Deegan5e Sm Ch27

8/20/2019 Deegan5e Sm Ch27

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Chapter 27

Earnings per share

27.1 (a) Basic EPS is determined by dividing the earnings of the entity for thereporting period by the weighted-average number of shares of the entity.Paragraph 10 of AAS 1!! states"

Basic earnings per share shall be calculated by dividing profit or loss attributable toordinary equity holders of the parent entity (the numerator) by the weighted averagenumber of ordinary shares outstanding (the denominator) during the period.

#arnings are determined after dedu$ting any preferen$e share dividendsappropriated for the %nan$ia& year to the e'tent they have not beentreated as e'penses of the entity. Preferen$e share dividends arededu$ted to provide earnings on the basis that the #PS is $a&$u&atedfrom the perspe$tive of ordinary shareho&ders.

*n $onsidering subtra$ting preferen$e dividends for the purpose of $a&$u&ating #PS+ it is ne$essary to determine+ in those periods where thepreferen$e dividend is not paid+ whether the preferen$e shares are$umu&ative or not. ,he $hara$teristi$ of a $umu&ative dividend preferen$eshare is that where dividends are not paid in a parti$u&ar year+ they mustbe paid in &ater years before ordinary shareho&ders are entit&ed to re$eiveany dividends out of pro%ts. *f the preferen$e dividend is not $umu&ative+and no amount has been appropriated for the year+ then it may beignored for the purpose of the #PS $a&$u&ation.

AAS 1!! a&so reuires that earnings must be $a&$u&ated to e'$&ude thefo&&owing items"

• Any portion attributab&e to outside euity interests and

• Any costs of servicing equity, paid or provided for, other than dividends on ordinary

shares and partly-paid shares.

As indicated above, in determining the number of shares we use a weighted average.Specifically, paragraph ! of AASB "" states#

$or the purpose of calculating basic earnings per share, the number of ordinaryshares shall be the weighted average number of ordinary shares outstanding duringthe period.

%n determining the &weighted average number of shares', AASB "" indicates that the number is determined as the total of the number of ordinary shares of the entity outstanding as at thereporting period adusted as follows#

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(i) increased by ordinary shares issued during the reporting period1 and,

(ii) decreased by reductions in the number of ordinary shares during the reporting period,including by way of share buy-bac2s.

where (i) and (ii) are weighted by reference to the number of days from, respectively, the dateof issue of those shares, or the date of reduction, to the reporting date as a proportion of thetotal number of days in the reporting period. 3he weighted average number of shares also hasto ta2e into account &mandatorily convertible securities'4that is, securities that mustultimately be converted to ordinary shares. As paragraph " of AASB "" states#

5rdinary shares that will be issued upon the conversion of a mandatorily convertibleinstrument are included in the calculation of basic earnings per share from the date thecontract is entered into.

3he weighted average number of ordinary shares also needs to ta2e into account partly paidordinary shares unless the partly paid ordinary shares carry no rights to participate in

earnings.

(b) Diluted EPS is calculated and disclosed where an entity has on issue potential ordinaryshares that are dilutive. 3o determine diluted 67S, the weighted average number of shareswill be determined in accordance with the calculations provided for basic 67S, with theinclusion of an additional factor based upon the weighted average number of potentialordinary shares that the company may have had on issue throughout all, or part, of thefinancial year. A potential ordinary share is broadly defined at AASB "" as a financialinstrument or other contract that may entitle its holder to ordinary shares.

AASB "" requires that in determining the weighted average number of shares for diluted

67S we start with the number used to calculate basic 67S and then ma2e adustments to thisnumber. 7aragraph "8 states#

$or the purpose of calculating diluted earnings per share, the number of ordinaryshares shall be the weighted average number of ordinary shares calculated inaccordance with paragraphs ! and 8, plus the weighted average number of ordinaryshares that would be issued on the conversion of all the dilutive potential ordinaryshares into ordinary shares. ilutive potential ordinary shares shall be deemed to have been converted into ordinary shares at the beginning of the period or, if later, the dateof the issue of the potential ordinary shares.

