9 Taxation (continued)
Reductions in the corporation tax rate from 24% to 23% (effective from 1 April 2013) and to 21% (effective 1 April 2014) were substantially enacted on 3 July 2012 and 2 July 2013 respectively. Further reduction to 20% (effective from 1 April 2015) was substantially enacted on 2 July 2013. Tis will reduce the company’s future current tax charge accordingly. Te deferred tax asset at 28 June 2014 has been calculated based on the 20% rate.
Te impact of the reduction in the UK corporation tax rate from 23% to 21% from April 2014 amounts to £82,000 lower charge in the financial year to 28 June 2014. Te rate change on deferred tax has had an adverse impact on the current year tax charge amounting to £197,000. Te adjustment for prior year in 2013 relates to additional tax relief on qualifying R&D expenditure for prior periods.
Te parent company has an unrecognised deferred tax asset of £191,300 (2013: £219,995). Tis asset has not been recognised in these Financial Statements as suitable profits to utilise the underlying losses are not expected to arise in the future.
10 Earnings Per Ordinary Share
Basic earnings per share for the period is calculated on the basis of profit for the year after tax, divided by the weighted average number of shares in issue 65,635,000 (2013: 59,904,000).
Basic diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potential dilutive ordinary shares; which for 28 June 2014 the diluted weighted average number is 70,169,000 shares, (2013: 65,653,000).
An adjusted earnings per share and an adjusted diluted earnings per share have also been calculated as in the opinion of the Board this will allow shareholders to gain a clearer understanding of the trading performance of the Group. Tese adjusted earnings per share exclude:
• Reorganisation and other significant non-recurring costs • IAS 39 ‘Financial Instruments: Recognition and Measurement’ fair value adjustment relating to the Group’s interest rate swaps and foreign exchange contracts
• IAS 19 (revised) ‘Accounting for retirement benefits’ relating to the net income • IFRS 3 ‘Business Combinations’ discount charge relating to the deferred consideration payable and receivable • Te taxation effect at the appropriate rate on the adjustments.
Earnings £000
Continued
Discontinued Basic earnings
Significant non-recurring and other items Adjusted earnings
Profit on discontinued operations Taxation on discontinued operations Discontinued earnings
Continuing adjusted earnings Dilutive effect of options Continued
Discontinued
Basic diluted earnings Adjusted diluted earnings
Discontinued diluted earnings Continuing adjusted diluted earnings
Year ending 28 June 2014 Weighted number of
average
shares amount 000’s
Per share Pence
4,400
4,400 4,426
4,426 -
-
4,400 4,400 4,426 4,426
- 6.7
26-- (1,629) 65,635
6.7 6.7
7,345 5,716
--- (2,073) --- 223 --- (1,850) 65,635
4,534
70,169 -
-
6.7 -
-
--- 3,034 -
--- (1,850) 70,169
6.3 6.3 6.3 6.3
4,311 7,345 5,716 3,866
3,866 -
-
Earnings £000
Year ending 29 June 2013 Weighted number of 000’ s
average shares
4,311
--- 3,034 65,635
- -
59,904 -
59,904 - - -
59,904 5,749
65,653 - - -
- -
65,653
Per share amount Pence
7.2 5.1
12.3
(2.7) 9.6
(3.5) 0.4
(3.1) 6.5
- -
6.6 4.6
11.2 8.7
(2.8) 5.9
41
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