Notes to the consolidated financial statements For the year ended 30 June 2024
11. Earnings per share The Directors believe that underlying earnings per share provides an appropriate reflection of the Group’s performance in the year. Underlying earnings per share, which is an alternative performance measure (“APM”), is calculated based on ‘underlying earnings’, which is also an APM. Refer to page 172 for a glossary of the Group’s APMs, their definition and criteria for how underlying adjustments are considered. The tax effect of the underlying adjustments to statutory earnings has also been considered; refer to Note 9 for the taxation on underlying and statutory profit. Earnings for the year used to calculate earnings per share as reported in these Consolidated financial statements were as follows:
The weighted average number of shares in issue during the year was as follows:
2024 Number of shares 16,098,412
2023 Number of shares 15,825,397
Weighted average number of shares in issue
Effect of dilutive potential shares issuable on exercise of employee share options Diluted weighted average number of shares in issue
275,450
293,992
16,373,862
16,119,389
Earnings per share for the year attributable to equity holders of the Company were:
2024 £’000 6,457 5,848
2023 £’000 18,149 5,670 1,616
2024 p
2023 p
Earnings attributable to ordinary shareholders
Amortisation of acquired client relationship contracts (Note 13)
Based on reported earnings: Basic earnings per share Diluted earnings per share
–
Dual running costs of operating platform
40.1 39.4
114.7 112.6
423
Acquisition and integration-related costs (Note 10)
568
Changes in fair value of deferred contingent consideration (Note 24)
(3)
173
Based on underlying earnings: Basic earnings per share
1,513 11,641 3,039
International strategic review
– – –
163.8 161.0
153.8 151.0
Impairment of goodwill
Diluted earnings per share
Restructure costs
13
Finance cost of deferred contingent consideration (Note 24)
61
(2,566) 26,365
Tax impact of adjustments (Note 9)
(1,895) 24,342
Underlying earnings attributable to ordinary shareholders
Basic earnings per share is calculated by dividing earnings attributable to ordinary shareholders by the weighted average number of shares in issue throughout the period. Included in the weighted average number of shares for basic earnings per share purposes are employee share options at the point all necessary conditions have been satisfied and the options have vested, even if they have not yet been exercised. Diluted earnings per share represents the basic earnings per share adjusted for the effect of dilutive potential shares issuable on exercise of employee share options under the Group’s share-based payment schemes, weighted for the relevant period. The diluted weighted average number of shares in issue and diluted earnings per share considers the effect of all dilutive potential shares issuable on exercise of employee share options. The potential shares issuable includes the contingently issuable shares that have not yet vested and the vested unissued share options that are either nil cost options or have little or no consideration.
132 Brooks Macdonald Group plc Annual Report and Accounts 2024
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