Specifically, we add the following (to the e9tent they are dilutive) to the weighted averagenumber of shares used to calculate basic 67S#

• 3he weighted average number of shares deemed to be issued for no consideration1

• 3he weighted average number of shares that are contingently issued1

,he di&utive potentia& ordinary shares are weighted by the number of days they were outstanding. /i&utive potentia& ordinary shares that have



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been issued sin$e the beginning of the reporting period and remainoutstanding at reporting date are weighted by referen$e to the numberof days from their date of issue to the reporting date.

3here is a general rule that if a potential ordinary share issue would increase 67S, it is not

considered to be dilutive and would be e9cluded from the calculation of diluted 67S. As paragraph : of AASB "" states#

7otential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations.

#a$h type of potentia& ordinary shares (for e'amp&e+ $onvertib&epreferen$e shares+ $onvertib&e notes and share options) must be$onsidered separate&y. onsideration must a&so be given to theprobabi&ity of $onversion. *f the $onversion is at the option of the entity+and the $onversion is probab&e+ then the potentia& ordinary shares must

be in$&uded in the di&uted #PS $a&$u&ation+ even if their in$&usion does notdi&ute #PS.

*n $a&$u&ating earnings for di&uted #PS we have to $onsider the ee$ts onearnings that wou&d have o$$urred if those potentia& ordinary shares thatare di&utive were $onverted to ordinary shares. e wor3 out revisedearnings as if the $onversion of the potentia& ordinary shares hada$tua&&y o$$urred. Paragraph !! of AAS 1!! states"

$or the purpose of calculating diluted earnings per share, an entity shall adust profitor loss attributable to ordinary equity holders of the parent entity, as calculated in

accordance with paragraph , by the after-ta9 effect of#(a) any dividends or other items related to dilutive potential ordinary shares deducted

in arriving at profit or loss attributable to ordinary equity holders of the parententity as calculated in accordance with paragraph 1

(b) any interest recognised in the period related to dilutive potential ordinary shares1and

(c) any other changes in income or e9pense that would result from the conversion of the dilutive potential ordinary shares.

(i) dividends, interest or other financing costs associated with dilutive potentialordinary shares that have been recognised as e9penses during the reporting period1 and

(ii) any other non-discretionary changes in revenues or e9penses for the reporting period that would result from the conversion of the dilutive potential ordinaryshares.

/. 7otential ordinary shares are dilutive if the 67S is recalculated on the basis that the securitieswere converted to ordinary shares, and the recalculated diluted 67S figure is less than the basic67S (which is based on the ordinary shares on issue). 7otential ordinary shares would emanatefrom such instruments as share options, convertible debentures and convertible preference shares.

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/." As paragraph / of AASB "" e9plains#

5rdinary shares may be issued, or the number of ordinary shares outstanding may be reduced,without a corresponding change in resources. 69amples include#(a) a capitalisation or bonus issue (sometimes referred to as a stoc2 dividend)1(b) a bonus element in any other issue, for e9ample a bonus element in a rights issue to

e9isting shareholders1(c) a share split1 and(d) a reverse share split (consolidation of shares).

7aragraph ; further e9plains#

%n a capitalisation or bonus issue or a share split, ordinary shares are issued to e9istingshareholders for no additional consideration. 3herefore, the number of ordinary sharesoutstanding is increased without an increase in resources. 3he number of ordinary sharesoutstanding before the event is adusted for the proportionate change in the number of

ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented. $or e9ample, on a two-for-one bonus issue, the number of ordinaryshares outstanding before the issue is multiplied by three to obtain the new total number of ordinary shares, or by two to obtain the number of additional ordinary shares.

3he adustment factor is provided on page ;++ of the te9t.

