Preliminary results for the year ended 29 January 2011
Notes to the consolidated financial statements
7. Earnings per share
| 2010/11 | 2009/10 | |||||
|---|---|---|---|---|---|---|
| Earnings £ millions |
Weighted average number of shares millions | Earnings per share pence | Earnings £ millions |
Weighted average number of shares millions | Earnings per share pence | |
| Basic earnings per share | 494 | 2,349 | 21.0 | 388 | 2,347 | 16.5 |
| Dilutive share options | 38 | (0.3) | 22 | (0.1) | ||
| Diluted earnings per share | 494 | 2,387 | 20.7 | 388 | 2,369 | 16.4 |
| Basic earnings per share | 494 | 2,349 | 21.0 | 388 | 2,347 | 16.5 |
| Exceptional items | 6 | 0.3 | (17) | (0.7) | ||
| Tax on exceptional and prior year items | (14) | (0.6) | 14 | 0.7 | ||
| Financing fair value remeasurements | (7) | (0.3) | (2) | (0.1) | ||
| Tax on financing fair value remeasurements | 2 | 0.1 | 1 | – | ||
| Adjusted basic earnings per share | 481 | 2,349 | 20.5 | 384 | 2,347 | 16.4 |
| Diluted earnings per share | 494 | 2,387 | 20.7 | 388 | 2,369 | 16.4 |
| Exceptional items | 6 | 0.3 | (17) | (0.7) | ||
| Tax on exceptional and prior year items | (14) | (0.6) | 14 | 0.7 | ||
| Financing fair value remeasurements | (7) | (0.3) | (2) | (0.1) | ||
| Tax on financing fair value remeasurements | 2 | 0.1 | 1 | – | ||
| Adjusted diluted earnings per share | 481 | 2,387 | 20.2 | 384 | 2,369 | 16.3 |
Basic earnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Company by the weighted average number of shares in issue during the year, excluding those held in the Employee Share Ownership Plan Trust (‘ESOP’) which for the purpose of this calculation are treated as cancelled.
For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential ordinary shares. These represent share options granted to employees where both the exercise price is less than the average market price of the Company's shares during the year and any related performance conditions have been met.
