Notes to the financial statements
6. Earnings per share
Basic earnings per share ('EPS') is calculated by dividing the earnings attributable to shareholders of £50.6m (2007: £32.5m) by the weighted average number of shares in issue during the period of 256.5 million (2007: 257.2 million) which has been adjusted to exclude the weighted average number of shares held by the employee trust.
For diluted EPS, the weighted average number of shares is adjusted to assume conversion of all dilutive potential ordinary shares relating to employees of the Group.
The weighted average number of shares used in the basic and diluted EPS calculations can be reconciled as follows:
| Group | 2008 m |
2007 m |
|---|---|---|
| Used in basic EPS calculation | 256.5 | 257.2 |
| Dilutive effect of awards | 0.4 | 0.3 |
| Used in diluted EPS calculation | 256.9 | 257.5 |
Basic and diluted EPS are presented below:
| Group | 2008 pence |
2007 pence |
|---|---|---|
| Basic EPS | 19.73 | 12.64 |
| Dilutive effect of awards | (0.03) | (0.02) |
| Diluted EPS | 19.70 | 12.62 |
A pro forma EPS and a reconciliation to the statutory EPS is presented in note 32.