/.: iluted 67S must be shown where an entity has on issue potential ordinary shares that aredilutive. 7aragraph 88 of AASB "" states#

An entity shall present on the face of the income statement basic and diluted earnings per

share for profit or loss from continuing operations attributable to the ordinary equityholders of the parent entity and for profit or loss attributable to the ordinary equity holdersof the parent entity for the period for each class of ordinary shares that has a different rightto share in profit for the period. An entity shall present basic and diluted earnings per sharewith equal prominence for all periods presented.

7aragraph 8/ further states#

6arnings per share is presented for every period for which an income statement is presented. %f diluted earnings per share is reported for at least one period, it shall bereported for all periods presented, even if it equals basic earnings per share. %f basic anddiluted earnings per share are equal, dual presentation can be accomplished in one line onthe income statement.

%t is possible for earnings to be negative in a particular period. %n this regard, paragraph 8! states#

An entity shall present basic and diluted earnings per share, even if the amounts arenegative (i.e. a loss per share).

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alculation of the weighted average number of ordinary shares and ordinary share equivalents

Portion No. AdjustmentWeightedaverage

Period of year outstanding fator no. of shares$ully-paid ordinary shares*/*?;0"?*!*?; !*"8+ 8?? ??? ?.;""" ; :;/*?*?;0"?*:*?! *"8+ /+? ??? ?.;""" + /8*+*?!0"?*8*?! 8*"8+ !?? ??? +? :

;+: 8+!

Basic earnings per share for ??! would be# >!!: ??? ;+: 8+! >.8"?

3he comparative figures for ??; would be adusted for the bonus issue. 3he adusted figurewould be# >."? E ?.;""" >.!88. Cote that when determining the weighted averagenumber of shares for the current financial year, the number of shares outstanding prior to the bonus issue is divided by the adustment factor.

$ailure to adust previous period's earnings would provide misleading figures as it would appear that the company was not performing as well, when in fact the reduction in 67S may be due tothe bonus issue.

/.; Weightedaverage !asi

"ully#paid ordinary sharesordinary

sharesEarnings

$EPS

$

"8+ E ?? ??? ??? ?? ??? ???"8+"?F E ?.+? E + ??? ??? "?; !"8+ .?? ?? "?; ! >:? ??? ??? >:.?!

F Guly ??;0" ay ??! is ""+ days Gune ??!0"? Gune ??! is "? days

Cote# %t is assumed that that holders of the partly-paid shares are entitled to dividends in proportion to the paid-up amount of the shares.



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/.! Weightedaverage of

outstandingordinary

sharesEarnings

$EPS

$"8+ E :?? ???*?./+F " ?? ???"8+; E 8?? ???*?./+F "!8 /"8+ 8 E ??? ??? 8/ ""8+

" /8" ;"+ 8?? ???FF >?.+!:

F alculation of adustment factor

Adustment factor P x

P o

where# P x theoretical e9 rights price ( P o E N o) D P r N o D

Hhere P o last sale price or, if higher, the last bid price cum rights

N o the number of ordinary shares required for one right

P r the subscription price of the right (or the present value of the subscription price payable in instalments) plus the present value of dividends forgone inrespect of ordinary shares required for one right not presently participating

in dividends

P x (.+? E ") D ?:

P x .+

P x .+ theoretical e9-rights price >?./+ P o .+?

FF 6arnings

7rofit after ta9 > ;?? ???@ess outside equity interests (?? ???)@ess preference dividends (?? ???)

> 8?? ???

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/.? Earnings Shares

Basic > (!? ??? 0 ? ???) >/? ??? ??? ???onversion of preference shares ??? ??? E I +?? ???Saved preference dividend ? ???

>!? ??? +?? ???

iluted earnings per share >!? ??? +?? ???

