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Financial Statements
13. Earnings per share
Earnings per ordinary share have been calculated by dividing the profit for the year attributable to equity shareholders of the parent company by the weighted average number of ordinary shares in issue during the year.
Adjusted earnings per share, excluding exceptional items and remeasurements, are provided to reflect the business performance measures used by the Company as described in Accounting polices (r) Business performance, exceptional items and remeasurements. Further details of exceptional items and remeasurements can be found in note 5 to the accounts.
a) Basic earnings per share
| Earnings 2007 £m |
Earnings per share 2007 pence |
Earnings 2006* £m |
Earnings per share 2006* pence |
Earnings 2005* £m |
Earnings per share 2005* pence |
|
|---|---|---|---|---|---|---|
| Adjusted earnings – continuing operations | 1,296 | 47.7 | 1,291 | 45.5 | 1,276 | 41.4 |
| Exceptional items after taxation | (41) | (1.5) | (61) | (2.2) | (147) | (4.8) |
| Commodity contract remeasurements after taxation | 37 | 1.3 | (38) | (1.3) | (23) | (0.7) |
| Derivative financial instruments remeasurements after taxation | 16 | 0.6 | (11) | (0.4) | - | - |
| Earnings – continuing operations | 1,308 | 48.1 | 1,181 | 41.6 | 1,106 | 35.9 |
| Adjusted earnings – discontinued operations | 104 | 3.8 | 77 | 2.7 | 379 | 12.3 |
| Gain on disposal of gas distribution networks after taxation | - | - | 2,605 | 91.8 | - | - |
| Other exceptional items after taxation | (18) | (0.6) | (15) | (0.5) | (61) | (2.0) |
| Earnings – discontinued operations | 86 | 3.2 | 2,667 | 94.0 | 318 | 10.3 |
| Basic earnings | 1,394 | 51.3 | 3,848 | 135.6 | 1,424 | 46.2 |
| 2007 millions |
2006 millions |
2005 millions |
||||
| Weighted average number of shares – basic | 2,719 | 2,837 | 3,082 |
*Comparatives have been adjusted to reclassify amounts relating to discontinued operations
b) Diluted earnings per share
| Earnings 2007 £m |
Earnings per share 2007 pence |
Earnings 2006* £m |
Earnings per share 2006* pence |
Earnings 2005* £m |
Earnings per share 2005* pence |
|
|---|---|---|---|---|---|---|
| Adjusted diluted earnings – continuing operations | 1,296 | 47.4 | 1,291 | 45.3 | 1,276 | 41.2 |
| Exceptional items after taxation | (41) | (1.5) | (61) | (2.2) | (147) | (4.8) |
| Commodity contract remeasurements after taxation | 37 | 1.3 | (38) | (1.3) | (23) | (0.7) |
| Derivative financial instruments remeasurements after taxation | 16 | 0.6 | (11) | (0.4) | - | - |
| Diluted earnings – continuing operations | 1,308 | 47.8 | 1,181 | 41.4 | 1,106 | 35.7 |
| Adjusted diluted earnings – discontinued operations | 104 | 3.8 | 77 | 2.7 | 379 | 12.3 |
| Gain on disposal of gas distribution networks after taxation | - | - | 2,605 | 91.4 | - | - |
| Other exceptional items after taxation | (18) | (0.7) | (15) | (0.5) | (61) | (2.0) |
| Diluted earnings – discontinued operations | 86 | 3.1 | 2,667 | 93.6 | 318 | 10.3 |
| Diluted earnings | 1,394 | 50.9 | 3,848 | 135.0 | 1,424 | 46.0 |
| 2007 millions |
2006 millions |
2005 millions |
||||
| Weighted average number of shares – diluted | 2,737 | 2,851 | 3,096 |
*Comparatives have been adjusted to reclassify amounts relating to discontinued operations