|
15. Earnings (loss) per share
The
basic earnings (loss) per share are calculated by dividing the profit for the
financial year attributable to shareholders by the weighted average
number of shares in issue after deducting the company’s shares
held by employee share ownership trusts and treasury shares.
In calculating the diluted earnings (loss) per share, share options outstanding and other potential ordinary shares have been taken into account.
The weighted average number of shares in
the years were:
| |
2004
millions
of shares |
|
2003
millions
of shares |
|
2002
millions
of shares |
|
|
|
|
|
|
|
|
| Basic |
8,621 |
|
8,616 |
|
8,307 |
|
| Dilutive ordinary shares from share options outstanding and shares held in trust |
55 |
|
52 |
|
70 |
|
|
|
|
|
|
|
|
| Total diluted |
8,676 |
|
8,668 |
|
8,377 |
|
|
|
|
|
|
|
|
Options over 259 million shares (2003 – 177 million, 2002 – 16 million)
were excluded from the calculation of the total diluted number of shares as they
were anti-dilutive.
The items in the calculation of earnings (loss) per share before goodwill amortisation
and exceptional items in the years were:
|
2004
pence
per share |
|
2003
pence
per share |
|
2002
pence
per share |
|
2004
£
m |
|
2003
£m |
|
2002
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to exceptional items and goodwill amortisation from
continuing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Rectification costs |
(0.3 |
) |
– |
|
– |
|
(30 |
) |
– |
|
– |
|
| Goodwill amortisation |
(0.1 |
) |
(0.3 |
) |
(2.0 |
) |
(12 |
) |
(22 |
) |
(162 |
) |
| Property rationalisation costs |
– |
|
(2.3 |
) |
– |
|
– |
|
(198 |
) |
– |
|
| Goodwill impairment in subsidiary undertakings |
– |
|
– |
|
(23.5 |
) |
– |
|
– |
|
(1,955 |
) |
| Asset impairment in subsidiary undertakings |
– |
|
– |
|
(3.9 |
) |
– |
|
– |
|
(324 |
) |
| Costs relating to the Concert unwind |
– |
|
– |
|
(3.0 |
) |
– |
|
– |
|
(253 |
) |
| Costs relating to the demerger of mmO2 |
– |
|
– |
|
(1.2 |
) |
– |
|
– |
|
(98 |
) |
| BT Retail call centre rationalisation costs |
– |
|
– |
|
(0.8 |
) |
– |
|
– |
|
(68 |
) |
| BT Wholesale bad debts release (costs) |
0.2 |
|
– |
|
(0.9 |
) |
23 |
|
– |
|
(79 |
) |
| Goodwill impairment in associates and joint ventures |
(0.3 |
) |
– |
|
(5.2 |
) |
(26 |
) |
– |
|
(433 |
) |
| Impairment of investment in associates and joint ventures and release (charge) for related exit |
|
|
|
|
|
|
|
|
|
|
|
|
| costs |
– |
|
1.8 |
|
(9.4 |
) |
– |
|
150 |
|
(780 |
) |
| Profit on sale of fixed asset investments |
0.4 |
|
19.8 |
|
2.0 |
|
32 |
|
1,700 |
|
169 |
|
| Loss on sale of group undertakings |
– |
|
(0.1 |
) |
(1.8 |
) |
– |
|
(9 |
) |
(148 |
) |
| Profit on sale of property fixed assets |
– |
|
– |
|
12.8 |
|
– |
|
– |
|
1,062 |
|
| Amounts written off investments |
– |
|
– |
|
(6.4 |
) |
– |
|
– |
|
(535 |
) |
| Finance cost of novating interest rate swaps |
– |
|
(3.4 |
) |
(2.0 |
) |
– |
|
(293 |
) |
(162 |
) |
| Interest receivable on Yell loan notes |
0.4 |
|
– |
|
– |
|
34 |
|
– |
|
– |
|
| Premium on repurchasing bonds |
(1.1 |
) |
– |
|
– |
|
(89 |
) |
– |
|
– |
|
| Tax credit |
0.3 |
|
1.6 |
|
1.7 |
|
29 |
|
139 |
|
143 |
|
| Minority interest |
– |
|
(0.1 |
) |
– |
|
– |
|
(7 |
) |
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (charge) credit attributable to exceptional items and goodwill
amortisation
from continuing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| (0.5 |
) |
17.0 |
|
(43.6 |
) |
(39 |
) |
1,460 |
|
(3,623 |
) |
| Attributable to discontinued activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Costs relating to the demerger of mmO2 |
– |
|
– |
|
(0.1 |
) |
– |
|
– |
|
(11 |
) |
| Profit on sale of group undertakings |
– |
|
– |
|
14.0 |
|
– |
|
– |
|
1,160 |
|
| Profit on sale of fixed asset investments |
– |
|
– |
|
38.6 |
|
– |
|
– |
|
3,208 |
|
| Goodwill amortisation |
– |
|
– |
|
(3.0 |
) |
– |
|
– |
|
(243 |
) |
| Results of discontinued activities before goodwill amortisation and |
|
|
|
|
|
|
|
|
|
|
|
|
| exceptional items after tax and minority interest |
– |
|
– |
|
(2.7 |
) |
– |
|
– |
|
(231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net credit attributable to discontinued activities |
– |
|
– |
|
46.8 |
|
– |
|
– |
|
3,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share/profit for the financial year
after
goodwill amortisation and exceptional items |
|
|
|
|
|
|
|
|
|
|
|
|
| 16.4 |
|
31.2 |
|
12.0 |
|
1,417 |
|
2,686 |
|
995 |
|
| Less: Basic earnings per share/profit for the financial year attributable to
discontinued activities |
|
|
|
|
|
|
|
|
|
|
|
|
| – |
|
– |
|
46.8 |
|
– |
|
– |
|
3,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings (loss) per share/profit (loss) for the financial year
before
discontinued activities |
|
|
|
|
|
|
|
|
|
|
|
|
| 16.4 |
|
31.2 |
|
(34.8 |
) |
1,417 |
|
2,686 |
|
(2,888 |
) |
| Less: Basic (loss) earnings per share/(loss) profit for the financial year
attributable to exceptional items and goodwill amortisation from
continuing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| (0.5 |
) |
17.0 |
|
(43.6 |
) |
(39 |
) |
1,460 |
|
(3,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share/profit for the financial year from continuing
activities
before goodwill amortisation and exceptional items |
|
|
|
|
|
|
|
|
|
|
|
|
| 16.9 |
|
14.2 |
|
8.8 |
|
1,456 |
|
1,226 |
|
735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share before goodwill amortisation and exceptional items is provided
to help readers evaluate the performance of the group.
|
