Aviva 2006 Annual Report Download - page 144

Aviva plc
Annual Report and Accounts 2006 140
Notes to the consolidated financial statements continued
13 – Earnings per share
(a) Basic earnings per share
(i) The profit attributable to ordinary shareholders is:
2006 2005
Operating Adjusting Operating Adjusting
profit items Total profit items Total
£m £m £m £m £m £m
Profit before tax 3,110 (133) 2,977 2,128 400 2,528
Tax attributable to shareholders’ profits (725) 137 (588) (536) (94) (630)
Profit for the year 2,385 4 2,389 1,592 306 1,898
Minority interests (185) 11 (174) (131) –(131)
Preference dividends (17) – (17) (17) – (17)
Coupon payments in respect of direct capital
instrument (net of tax) (37) – (37) (29) – (29)
Profit attributable to ordinary shareholders 2,146 15 2,161 1,415 306 1,721
(ii) Basic earnings per share is calculated as follows:
2006 2005
Net of tax, Net of tax,
minorities, minorities,
preference preference
dividends dividends
Beforetax and DCI Per shareBeforetax and DCI Per share
£m£m p£m£m p
Operating profit attributable to ordinary shareholders 3,110 2,146 86.9 2,128 1,415 60.5
Non-operating items:
– impairment of goodwill (note 15) (94) (94) (3.8) (43) (43) (1.8)
–Amortisation and net impairment of acquired additional
value of in-force business (note 16 & 18) (100) (83) (3.4) (73) (73) (3.1)
– Amortisation and net impairment of intangibles (note 16) (70) (48) (1.9) (45) (42) (1.8)
–Financial services compensation scheme and other levies 6 4 0.2 – – –
– Short-term fluctuation in return on investments backing
general insurance and health business (note 8b) 149 189 7.7 517 430 18.2
– Profit on the disposal of subsidiary and associates (note 3b) 222 235 9.5 153 110 4.7
– Integration and restructuring costs (note 3c) (246) (188) (7.7) (109) (76) (3.2)
Profit attributable to ordinary shareholders 2,977 2,161 87.5 2,528 1,721 73.5
Earnings per share has been calculated based on the operating profit before impairment of goodwill and other non-operating items,
after tax, attributable to ordinary shareholders, as well as on the profit attributable to ordinary shareholders. The directors believe the
former earnings per share figure provides a better indication of operating performance.
(iii) The calculation of basic earnings per shareuses a weighted average of 2,469 million (2005: 2,340 million) ordinary shares in
issue, after deducting shares owned by the employee sharetrusts. The actual number of shares in issue at 31 December 2006 was
2,566 million (2005: 2,396 million).
Financial statements continued