>?.8

/. 7aragraph 88 of AASB "" states#

An entity shall present on the face of the income statement basic and diluted earnings per share for profit or loss from continuing operations attributable to the ordinary equity

holders of the parent entity and for profit or loss attributable to the ordinary equity holdersof the parent entity for the period for each class of ordinary shares that has a different rightto share in profit for the period. An entity shall present basic and diluted earnings per sharewith equal prominence for all periods presented.

7aragraph 8/ further states#

6arnings per share is presented for every period for which an income statement is presented. %f diluted earnings per share is reported for at least one period, it shall bereported for all periods presented, even if it equals basic earnings per share. %f basic anddiluted earnings per share are equal, dual presentation can be accomplished in one line on

the income statement.

AASB "" also requires that basic 67S must be presented even if the amounts are negative (a loss per share).

%t is commonly accepted that earnings will affect share prices. By dividing earnings by the number of shares, and by ma2ing assumptions about the lags between earnings and cash flows, 67S datamay provide useful information to the mar2etplace in determining the appropriate mar2et price of the firm's equity securities.

Apart from the shares on issue at reporting date, companies may also have issued certainsecurities which may potentially be converted into ordinary shares. $or e9ample, the company

may have issued convertible preference shares, convertible notes, convertible debentures, or shareoptions all of which may potentially be converted into ordinary shares. 3he requirement to presentdiluted 67S will show how 67S would have been affected if the securities in e9istence atreporting date had actually been converted to ordinary shares. 3his helps to inform investors of how the 67S could conceivably be affected in future.

/. "8+ days E ! /+? ???F ! /+? ???"8+ days

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+ days E >.??FF E " +? ??? "!: ;/;"8+ days >."?

? :: ;/;

67S >" /+? ???FFF? :: ;/;

>?."8!8

F weighted average outstanding ordinary shares.

FF the number of ordinary share equivalents is to be based on a weighted average determined byreference to the number of days during the financial year that the relevant partly-paid ordinaryshares carried those rights to participate in dividends as a proportion of the number of days inthe financial year.

FFF profit after ta9.

/." 3he profit after ta9 earnings for each 8-month period is calculated using the first two columnsgiven in the question, as follows#

%2 &onths ' &onths ' &onths

to ()*'*)+ to (%*%2*), to ()*'*)+7rofit / +?? ??? / ?"+ ;?? ? :8: ??%ncome ta9 e9pense + +?? ??? /+8 ??? " /:: ???7rofit after ta9 ??? ??? + /! ;?? 8 /? ??

!asi EPS

"8+ days E + ??? ??? + ??? ???"8+ days

67S > ??? ???*+ ??? ??? >.:?

Diluted EPS

4ptionsAs the options had not been on issue for the entire year+ we must weightthem for the time they were outstanding. ,he Standard reuires that we

$onsider the number of shares that wou&d ee$tive&y be issued for noconsideration if these options are e'er$ised. ,o determine this we ma3e thefo&&owing $a&$u&ation"

5ptions issued on + September ??; Cumber of shares issuable# ? ??? ??? Cumber of shares that would be issued at mar2et price for the actual proceeds of >+ ??? ??? >+ ??? ??? >.? "8" 8"8

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Cumber of shares deemed issued for no consideration ( "8" 8"8)

As the above calculation is negative, meaning no shares would be issued for no consideration giventhe current mar2et price, and as the e9ercise of the options is not mandatory, then the above optionissue is not dilutive and can be ignored for the purposes of calculating diluted 67S.

5ptions issued on + arch ??! Cumber of shares issuable# ??? ??? Cumber of shares that would be issued at mar2et price for the actual proceeds of > ??? ??? > ??? ??? >.? !?! ?! Cumber of shares deemed issued for no consideration !? !?!

As these options were not in place at the beginning of the year, they will be weighted for thenumber of days they have been on issue# !? !?! E ?/*"8+ 8 8+?

alculation of diluted 67S

> ??? ??? > ??? ??? >.";/"+ ??? ??? D 8 8+? + ?8 8+?

