View - Atkins

88 Financial Statements
Notes to the Financial Statements
Continued
12. Earnings per share (EPS)
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of
shares in issue during the year excluding shares held by the Employee Benefit Trusts (EBTs) which have not unconditionally vested in the
employees and shares in treasury.
Diluted earnings per share is the basic earnings per share after allowing for the dilutive effect of the conversion into ordinary shares of
the number of options outstanding during the year. The options relate to discretionary employee share plans.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below:
Group
2008 2007
number number
(‘000) (‘000)
Number of shares
Weighted average number of shares used in basic, diluted (2007 only) and normalised basic EPS 101,105 100,901
Effect of dilutive securities – Share options 1,735 1,204
Weighted average number of shares used in diluted (2008 only) and normalised diluted EPS 102,840 102,105
In 2007 the effect of share options was anti-dilutive.
£m £m
Earnings – continuing and discontinued operations
Profit/(loss) for the year attributable to equity shareholders 100.0 (57.3)
Earnings – continuing operations
Profit for the year attributable to equity shareholders 68.6 54.9
Exceptional items (note 9) – 2.8
Normalised earnings 68.6 57.7
pence pence
From continuing and discontinued operations
Basic earnings/(loss) per share (post-exceptional) 98.9 (56.8)
Diluted earnings/(loss) per share (post-exceptional) 97.2 (56.8)
From continuing operations
Basic earnings/(loss) per share (post-exceptional) 67.9 54.4
Diluted earnings/(loss) per share (post-exceptional) 66.7 53.8
Normalised basic earnings per share (pre-exceptional) 67.9 57.2
Normalised diluted earnings per share (pre-exceptional) 66.7 56.5
Normalised diluted EPS (before exceptional items) is considered to be a more representative measure of underlying trading.
13. Parent company income statement
The Company has not presented its own income statement as permitted by Section 230 of the Companies Act 1985. The profit for the
year attributable to equity shareholders was £68.7m (2007: £4.9m), which included £10.9m dividend income from subsidiary companies.
WS Atkins plc Annual Report 2008