Holiday Inn 2006 Annual Report Download - page 64

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Notes to the Group financial statements
2006 2005
pence per pence per 2006 2005
8 Dividends paid and proposed share share £m £m
Paid during the year:
Final (declared in previous year) 10.7 10.0 46 61
Interim 5.1 4.6 18 20
Special interim 118.0 –497 –
133.8 14.6 561 81
Proposed for approval at the Annual General Meeting (not recognised as a liability at 31 December):
Final 13.3 10.7 47 46
The proposed final dividend is payable on the shares in issue at 23 March 2007.
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.
On 1 June 2006, shareholders approved a share capital consolidation on the basis of seven new ordinary shares for every eight existing
ordinary shares, together with a special dividend of 118p per existing ordinary share. The overall effect of the transaction was that of
a share repurchase at fair value, therefore no adjustment has been made to comparative data.
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.
2006 2005
Continuing Continuing
Basic earnings per share operations Total operations Total
Profit available for equity holders (£m) 267 405 103 496
Basic weighted average number of ordinary shares (millions) 389 389 521 521
Basic earnings per share (pence) 68.6 104.1 19.8 95.2
Diluted earnings per share
Profit available for equity holders (£m) 267 405 103 496
Diluted weighted average number of ordinary shares (millions) (see below) 399 399 533 533
Diluted earnings per share (pence) 66.9 101.5 19.3 93.1
2006 2005
millions millions
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares 389 521
Dilutive potential ordinary shares – employee share options 10 12
399 533
2006 2005
Continuing Continuing
operations Total operations Total
Adjusted earnings per share £m £m £m £m
Profit available for equity holders 267 405 103 496
Less adjusting items (note 5):
Other operating income and expenses (27) (27) 22 22
Tax on other operating income and expenses 66––
Special tax credit (100) (100) (8) (8)
Gain on disposal of assets, net of tax – (117) – (311)
Adjusted earnings 146 167 117 199
Basic weighted average number of ordinary shares (millions) 389 389 521 521
Adjusted earnings per share (pence) 37.5 42.9 22.5 38.2
Diluted weighted average number of ordinary shares (millions) 399 399 533 533
Adjusted diluted earnings per share (pence) 36.6 41.8 21.9 37.3
62 IHG Annual report and financial statements 2006