BT 2007 Annual Report Download - page 101

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8. EARNINGS PER SHARE
The basic earnings per share are calculated by dividing the profit attributable to equity shareholders by the weighted average
number of shares in issue after deducting the group’s shares held by employee share ownership trusts and treasury shares.
In calculating the diluted earnings per share, share options outstanding and other potential ordinary shares have been taken into
account where the impact of these is dilutive. Options over 12 million shares (2006: 52 million shares, 2005: 207 million shares)
were excluded from the calculation of the total diluted number of shares as the impact of these is anti-dilutive.
The weighted average number of shares in the years were: 2007
millions of
shares
2006
millions of
shares
2005
millions of
shares
Basic 8,293 8,422 8,524
Dilutive ordinary shares from share options and shares held in trust 186 115 57
Total diluted 8,479 8,537 8,581
Profit attributable to equity shareholders of the parent (£m) 2,850 1,547 1,830
Basic earnings per share (pence) 34.4p 18.4p 21.5p
Diluted earnings per share (pence) 33.6p 18.1p 21.3p
Basic earnings per share before specific items, and the per share impact of individual specific items, is as follows:
2007
pence
per share
2007
£m
2006
pence
per share
2006
£m
2005
pence
per share
2005
£m
Per share impact of specific items:
Net loss on sale of group undertakings – (5) ––––
Profit on sale of non current asset investments –2– – 4.2 358
Property rationalisation costs (0.8) (64) (0.8) (68) (0.7) (59)
Creation of Openreach (0.4) (30) (0.8) (70) – –
Write off of circuit inventory and other working
capital balances (0.8) (65) ––––
Costs associated with settlement of open tax years (0.1) (10) ––––
Interest on settlement of open tax years 1.7 139 ––––
Profit on disposal of associates and joint ventures 0.3 22 –1––
Impairment of assets in joint ventures ––– – (0.3) (25)
Tax credit in respect of settlement of open tax years 11.3 938 ––––
Tax credit on specific items 0.5 41 0.5 41 0.2 16
Basic earnings (loss) per share/profit (loss) for the
year attributable to specific items 11.7 968 (1.1) (96) 3.4 290
Basic earnings per share/profit for the year
attributable to equity shareholders 34.4 2,850 18.4 1,547 21.5 1,830
Adjustment: Basic (earnings) loss per share/(profit)
loss for the financial year attributable to
specific items (11.7) (968) 1.1 96 (3.4) (290)
Basic earnings per share/profit for the year before
specific items 22.7 1,882 19.5 1,643 18.1 1,540
Diluted earnings per share/profit for the year 33.6 2,850 18.1 1,547 21.3 1,830
Adjustment: Diluted (earnings) loss per share/(profit)
loss for the financial year attributable to
specific items (11.4) (968) 1.1 96 (3.4) (290)
Diluted earnings per share/profit for the year
before specific items 22.2 1,882 19.2 1,643 17.9 1,540
Consolidated financial statements Notes to the consolidated financial statements
100 BT Group plc Annual Report & Form 20-F