/.: alculation of basic earnings per share

Weighted average $

num-er of ordinary shares Earnings !asi EPS$ully-paid ordinaries#"8+*"8+ E !? ??? ??? !? ??? ???7artly-paid ordinaries#"8+*"8+ E .??*.?? E

? ??? ??? FF + ??? ???ividend reinvestment#!*"8+ E ??? ??? F :! "+7artly-paid call#*"8+ E ?.+?*.?? E? ??? ??? FF ;"+ 88

!8 ?;: !" >" ??? ??? >?."!:c

∗ 3he effective date to commence weighting is after " arch ??4i.e. April ??. At this

point the dividend became payable.

FF 7artly-paid shares should be included in Basic 67S by calculating the fully-paid equivalent

number of shares. Hhen a call is made in the period, the time weighting should commencefrom the date the call is due and payable. %n this case the closing date is ; $ebruary ??.


He need to consider those securities which are potential ordinary shares. 3he options and partly- paid shares are potentially dilutive. 6ach security must be considered separately. $or both optionsand partly-paid shares, there will be an inflow of funds into the organisation when the option is

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e9ercised, or the call is paid. $or the options, the Accounting Standard assumes that there willonly be an inflow of funds if the e9ercise price is less than the mar2et price. 3he weighted averagenumber of shares used to calculate diluted 67S is adusted for options and partly-paid ordinaryshares by adusting for the number of ordinary shares that are assumed to be issued for noconsideration (this can be contrasted to convertible instruments, such as convertible notes or convertible preference shares, where the adustment ta2es into account the ma9imum number of ordinary shares to be issued as well as an adustment to earnings).

Calculate earnings per incremental share Partly-paid shares3here is no adustment to earnings for the capital inflow associated with the partly-paid shares.3heir conversion is deemed to be mandatory, hence they would be ran2ed last if we apply the&trigger test'. 3o determine the number of shares deemed issued for no consideration, we mustac2nowledge that at least >?.+? was outstanding on the partly-paid shares for the entire year, with>.?? being outstanding until ; $ebruary.

3o account for period to call date of ; $ebruary#

Cumber of shares issuable# ?m E (>.?? ÷ >.??) +m Cumber of shares that would be issued at mar2et

price for the actual proceeds of >?# (>?m ÷ >.+?) :m

Cumber deemed issued for no consideration m E (:" ÷ "8+) 88+ /+"

3o account for period from call date of ; $ebruary#

Cumber of shares issuable# ?m E (>?.+? ÷ >.??) .+m

Cumber of shares that would be issued at mar2et

price for the actual proceeds of >?# (>+m ÷ >.+?) m

Cumber deemed issued for no consideration ?.+m E ( ÷ "8+) 8/ "

;" ;/8

Share options issued on 1 January 200As they were on issue at the beginning of the year, they are potentially dilutive for the entire year.He need to consider the number of shares that would effectively be issued for no consideration if these options were e9ercised (if shares were effectively issued for no consideration then thatwould encourage the options holders to e9ercise the option1 there would be no incentive toe9ercise the option if they were not effectively getting something for &free'). Cumber of shares issuable ? ??? ??? Cumber of shares that would be issued at mar2et price

for the actual proceeds of >8m >8 m ÷ >.+ ? :?? ???

Cumber deemed issued for no consideration (:?? ???)

He can see that no shares would effectively be issued for &no consideration' as the above number is negative. As the price to be paid for the shares (the e9ercise price) is greater than the mar2et price of the shares, they would not be deemed to be &shares issued for no consideration', andhence can be ignored for the purposes of calculating diluted 67S. 3hey are ignored because as themar2et price is less than the e9ercise price, it is not li2ely that the options would be e9ercisedunder the current mar2et conditions.



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Share options issued on !0 June 200As they were on issue at the beginning of the year, they are potentially dilutive for the entire year. Cumber of share issuable J >.? ? ??? ??? Cumber of shares that would be issued at mar2et price

for the actual proceeds of >m > m÷

>.+ ; :?? ???

