11. Basic and diluted earnings per share | |
| 2004 pence |
2003 pence | |
|---|---|---|
| Basic earnings per share before amortisation of goodwill and exceptional items | 60.7 | 47.8 |
| Effect of amortisation of goodwill | (19.1) | (14.3) |
| Effect of exceptional items | 5.8 | (8.4) |
| Basic earnings per share | 47.4 | 25.1 |
The calculation of basic earnings per share is based on profit for the year of £473m (2003 £251m) divided by the weighted average number of Ordinary shares in issue of 998.0m (2003 995.9m). Basic earnings per share before amortisation of goodwill and exceptional items is disclosed to indicate the underlying profitability of the Group and is based on profit of £606m (2003 £476m):
| 2004 £m |
2003 £m | |
|---|---|---|
| Earnings before amortisation of goodwill and exceptional items | 606 | 476 |
| Effect of amortisation of goodwill | (191) | (142) |
| Effect of exceptional items | 58 | (83) |
| Profit for the year | 473 | 251 |
| 2004 m |
2003 m | |
|---|---|---|
| Weighted average number of Ordinary shares in issue during the year* | 998.0 | 995.9 |
| Dilutive effect of options outstanding | 9.1 | 7.3 |
| Diluted weighted average number of Ordinary shares in issue during the year | 1,007.1 | 1,003.2 |
* Excluding those held by The GUS plc ESOP Trust, The GUS plc ESOP Trust No. 2, The GUS plc ESOP Trust No. 3 and The GUS plc ESOP Trust No. 4.
The calculation of diluted earnings per share reflects the potential dilutive effect of the exercise of employee share options.