Barclays 2011 Annual Report Download - page 219

12 Earnings per share
2011
£m
2010
£m
2009
£m
Profit attributable to equity holders of parent from continuing operations 3,007 3,564 2,628
Dilutive impact of convertible options – (10) (17)
Profit attributable to equity holders of parent from continuing operations including dilutive impact of
convertible options
3,007 3,554 2,611
Profit attributable to equity holders of the parent from discontinued operations – – 6,765
2011
million
2010
million
2009
million
Basic weighted average number of shares in issue 11,988 11,719 10,890
Number of potential ordinary shares 538 733 594
Diluted weighted average number of shares 12,526 12,452 11,484
Basic earnings per share Diluted earnings per share
2011
p
2010
p
2009
p
2011
p
2010
p
2009
p
Earnings per ordinary share from continuing operations 25.1 30.4 24.1 24.0 28.5 22.7
Earnings per ordinary share from discontinued operations –– 62.1 –– 58.9
Earnings per ordinary share 25.1 30.4 86.2 24.0 28.5 81.6
The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the number of basic weighted average
number of shares excluding treasury shares held in employee benefit trusts or held for trading. The basic weighted average number of shares in issue
for 2011 reflects the full year impact of the exercise of 758 million warrants in 2010. No warrants were exercised in 2011.
When calculating the diluted earnings per share, the weighted average number of shares in issue is adjusted for the effects of all dilutive potential
ordinary shares held in respect of Barclays PLC, totalling 538 million (2010: 733 million) shares. In addition, the profit attributable to equity holders of
the parent is adjusted for the dilutive impact of the potential conversion of outstanding options held in respect of Absa Group Limited. The decrease in
the number of potential ordinary shares is primarily driven by the impact of the decrease in the average share price to £2.34 (2010: £3.06) on both the
379 million (2010: 379 million) unexercised warrants and the 867 million (2010: 795 million) outstanding options granted under employee share
schemes, which have strike prices ranging from £1.41 to £5.49 with an average of £3.71 (2010: £4.01).
Of the total number of employee share options and share awards at 31 December 2011, 248 million were anti-dilutive (2010: 59 million).
13 Dividends on ordinary shares
The Directors have approved a final dividend in respect of 2011 of 3.0p per ordinary share of 25p each, amounting to £366m (2010: £298m), which will
be paid on 16 March 2012. The financial statements for the year ended 31 December 2011 do not reflect this dividend, which will be accounted for in
shareholders’ equity as an appropriation of retained profits in the year ending 31 December 2012. The 2011 financial statements include the 2011
interim dividends of £362m (2010: £355m) and final dividend declared in relation to 2010 of £298m (2009: £176m).
14 Discontinued operations
On 1 December 2009 the Group completed the sale of BGI to BlackRock, Inc. recognising a profit on disposal before tax of £6,331m. The tax charge on
the profit on disposal was £43m reflecting the application of UK substantial shareholdings relief in accordance with UK tax law.
The consideration at completion was $15.2bn (£9.5bn), including 37.567 million new BlackRock, Inc. shares. Under the terms of the transaction
Bob Diamond and John Varley were appointed to the BlackRock, Inc. Board, which comprises 17 directors. As at 31 December 2011 the Group held
an economic interest of 19.7% of BlackRock, Inc. and 2.2% of the voting rights. Barclays may not acquire additional voting rights and must vote in
accordance with the recommendations of the BlackRock, Inc. Board of Directors. The Group is not deemed to exercise significant influence and the
investment has been accounted for as an available for sale equity investment.
The Group has provided BlackRock, Inc. with customary warranties and indemnities in connection with the sale. Barclays will also continue to indemnify
securities lending arrangements until 30 November 2012 (included within contingent liabilities in Note 30) and provide support to certain BGI cash
funds until December 2013 in the form of credit derivatives (included within derivative liabilities in Note 17) and financial guarantees (included within
provisions in Note 29). In addition, Barclays, BlackRock, Inc. and their respective affiliates also enter into agreements and transactions with one another
in the ordinary course of their respective businesses and on an arm’s length commercial basis, subject to applicable regulation and agreements with
relevant regulators.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 217
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