Annual Report and Accounts 2009

NOTES TO THE ACCOUNTS

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8 EARNINGS PER SHARE

The calculations of earnsaings per share are based on the following profits and numbers of shares:

 

*  ”Other items” relate to the amortisation of acquired intangibles, impairment charges, restructuring costs and gains and losses on derivative financial instruments.

Weighted average number of shares:

* Following the placing and open offer and firm placing of 455,047,973 ordinary shares announced on 18 March 2009 and approved at the Company’s Extraordinary General Meeting on 9 April 2009, in accordance with paragraph 26 of IAS 33 “Earnings per Share” the Group has treated the discount element to the open offer part of the increase in share capital as if it were a bonus issue. The effect of this is to increase the weighted average number of shares for the reported prior period, with a resulting reduction in the reported basic and diluted EPS for the year ended 31 December 2008.

Earnings per share before amortisation of acquired intangibles, impairment charges, restructuring costs and gains and losses on derivative financial instruments is disclosed in order to present the underlying performance of the Group. The following disclosures reconcile these adjustments to the disclosures made on the face of the Consolidated Income Statement:

  1. amortisation of acquired intangibles of £28.6m (2008: £26.4m) is included as part of operating expenses within the column of the Consolidated Income Statement entitled “Other items”;
  2. an impairment charge of £30.0m (2008: £14.2m) is included as part of operating expenses within the column of the Consolidated Income Statement entitled “Other items”;
  3. restructuring costs of £54.8m (2008: £22.2m) are included as part of operating expenses within the column of the Consolidated Income Statement entitled “Other items”;
  4. net losses on derivative financial instruments of £2.5m (2008: losses of £41.4m) are included as finance costs within the column of the Consolidated Income Statement entitled “Other items”; and
  5. the amortisation of acquired intangibles, impairment charges, restructuring costs and gains and losses on derivative financial instruments give rise to tax as disclosed in the table below: