: notes to the accounts :
9. Earnings per share
In order to show results from operating activities on a comparable basis two adjusted earnings per equity share are presented. First, an adjusted earnings per share is presented which excludes profits or losses on the sale of fixed assets and investments, businesses and associates (see notes 4 and 5), Year 2000 compliance costs and integration costs in respect of the acquisition of Simon & Schuster (see note 2). Goodwill amortisation has also been excluded from the adjusted earnings calculation following the prospective implementation of FRS10 ‘Goodwill and Intangible Assets’ in 1998. Due to a significant level of expenditure in 1999 on new internet enterprises, a second adjusted earnings per equity share is presented in which the results of these are also excluded from earnings.
|
1999
|
1998
|
|||
|
£m
|
earnings per
|
£m
|
earnings per
|
|
|
|
share (p)
|
|
share (p)
|
|
| Basic earnings |
294
|
48.2
|
437
|
74.1
|
| Less: | ||||
| (Profit) on sale of fixed assets and investments: |
|
|
|
|
| continuing operations |
(352)
|
(57.7)
|
(142)
|
(24.1)
|
| Loss/(profit) on sale of businesses and associates |
|
|
|
|
| associates: continuing operations |
44
|
7.2
|
(50)
|
(8.5)
|
| (Profit) on sale of businesses and associates: |
|
|
|
|
| discontinued operations |
--
|
--
|
(215)
|
(36.4)
|
| (Profit) on sale of businesses and associates |
|
|
|
|
| by an associate: continuing operations |
(1)
|
(0.2)
|
(11)
|
(1.9)
|
| Add: | ||||
| Internet enterprises |
39
|
6.4
|
––
|
––
|
| Goodwill amortisation |
131
|
21.5
|
12
|
2.0
|
| Simon & Schuster integration costs |
95
|
15.6
|
120
|
20.3
|
| Year 2000 compliance costs |
5
|
0.8
|
7
|
1.2
|
| Taxation on above items |
70
|
11.5
|
90
|
15.3
|
|
|
|
|
||
| Adjusted earnings before internet enterprises |
325
|
53.3
|
248
|
42.0
|
|
|
|
|
||
| Internet enterprises |
(39)
|
(6.4)
|
––
|
––
|
| Taxation on internet enterprises |
10
|
1.6
|
––
|
––
|
|
|
|
|
||
| Adjusted earnings after internet enterprises |
296
|
48.5
|
248
|
42.0
|
|
|
|
|
||
| Earnings |
294
|
|
437
|
|
| Taxation on the conversion of ordinary shares |
(1)
|
|
(1)
|
|
|
|
|
|
||
| Diluted earnings |
293
|
|
436
|
|
|
|
|
|
||
| Weighted average number of equity shares |
|
|
|
|
| (millions) – for earnings and adjusted earnings |
610.2
|
|
589.8
|
|
| Effect of dilutive share options |
7.0
|
|
5.1
|
|
|
|
|
|
||
| Weighted average number of equity shares |
|
|
|
|
| (millions) – for diluted earnings |
617.2
|
|
594.9
|
|
|
|
|
|
||
| Adjusted earnings per equity share before internet enterprises |
53.3p
|
|
42.0p
|
|
| Adjusted earnings per equity share after internet enterprises |
48.5p
|
|
42.0p
|
|
| Earnings per equity share |
48.2p
|
|
74.1p
|
|
| Diluted earnings per equity share |
47.5p
|
|
73.3p
|
|
|
|
|
|
||
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