12. Earnings per share
2019 | 2018 | |
|---|---|---|
’000 | ’000 | |
Weighted average number of ordinary shares for the purposes of basic earnings per share | 189,797 | 190,037 |
Effect of dilutive potential ordinary shares: Share options | 1,143 | 1,405 |
Weighted average number of ordinary shares for the purpose of diluted earnings per share | 190,940 | 191,442 |
The denominator for the purposes of calculating both basic and diluted earnings per share has been adjusted to reflect shares issued during the year (note 20).
The earnings used in both the adjusted basic and adjusted diluted earnings per share are adjusted to take into account the net interest on defined benefit obligations (note 33) and the effect of non-trading items after tax.
The prior year reported adjusted basic earnings per share and adjusted diluted earnings per share has been represented to include the tax effect on non-trading items.
The calculation of the basic and diluted earnings per share attributable to the ordinary equity holders of the parent is based on the following data:
2019 | 2018 | |
|---|---|---|
€m | €m | |
Earnings | ||
Earnings for the purposes of basic and diluted earnings per share - | ||
Profit for the financial year attributable to equity holders of the parent | 60.2 | 57.8 |
Non-trading item after tax (note 10) | (14.9) | (13.7) |
Net interest cost on defined benefit obligations (note 33 vii) | - | (0.1) |
Earnings for the purposes of adjusted basic and diluted earnings per share | 45.3 | 44.0 |
2019 | 2018 | |
|---|---|---|
Cent | Cent | |
Basic earnings per share | 31.7 | 30.4 |
Diluted earnings per share | 31.5 | 30.2 |
Adjusted basic earnings per share | 23.8 | 23.1 |
Adjusted diluted earnings per share | 23.7 | 23.0 |
Diluted earnings per ordinary share
Diluted earnings per Ordinary Share is calculated by adjusting the weighted average number of Ordinary Shares outstanding to assume the exercise of all vested share option awards at 31 December. Share option awards which have not yet satisfied the required performance conditions for vesting are excluded from the calculation. The dilutive effect of vested share options is calculated as the difference in the average market value during the period and the option price. Share options outstanding at 31 December are set out in note 32. Of the 2,496,500 (2018: 2,399,000) vested options at 31 December 2019, the dilutive effect is 1,143,000 ordinary shares (2018: 1,405,000 ordinary shares).