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ANNUAL REPORT 2013 CARPHONE WAREHOUSE GROUP PLC 69
BUSINESS REVIEW GOVERNANCE FINANCIAL STATEMENTS
9 RECONCILIATION OF HEADLINE RESULTS TO STATUTORY RESULTS continued
Profit (loss) before Profit
investment income, before Net profit
interest and taxation taxation for the year
2012 £m £m £m
Headline results 55.4 58.3 57.7
Group exceptional items* (20.6) 792.4 793.3
Share of operating results of discontinued businesses within joint ventures (post-tax)* (9.8) (9.8) (9.8)
Share of joint venture exceptional items (post-tax)* (77.4) (77.4) (77.4)
Share of amortisation of joint venture acquisition intangibles (post-tax)* (1.3) (1.3) (1.3)
Statutory results (53.7) 762.2 762.5
* See note 4 for further details.
Headline information is provided because the directors consider that it provides assistance in understanding the Group’s
underlyingperformance.
10 EARNINGS PER SHARE
2013 2012
Headline earnings (£m) 58.1 57.7
Statutory earnings (£m) 4.2 762.5
Weighted average number of shares (millions):
Average shares in issue 472.8 460.1
Less average holding by Group ESOT (see note 5g) (0.1) (3.5)
For basic earnings per share 472.7 456.6
Dilutive effect of share options and other incentive schemes 6.7 21.1
For diluted earnings per share 479.4 477.7
Basic earnings per share 2013 2012
Headline 12.3p 12.6p
Statutory 0.9p 167.0p
Diluted earnings per share 2013 2012
Headline 12.1p 12.1p
Statutory 0.9p 159.6p
Dilution in the prior year relates to incentive schemes which vested in that year (see notes 5a and 5b).
Dilution in the current year relates to an incentive scheme for senior Best Buy Europe employees, the Group’s obligations for which
areexpected to be met using the Company’s shares. Under the scheme, participants have the opportunity to share in earnings
inexcess of minimum growth targets, against the year ended 31 March 2009.
A minimum value of the pool was agreed in the year ended 31 March 2012, in recognition of the value that had already accrued in the
scheme in relation to Best Buy Mobile, which was disposed of in January 2012. The dilution reflected in the current period relates
tothis minimum value and reflects the Group’s obligations under the scheme during the year.
Further to the CPW Europe Acquisition, the Remuneration Committee has allowed the scheme to vest based on performance achieved
to 31 March 2013. In addition to the Group’s obligations under the scheme in relation to earnings in excess of minimum growth targets
for the years ended March 2010 to March 2013 and the minimum value agreed in relation to Best Buy Mobile, the Group has also agreed
to satisfy Best Buy’s obligations under the scheme. In total, further dilution of up to 9.6m shares has been approved by shareholders
inaddition to the 6.7m shares included within the earnings per share calculations above, although this may be mitigated by the use
ofcash instead of shares.