Notes to the Group Financial Statements
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| 9. Earnings per share | |||||
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The calculation of basic earnings per ordinary share is based on a profit for the year of $1,285 million (2006: $1,014 million) for continuing and discontinued operations, and a profit for the year of $175 million (2006: $54 million) for discontinued operations. The calculation of basic earnings per ordinary share for continuing and discontinued operations is based on 1,852,685,662 (2006: 1,804,148,292) ordinary shares, being the weighted average number of ordinary shares in issue during the year after excluding the shares owned by the Man Group plc employee trusts. For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The diluted earnings per share is based on a profit for the year of $1,310 million (2006: $1,047 million) for continuing and discontinued operations, and a profit for the year of $175 million (2006: $54 million) for discontinued operations. The calculation of diluted earnings per ordinary share for continuing and discontinued operations is based on 2,051,372,034 (2006: 2,055,637,782) ordinary shares, calculated as shown in the following table: |
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| 2007 | 2006* | ||||
| Total Number (millions) |
Weighted average (millions) |
Total Number (millions) |
Weighted average (millions) |
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| Number of shares at 1 April 2006 (and 1 April 2005) | 1,845.9 | 1,845.9 | 1,846.3 | 1,846.2 | |
| Issues of shares | 78.1 | 52.1 | 51.0 | 20.4 | |
| Repurchase and cancellation of own shares | (44.0) | (22.0) | (51.3) | (33.0) | |
| Number of shares at 31 March 2007 (and 31 March 2006) | 1,880.0 | 1,876.0 | 1,846.0 | 1,833.6 | |
| Shares owned by employee trusts | (22.1) | (23.3) | (25.2) | (29.4) | |
| Basic number of shares | 1,857.9 | 1,852.7 | 1,820.8 | 1,804.2 | |
| Share awards under incentive schemes | 52.9 | 54.7 | 57.6 | 61.2 | |
| Employee share options | 11.9 | 4.2 | 11.4 | 3.0 | |
| Exchangeable bonds | 116.0 | 139.8 | 187.2 | 187.2 | |
| Dilutive number of shares | 2,038.7 | 2,051.4 | 2,077.2 | 2,055.6 | |
| In addition to the statutory earnings per share on continuing operations and on total operations measures, underlying earnings per share figures are shown. Underlying earnings per share on continuing operations and on total operations are given as growth in this measure is one of the Group’s core financial objectives. | |||||
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| The reconciliation of adjusted earnings per share is given in the table below. | |||||||||
| 2007 | 2006 | ||||||||
| Basic post-tax earnings $m |
Diluted post-tax earnings $m |
Basic earnings per share cents |
Diluted earnings per share cents |
Basic post-tax earnings $m |
Diluted post-tax earnings $m |
Basic earnings per share cents |
Diluted earnings per share cents |
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| Earnings per share on continuing
and discontinued operations+ |
1,285 | 1,310 | 69.3 | 63.9 | 1,014 | 1,047 | 56.2 | 51.0 | |
| Exceptional items | 6 | 6 | 0.3 | 0.3 | 28 | 28 | 1.5 | 1.3 | |
| Earnings per share on continuing
and discontinued operations before exceptional items |
1,291 | 1,316 | 69.6 | 64.2 | 1,042 | 1,075 | 57.7 | 52.3 | |
| Performance fee related income | (275) | (275) | (14.9) | (13.4) | (342) | (342) | (18.9) | (16.6) | |
| Underlying earnings per share on continuing and discontinued operations | 1,016 | 1,041 | 54.7 | 50.8 | 700 | 733 | 38.8 | 35.7 | |
| The reconciliation of earnings per share from continuing and discontinued operations, to earnings per share from continuing operations, is given in the table below. | |||||||||
| 2007 | 2006 | ||||||||
| Basic post-tax earnings $m |
Diluted post-tax earnings $m |
Basic earnings per share cents |
Diluted earnings per share cents |
Basic post-tax earnings $m |
Diluted post-tax earnings $m |
Basic earnings per share cents |
Diluted earnings per share cents |
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| Earnings per share on continuing
and discontinued operations+ |
1,285 | 1,310 | 69.3 | 63.9 | 1,014 | 1,047 | 56.2 | 51.0 | |
| Discontinued operations | (175) | (175) | (9.4) | (8.5) | (54) | (54) | (3.0) | (2.7) | |
| Earnings per share on continuing operations | 1,110 | 1,135 | 59.9 | 55.4 | 960 | 993 | 53.2 | 48.3 | |
| Exceptional items | – | – | – | – | (20) | (20) | (1.1) | (1.0) | |
| Performance fee related income | (275) | (275) | (14.9) | (13.4) | (342) | (342) | (19.0) | (16.7) | |
| Underlying earnings
per share on continuing operations |
835 | 860 | 45.0 | 42.0 | 598 | 631 | 33.1 | 30.6 | |
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+ The difference between basic and diluted post-tax earnings on continuing and discontinued operations is the adding back of the finance expense in the period relating to the exchangeable bonds. *Comparative figures for earnings per share have been restated to reflect the sub-division of each 18 US cent Ordinary Share into six Ordinary Shares of 3 US cents each, effective on 14 August 2006. |
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