9. Earnings Per Share

Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period. The weighted average number of shares excludes shares held by an Employee Benefit Trust (see note 20) and has been adjusted for the issue/purchase of shares during the period.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. These represent share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the 52 weeks to 30 March 2012.

The Group has also chosen to present an alternative earnings per share measure, with profit adjusted for non-recurring items because it better reflects the Group's underlying performance.

For the period


52 weeks to
30 March 2012
Number of shares
m
52 weeks to
1 April 2011
Number of shares
m
Weighted average number of shares in issue 203.8 211.5
Less: shares held by the Employee Benefit Trust (weighted average) (3.9) (1.1)
Weighted average number of shares for calculating basic earnings per share 199.9 210.4
Weighted average number of dilutive shares 1.0 2.4
Total number of shares for calculating diluted earnings per share 200.9 212.8

For the period


52 weeks to
30 March 2012
£m
52 weeks to
1 April 2011
£m
Basic earnings attributable to equity shareholders 68.4 85.5
Non-recurring items (see note 5):

Operating expenses (1.9) 7.5
Tax on non-recurring items 0.9 (2.1)
Underlying earnings before non-recurring items 67.4 90.9

Earnings per share is calculated as follows:

For the period


52 weeks to
30 March 2012
52 weeks to
1 April 2011
Basic earnings per ordinary share 34.2p 40.7p
Diluted earnings per ordinary share 34.0p 40.2p
Basic earnings per ordinary share before non-recurring items 33.7p 43.2p
Diluted earnings per ordinary share before non-recurring items 33.5p 42.7p

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