|
8.
EARNINGS PER SHARE
The basic
earnings per share are calculated by dividing the profit
attributable to equity shareholders by the weighted
average number of shares in issue after deducting the
group’s shares held by employee share ownership
trusts and treasury shares.
In
calculating the diluted earnings per share, share options
outstanding and other potential ordinary shares have
been taken into account where the impact of these is
dilutive. Options over 12 million shares (2006: 52 million
shares, 2005: 207 million shares) were excluded from
the calculation of the total diluted number of shares
as the impact of these is anti-dilutive.
The
weighted average number of shares in the years were:
| |
|
|
2007
millions of
shares |
|
|
2006
millions of
shares |
|
|
2005
millions of
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
8,293 |
|
|
8,422 |
|
|
8,524 |
|
|
Dilutive
ordinary shares from share options and shares
held in trust
|
|
|
186 |
|
|
115 |
|
|
57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
diluted
|
|
|
8,479 |
|
|
8,537 |
|
|
8,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
attributable to equity shareholders of the parent
(£m)
|
|
|
2,850 |
|
|
1,547 |
|
|
1,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share (pence)
|
|
|
34.4 |
p |
|
18.4 |
p |
|
21.5 |
p |
|
Diluted
earnings per share (pence)
|
|
|
33.6 |
p |
|
18.1 |
p |
|
21.3 |
p |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share before specific items, and the per share impact
of individual specific items, is as follows:
| |
|
|
2007
pence
per share |
|
|
2007
£m |
|
|
2006
pence
per share |
|
|
2006
£m |
|
|
2005
pence
per share |
|
|
2005
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
share impact of specific items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss on sale of group undertakings
|
|
|
– |
|
|
(5 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
Profit
on sale of non current asset investments
|
|
|
– |
|
|
2 |
|
|
– |
|
|
– |
|
|
4.2 |
|
|
358 |
|
|
Property
rationalisation costs
|
|
|
(0.8 |
) |
|
(64 |
) |
|
(0.8 |
) |
|
(68 |
) |
|
(0.7 |
) |
|
(59 |
) |
|
Creation
of Openreach
|
|
|
(0.4 |
) |
|
(30 |
) |
|
(0.8 |
) |
|
(70 |
) |
|
– |
|
|
– |
|
|
Write
off of circuit inventory and other working capital
balances
|
|
|
(0.8 |
) |
|
(65 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
Costs
associated with settlement of open tax years
|
|
|
(0.1 |
) |
|
(10 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
Interest
on settlement of open tax years
|
|
|
1.7 |
|
|
139 |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
Profit
on disposal of associates and joint ventures
|
|
|
0.3 |
|
|
22 |
|
|
– |
|
|
1 |
|
|
– |
|
|
– |
|
|
Impairment
of assets in joint ventures
|
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(0.3 |
) |
|
(25 |
) |
|
Tax
credit in respect of settlement of open tax years
|
|
|
11.3 |
|
|
938 |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
Tax
credit on specific items
|
|
|
0.5 |
|
|
41 |
|
|
0.5 |
|
|
41 |
|
|
0.2 |
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share/profit (loss) for the
year attributable to specific items
|
|
|
11.7 |
|
|
968 |
|
|
(1.1 |
) |
|
(96 |
) |
|
3.4 |
|
|
290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share/profit for the year attributable
to equity shareholders
|
|
|
34.4 |
|
|
2,850 |
|
|
18.4 |
|
|
1,547 |
|
|
21.5 |
|
|
1,830 |
|
|
Adjustment:
Basic (earnings) loss per share/(profit) loss
for the financial year attributable to specific
items
|
|
|
(11.7 |
) |
|
(968 |
) |
|
1.1 |
|
|
96 |
|
|
(3.4 |
) |
|
(290 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share/profit for the year before
specific items
|
|
|
22.7 |
|
|
1,882 |
|
|
19.5 |
|
|
1,643 |
|
|
18.1 |
|
|
1,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share/profit for the year
|
|
|
33.6 |
|
|
2,850 |
|
|
18.1 |
|
|
1,547 |
|
|
21.3 |
|
|
1,830 |
|
|
Adjustment:
Diluted (earnings) loss per share/(profit) loss
for the financial year attributable to specific
items
|
|
|
(11.4 |
) |
|
(968 |
) |
|
1.1 |
|
|
96 |
|
|
(3.4 |
) |
|
(290 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share/profit for the year
before specific items
|
|
|
22.2 |
|
|
1,882 |
|
|
19.2 |
|
|
1,643 |
|
|
17.9 |
|
|
1,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