Cumber of shares deemed issued for no consideration 8?? ???

As the number of shares would increase, but notional earnings is not adusted, the above issue isdeemed to be dilutive.

%n determining diluted 67S, we will ignore any potential ordinary shares that are not dilutive. %nthis case, the share option issue made on Ganuary ??; is ignored. As the option issue on "?Gune ??; increases potential ordinary shares without increasing earnings, and as the partly-paidshares also increase the number of shares without increasing earnings, then the &trigger test' would be deemed to be met.

Profit rdinary shares

As reported for basic 67S

>" ??? ??? !8 ?;: !"

5ptions Cil 8?? ???

7artly-paidshares

Cil ;" ;/8

>" ??? ??? !; +/ ;?/

iluted 67S >" ??? ??? !; +/ ;?/ >?.""+.

Again, as the option issue made on Ganuary ??; is not dilutive, it is not included in thecalculation of diluted 67S. =owever, had its conversion been mandatory, it would be included eventhough the effect is anti-dilutive.



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/.+ alculation of basic earnings per share

"ully#paidordinary

shares Guly ?? /+ ??? ??? E "?: ÷ ?.;+:F /" "8; ;?

"8+ ay ? ?? ??? ??? E 8 8 / "!

"8+ !? ?;? 8?!

Basic earnings per share >/? ??? ???!? ?;? 8?!

>?.///

F 3heoretical e9-rights price ((.+? 0 ?.?"+) E ") D .?!;/+" D

Adustment factor .?!;/+.:8+

?.;+:


He need to consider those securities which are potential ordinary shares. 3he convertiblenotes and options are potentially dilutive. 6ach security must be considered separately.

Share optionsAs the options have been on issue for the entire year+ we treat them aspotentia&&y di&utive as of the beginning of the year. ,he Standard reuires

that we $onsider the number of shares that wou&d ee$tive&y be issuedfor no consideration if these options are e'er$ised. ,o determine this wema3e the fo&&owing $a&$u&ation"

Cumber of shares issuable (e9ercise price >)# ? ??? ??? Cumber of shares that would be issued at mar2et price for the actual proceeds of >? ??? ??? >? ??? ??? >.+? ; ??? ???

Cumber of shares deemed issued for no consideration ??? ???

Kiven that the Standard requires that there is no adustment to earnings in relation to theoptions, the earnings per incremental share is >nil. ??? ??? shares will be added to the

denominator to calculate diluted 67S.

Convertible notes*f the notes were $onverted to ordinary shares+ the pre-ta' earningswou&d be in$reased by 5600 000 (the interest e'pense whi$h wou&d no&onger be payab&e whi$h is eua& to 2 000 000 E 52.60 E 10). ,hiswou&d &ead to an after-ta' in$rease in earnings of 5!00 000+ whi$h is5600 000 E (1 8 0.90).

As an additiona& 2 000 000 shares wou&d be $reated+ the in$rease inearnings attributab&e to ordinary shareho&ders on $onversion of the

$onvertib&e debentures wou&d+ on an in$rementa& share basis+ be" 5!00000 : 2 000 000 ; 50.16

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We must no/ ran0 the a-ove potential ordinary shares in order from greatest to least

dilutionAASB "" requires that when we consider whether potential ordinary shares are dilutive, eachissue or series of potential ordinary shares must be considered separately, rather than inaggregate. 6ach issue or series of potential ordinary shares must be considered in sequencefrom the most dilutive (smallest earnings per incremental share) to the least dilutive (largest

earning per incremental share). %n this question, the order from most dilutive to least dilutiveis#

1nrease in sharesEarnings per

inremental share5ptions ??? ??? >nilonvertible notes ??? ??? >?.+

We must no/ determine the trigger test3AASB "" includes a &trigger test' to determine whether potential ordinary shares are dilutive.

