ICAP Annual Report 2009
Notes to the financial statements
Notes to the financial statements
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12. Earnings per share
The Group is required to disclose basic and diluted EPS on the face of the income statement. The Group continues to calculate adjusted EPS, disclosed below, as it believes that it is the most appropriate measurement since it better reflects the business’s underlying cash earnings.
Basic EPS is calculated by dividing the profit for the year attributable to the equity holders of the parent of £175m (2008 restated – £168m) by the weighted average number of ordinary shares in issue during the year of 634m shares (2008 – 635m).
The weighted average number of ordinary shares in issue excludes the weighted average number of shares held as Treasury Shares of 1m (2008 – 2m) and those owned by employee share trusts relating to employee share schemes on which dividends have been waived, being 14m shares (2008 – 12m).
Diluted EPS takes into account the dilutive effect of share options outstanding under the Company’s employee share schemes.
| Year ended 31 March 2009 | Year ended 31 March 2008 | |||||||
|---|---|---|---|---|---|---|---|---|
| Earnings £m |
Shares millions | Earnings per share pence |
Earnings £m |
Shares millions | Earnings per share pence |
|||
| Basic – as previously reported | 175 | 634 | 27.6 | 156 | 635 | 24.5 | ||
| Prior year adjustment (note 1(a)) | – | – | – | 12 | – | 19 | ||
| Basic – as restated (note 1(a)) | 175 | 634 | 27.6 | 168 | 635 | 26.4 | ||
| Dilutive effect of share options | – | 16 | (0.7) | – | 17 | (0.6) | ||
| Diluted basic | 175 | 650 | 26.9 | 168 | 652 | 25.8 | ||
Adjusted EPS is based on earnings before amortisation and impairment of intangibles arising on consolidation and exceptional items (and their tax effects).
| Year ended 31 March 2009 | Year ended 31 March 2008 | |||||||
|---|---|---|---|---|---|---|---|---|
| Earnings £m |
Shares millions | Earnings per share pence |
Earnings £m |
Shares millions | Earnings per share pence |
|||
| Basic – as restated (note 1(a)) | 175 | 634 | 27.6 | 168 | 635 | 26.4 | ||
| Amortisation and impairment of intangibles arising on consolidation net of tax and minority interest – as restated (note 1(a)) | 41 | – | 6.5 | 24 | – | 3.8 | ||
| Exceptional items net of tax (note 5) | – | – | – | 7 | – | 1.1 | ||
| Adjusted basic | 216 | 634 | 34.1 | 199 | 635 | 31.3 | ||
| Dilutive effect of share options | – | 16 | (0.9) | – | 17 | (0.8) | ||
| Adjusted diluted | 216 | 650 | 33.2 | 199 | 652 | 30.5 | ||
The adjusted basic and adjusted diluted EPS values are unaffected by the prior-year adjustment.
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