Holiday Inn 2005 Annual Report Download - page 52

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2005 2004
pence per pence per 2005 2004
8 DIVIDENDS PAID AND PROPOSED share share £m £m
Paid during the year:
Final (declared in previous year) 10.00 9.45 61 70
Interim 4.60 4.30 20 29
Special interim –72.00 –501
14.60 85.75 81 600
Proposed for approval at the Annual General Meeting (not recognised as a liability at 31 December):
Final 10.70 10.00 46 62
The proposed final dividend is payable on the shares in issue at 31 March 2006.
9 EARNINGS PER ORDINARY SHARE
Basic earnings per ordinary share is calculated by dividing the profit for the year available for IHG equity holders by the weighted average
number of ordinary shares, excluding investment in own shares, in issue during the year.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the
weighted average number of dilutive ordinary share options outstanding during the year. The resulting weighted average number of dilutive
ordinary shares is 533 million (2004 718 million).
Shareholder approval was given on 1 June 2005 to recommended proposals for the return of approximately £1bn to shareholders by way
of a capital reorganisation (by means of a Scheme of Arrangement under Section 425 of the Companies Act 1985). Under the arrangement,
shareholders received 11 new ordinary shares and £24.75 cash in exchange for every 15 existing ordinary shares held on 24 June 2005.
The overall effect of the transaction was that of a share repurchase at fair value, therefore no adjustment has been made to comparative data.
2005 2004
Continuing Continuing
operations Total operations Total
Basic earnings per share note £m £m £m £m
Profit available for equity holders 116 496 246 383
Basic weighted average number of ordinary shares (millions) 521 521 710 710
Basic earnings per share (pence) 22.3 95.2 34.6 53.9
Adjusted earnings per share
Profit available for equity holders 116 496 246 383
Less adjusting items:
Other operating income and expenses 522 22 49 49
Financing 5––11 11
Tax 5(8) (8) (183) (183)
Gain on disposal of assets, net of tax – (311) – (19)
Adjusted earnings 130 199 123 241
Basic weighted average number of ordinary shares (millions) 521 521 710 710
Adjusted earnings per share (pence) 24.9 38.2 17.3 33.9
Diluted earnings per share
Profit available for equity holders 116 496 246 383
Diluted weighted average number of ordinary shares (millions) (see below) 533 533 718 718
Diluted earnings per share (pence) 21.8 93.1 34.3 53.3
2005 2004
millions millions
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares 521 710
Dilutive potential ordinary shares – employee share options 12 8
533 718
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by special items, to give a more meaningful
comparison of the Group’s performance.
notes to the financial statements
50 InterContinental Hotels Group 2005