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Notes to the consolidated financial statements
Year ended 31 July 2007
8. Earnings per share
Basic earnings per share of 73.52 pence (2006: 90.77 pence) is calculated on the profit for the year attributable to equity shareholders of £474 million (2006: £537 million) on a weighted average number of ordinary shares in issue during the year, excluding those held by Employee Benefit Trusts, of 644 million (2006: 592 million). As detailed in note 9, the Group believes that profit measures before the amortisation and impairment of acquired intangibles provide valuable additional information for users of the financial statements. Basic earnings per share, before the amortisation and impairment of acquired intangibles, has, therefore, been presented in the following table.
| 2007 | 2006 | |
|---|---|---|
| Before amortisation and impairment of acquired intangibles | 87.80p | 98.90p |
| Add back: amortisation and impairment of acquired intangibles (net of deferred tax) | (14.28)p | (8.13)p |
| Basic earnings per share | 73.52p | 90.77p |
The impact of all potentially dilutive share options on earnings per share would be to increase the weighted average number of shares in issue to 647 million (2006: 597 million) and therefore reduce basic earnings per share to 73.17 pence (2006: 90.02 pence). Diluted earnings per share before amortisation and impairment of acquired intangibles is 87.39 pence (2006: 98.08 pence).