9 Taxation (continued)
Reductions in the corporation tax rate from 23% to 21% (effective from 1 April 2014) and to 20% (effective 1 April 2015) were substantively enacted on 2 July 2013. In the Budget on 8 July 2015, the Chancellor announced additional planned reductions to 18% by 2020. This will reduce the Company’s future current tax charge accordingly. The deferred tax asset at 27 June 2015 has been calculated based on the rate of 20% substantively enacted at the balance sheet date.
The impact of the reduction in the UK corporation tax rate from 21% to 20% from April 2015 amounts to £74,000 lower charge in the financial year to 27 June 2015. The adjustment for prior year in 2015 relates to additional tax relief on qualifying R&D expenditure for prior periods.
The Company has an unrecognised deferred tax asset of £191,300 (2014: £191,300). This asset has not been recognised in these Financial Statements as suitable profits to utilise the underlying capital 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 being 106,759,000 (2014: 65,635,000).
Basic diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares. At 27 June 2015 the diluted weighted average number of shares in issue was 110,507,000 (2014: 70,169,000).
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. These 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 net income • IFRS 3 ‘Business Combinations’ discount charge relating to deferred consideration payable and receivable • The taxation effect at the appropriate rate on adjustments
Significant and non-recurring items are tabled in the Strategic Report on page 8.
Profit Profit attributable to equity holders of the Company (basic) Significant non-recurring and other items
Numerator for adjusted earnings per share calculation (adjusted basic)
Basic ‘000
Shares Weighted average number of ordinary shares in issue during the period Dilutive effect of share options
52 weeks to 27 Jun 2015 £000
6,179 2,321 8,500
Diluted ‘000
Basic ‘000
52 weeks to 28 Jun 2014 £000
4,400 26
4,426
Diluted ‘000
106,759 106,759 65,635 65,635 -
3,748 Pence Adjusted basic and adjusted diluted earnings per share
5.8 8.0
Diluted Pence
-
Basic Pence
106,759 110,507 65,635 70,169 Basic
Earnings per share Basic and diluted earnings per share
Diluted Pence
5.6 7.7
6.7 6.7
6.3 6.3
4,534
56
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