%f the shares cause 67S to decrease from the initial amount determined for the trigger test, thenthey are considered dilutive. 3he Standard uses net profit or loss from continuing ordinaryoperations as the initial amount for the trigger test to determine whether potential ordinaryshares are dilutive (however, it requires that the earnings figure used in the actual calculationof diluted 67S include discontinuing operations, adustments for changes in accounting policiesand corrections of fundamental errors). 7aragraph : of AASB "" states#

An entity uses profit or loss from continuing operations attributable to the parententity as the control number to establish whether potential ordinary shares are dilutiveor antidilutive. 7rofit or loss from continuing operations attributable to the parententity is adusted in accordance with paragraph and e9cludes items relating to

discontinued operations.

3he net profit or loss from continuing operations e9cludes amounts relating to discontinuingoperations1 adustments for changes in accounting policies that affect the current reporting

period but relate to prior reporting periods1 and corrections of fundamental errors. He willassume that in this question it is also equal to >/?m.

Apply trigger testHe have already determined the order in which to include potential ordinary shares in thecalculation of diluted 67S.

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Profit andadjustments

rdinaryshares EPS Dilutive4

Cet profit fromcontinuing ordinaryoperations >/? ??? ??? !? ?;? 8?! >?.///

5ptions Cil ??? ???

$7) ))) ))) +2 ),) ')+ $).7')2 5es

onvertible notes >"?? ??? ??? ???

$7) ()) ))) +6 ),) ')+ $).7672 5es

%n the above calculation, profit or loss from continuing operations is the starting point in the

&trigger test'. After this point, each potential ordinary share is considered in order of smallestearnings per incremental share to largest earnings per incremental share. %f a particular securitydoes not dilute 67S then it is not to be included when calculating diluted 67S, unless theconversion is mandatory, or conversion is probable and at the option of the entity.

Calulation of diluted EPS

Profit rdinary shares

As reported for basic67S >/? ??? ??? !? ?;? 8?!

5ptions Cil ??? ???

onvertibledebentures >"?? ??? ??? ???

>/? "?? ??? !: ?;? 8?!

iluted 67S >/? "?? ??? !: ?;? 8?! >?./:/.

/.8

Calulation of !asi Earnings

7rofit attributable to embers of the 7arent 6ntity >8 :;; ???@ess 7reference Share ividends ("?*!*??;) >"8? ???@ess umulative 7reference ividends not paid, nor 7rovided for ("*"*??!)

L>8 ??? ??? 9 ?.?8M >"8? ???Basic 6arnings, based upon 3otal 7rofit >+ /8; ???

Add @oss from iscontinuing 5perations after related %ncome 3a9 >:! ???

Basic 6arnings, based upon 7rofit from ontinuing 5perations >8 8? ???

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3he preference shares issued on arch ??! were not entitled to dividends at "? Gune ??!and no partial dividend entitlement has been accrued.

Calulation of !asi Weighted Average Num-er of Shares

Share 1ssue

Weighting Number of Shares Weighted averagenumber of

shares

5riginal */*??; "8+*"8+ : 8?? ??? : 8?? ???7ublic %ssue ecember ??! *"8+ ; ??? ??? : 8:8 +/+7artly 7aid SharesNan2 for ividends April??!

!*"8+ :;? ??? 9 ?." :: ???

"+ !?

Share Buy Bac2 ay ??! 8*"8+ (8? ???) (:" :+)otal ! "! ?:

Calulation of !asi EPS8 -ased upon Profit from Continuing perations

Basic 67S Basic 6arnings, based upon 7rofit from ontinuing 5perations 8 8? ??? >./+!! per shareBasic Heighted Average Cumber of Shares ! "! ?:

Calulation of !asi EPS8 -ased upon otal Profit

Basic 67S Basic 6arnings, based upon 3otal 7rofit . + /8; ??? >./?8/ per shareBasic Heighted Average Cumber of Shares ! "! ?:


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