Notes to the Consolidated Financial Statements

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for the year to 31 December 2007

10. Earnings per share
From continuing operations

2007 2006
Basic (24.2p) 50.5p
Diluted (24.2p) 50.1p
Adjusted basic 30.8p 50.5p
Adjusted diluted 30.7p 50.1p

Adjusted basic and adjusted diluted earnings per share, which exclude the impact of exceptional items and the associated net tax charges, are shown to provide clarity on the underlying performance of the Group.

The calculation of the basic and diluted earnings per share is based on the following data:

2007 2006
Earnings: £m £m
Earnings for basic earnings per share and diluted earnings per share (197.9) 289.5
Add exceptional items (note 5) 379.7
Add tax effect of exceptional items 70.2
Earnings for adjusted basic and adjusted diluted earnings per share 252.0 289.5

Weighted average number of shares: 2007
For basic earnings per share 818.5 572.9
Weighted average of dilutive options 2.5 5.0
Weighted average of dilutive awards under bonus plans 0.5
For diluted earnings per share 821.0 578.4