taxation
- 8. Ordinary dividends
- 9. Earnings per share
- 10. Analysis of cash flows
9. Earnings per share
Basic EPS
The calculation of basic reported and headline EPS is as follows:
| Six months ended 30 June 2011 | Six months ended 30 June 2010 | +/(-)% | Constant Currency +/(-)% | Year ended 31 December 2010 |
|
|---|---|---|---|---|---|
| Reported earnings1 (£m) | 230.7 | 150.8 | 586.0 | ||
| Headline earnings (£m) (note 19) | 293.0 | 239.2 | 730.8 | ||
| Average shares used in Basic EPS calculation (m) | 1,244.2 | 1,222.9 | 1,233.1 | ||
| Reported EPS | 18.5p | 12.3p | 50.4 | 57.8 | 47.5p |
| Headline EPS | 23.5p | 19.6p | 19.9 | 23.8 | 59.3p |
Notes
- 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 2011 | Six months ended 30 June 2010 | +/(-)% | Constant Currency +/(-)% | Year ended 31 December 2010 |
|
|---|---|---|---|---|---|
| Diluted reported earnings (£m) | 243.6 | 150.8 | 614.3 | ||
| Diluted headline earnings (£m) | 305.9 | 239.2 | 759.0 | ||
| Shares used in diluted EPS calculation (m) | 1,344.0 | 1,254.1 | 1,339.0 | ||
| Diluted reported EPS | 18.1p | 12.0p | 50.8 | 58.4 | 45.9p |
| Diluted headline EPS | 22.8p | 19.1p | 19.4 | 22.8 | 56.7p |
Diluted EPS has been calculated based on the reported and headline earnings amounts above. For the six months ended 30 June 2011, the £450 million convertible bonds were dilutive and earnings were consequently increased by £12.9 million for the purpose of the calculation of diluted earnings. For the six months ended 30 June 2010, 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 2011 m | Six months ended 30 June 2010 m | Year ended 31 December 2010 m |
|
|---|---|---|---|
| Average shares used in basic EPS calculation | 1,244.2 | 1,222.9 | 1,233.1 |
| Dilutive share options outstanding | 6.4 | 6.8 | 6.7 |
| Other potentially issuable shares | 16.9 | 24.4 | 22.7 |
| £450 million 5.75% convertible bonds | 76.5 | – | 76.5 |
| Shares used in diluted EPS calculation | 1,344.0 | 1,254.1 | 1,339.0 |
At 30 June 2011 there were 1,266,516,940 ordinary shares in issue.