Annual Report 30 June 2007 - One Horizon Group

8. Earnings per share
Basic earnings per share are based on the Group profit attributable to members of the Parent Company of $2,959,000
(2006: $1,981,000) and on 56,220,132 (2006: 51,132,380) being the weighted average number of shares in issue during
the year.
Diluted earnings per share are based on the profit attributable to members of the Parent Company including options held
adjusted for the interest payable to the convertible bondholders less the relevant tax relief thereon being $3,424,982
(2006: $2,269,000) and on 66,854,101 (2006: 58,909,761) being the diluted weighted average number of shares in issue
during the year.
9. Taxation on ordinary activities
(a) Analysis of charge in the period
30 June 2007 30 June 2006
$000’s $000’s
Current tax:
UK taxation
In respect of the period:
UK Corporation tax based on the results for the year 33 329
Foreign tax
Current tax on income for the year 761 580
Total current tax (note 9(b)) 794 909
Deferred tax:
Origination and reversal of timing differences (note 21) (–) (19)
Tax on profit on ordinary activities 794 890
(b) Factors affecting current tax charge
The tax assessed on the profit on ordinary activities for the period is lower than the standard rate of corporation tax in the
UK of 30% (2006: 30%).
30 June 2007 30 June 2006
$000’s $000’s
Profit on ordinary activities before taxation 3,679 2,802
Profit on ordinary activities at 30% 1,103 841
Expenses not deductible for tax purposes 2 80
Capital allowances in period less than depreciation 1 20
Tax under provided in previous years – –
Lower taxes on overseas earnings (215) (32)
Losses arising in year not relieved against current tax (97) –
Total current tax (note 9(a)) 794 909
21