Holiday Inn 2008 Annual Report Download - page 72

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70 IHG Annual Report and Financial Statements 2008
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.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more
meaningful comparison of the Group’s performance.
2008 2007
Continuing Continuing
operations Total operations Total
Basic earnings per ordinary share
Profit available for equity holders ($m) 248 262 420 463
Basic weighted average number of ordinary shares (millions) 287 287 320 320
Basic earnings per ordinary share (cents) 86.4 91.3 131.3 144.7
Diluted earnings per ordinary share
Profit available for equity holders ($m) 248 262 420 463
Diluted weighted average number of ordinary shares (millions) 296 296 329 329
Diluted earnings per ordinary share (cents) 83.8 88.5 127.7 140.7
2008 2007
millions millions
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares 287 320
Dilutive potential ordinary shares – employee share options 99
296 329
2008 2007
Continuing Continuing
operations Total operations Total
Adjusted earnings per ordinary share
Profit available for equity holders ($m) 248 262 420 463
Adjusting items (note 5):
Exceptional operating items ($m) 132 132 (60) (60)
Tax on exceptional operating items ($m) (17) (17) ––
Exceptional tax credit ($m) (25) (25) (60) (60)
Gain on disposal of assets, net of tax ($m) –(5)– (32)
Adjusted earnings ($m) 338 347 300 311
Basic weighted average number of ordinary shares (millions) 287 287 320 320
Adjusted earnings per ordinary share (cents) 117.8 120.9 93.8 97.2
Adjusted earnings ($m) 338 347 300 311
Diluted weighted average number of ordinary shares (millions) 296 296 329 329
Adjusted diluted earnings per ordinary share (cents) 114.2 117.2 91.2 94.5
Notes to the Group financial statements continued