10 Earnings per share
Basic earnings per share are calculated by dividing profit for the financial year attributable to equity holders of the company by 681.4 million, being the weighted average number of shares in issue during the year (2008 re-presented: 680.4 million).
Diluted earnings per share are calculated by dividing profit for the financial year attributable to equity holders of the company by 682.3 million, being the weighted average number of shares in issue during the year including dilutive shares (2008 re-presented: 680.7 million).
To enable a meaningful comparison and in compliance with IAS 33 ‘Earnings per Share’, the weighted average number of shares for the current and prior year have been based upon the 681,381,233 new ordinary shares in United Utilities Group PLC issued on 28 July 2008.
The actual United Utilities PLC shares in issue in the year from 1 April 2007 to 31 March 2008 have been proportionally applied to the 681,381,233 shares in issue at 28 July 2008 to derive a weighted average number of shares for the comparative year and the earnings per share re-presented accordingly.
The difference between the weighted average number of shares used in the basic and the diluted earnings per share calculations represents those ordinary shares deemed to have been issued for no consideration on the conversion of all potential dilutive ordinary shares in accordance with IAS 33 ‘Earnings per Share’.
The weighted average number of shares can be reconciled to the weighted average number of shares including dilutive shares as follows:
