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  pearson annual report 2000    

Notes to the Accounts

   
 

10. Earnings per share

In order to show results from operating activities on a comparable basis two adjusted earnings per equity share are presented. First, an adjusted earnings per share is presented which excludes profits or losses on the sale of fixed assets and investments, businesses and associates (see notes 4 and 5) which in 2000 relate primarily to the sale of Lazard and the sale of 20% of Recoletos. Also excluded are Year 2000 compliance costs, integration costs in respect of the acquisitions of Simon & Schuster, Dorling Kindersley and National Computer Systems (NCS) (see note 2), the accelerated amortisation of a financing arrangement fee following the early redemption of a borrowing facility, the premium paid in respect of a forward currency option in connection with the acquisition of NCS (see note 7) and goodwill amortisation. Due to a significant level of expenditure on internet enterprises, a second adjusted earnings per equity share is presented in which the results of these are also excluded from earnings.

  2000 1999
restated



  m earnings per share
(p)
m earnings per share
(p)



Profit for the financial 179 24.6 294 43.0
Adjustments:        
Loss/(profit) on sale of fixed assets and investments: continuing operations (see note 4) 4 0.5 (349) (51.0)
(Profit)/loss on sale of businesses and associates:        
continuing operations (see note 5) (30) (4.0) 44 6.4
(Profit) on sale of businesses and associates:        
discontinued operations (see note 5) (231) (31.7)
Loss/(profit) on sale of businesses and associates by an associate: continuing operations 3 0.4 (1) (0.1)
Internet enterprises (see note 2) 196 26.9 39 5.7
Interest on internet enterprises 9 1.2
Goodwill amortisation (see notes 12/15) 239 32.9 131 19.2
Integration costs (see note 2) 40 5.5 95 13.9
Other net finance costs (see note 7) 24 3.3
Year 2000 compliance costs 5 0.7
Taxation on above items (18) (2.5) 67 9.8
Minority interest share of above items (18) (2.5)



Adjusted earnings before internet enterprises 397 54.6 325 47.6



Internet enterprises (196) (26.9) (39) (5.7)
Interest on internet enterprises (9) (1.2)
Taxation on internet enterprises 37 5.0 10 1.4
Minority interest share of internet enterprises 3 0.4



Adjusted earnings after internet enterprises 232 31.9 296 43.3



Profit for the financial 179 24.3 294 42.5
Taxation on the conversion of ordinary shares (2) (0.3) (1) (0.1)



Diluted earnings 177 24.0 293 42.4



Weighted average number of equity shares (millions) for earnings and adjusted earnings 727.7   683.4  
Effect of dilutive share options 8.4   7.8  



Weighted average number of equity shares (millions) for diluted earnings 736.1   691.2  



note The weighted average number of shares in 1999 has been restated to reflect the rights issue of equity shares during 2000.

2000 Annual Report
* Introduction
* Chairman's letter
* Chief executive's review
* The Pearson Goals
* Internet Enterprises
* The Results
* Pearson Education
* The Penguin Group
* The Financial Times Group
* Recoletos
* Financial Review
* The Board
* Directors' Report
* Personnel Committee Report
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Reconciliation of movements in equity shareholders' funds
* Report to the Auditors to the Members of Pearson plc
* Principal subsidiaries and associates
* Five year summary
* Corporate and Operating Measures
* Shareholder information
* Notes to the accounts
 

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