11. Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year, excluding those held in the Employee Share Ownership Trust, which are treated as cancelled.

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all dilutive potential ordinary shares. The Group has two classes of dilutive potential ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year and contingently issuable shares under the Long-Term Incentive Plan.


2013
£000
2012
£000
Earnings

Continuing operations

Basic and diluted:

Profit for the year — attributable to ordinary shareholders11,09711,886
Add back: Special items after taxation1,897(555)
Adjusted earnings12,99411,331
Discontinued operations

Basic and diluted:

Profit for the year — attributable to ordinary shareholders13,2972,270
Add back: Special items after taxation(10,520)1,339
Adjusted earnings2,7773,609
Total

Basic and diluted:

Profit for the year — attributable to ordinary shareholders24,39414,156
Add back: Special items after taxation(8,623)784
Adjusted earnings15,77114,940

2013
Number
2012
Number
Number of shares

Weighted average number of ordinary shares in issue29,136,76728,956,961
Weighted average number of shares owned by Employee Share Ownership Trust(413,712)(330,708)
Average number of ordinary shares in issue for basic earnings28,723,05528,626,253
Dilutive impact of share options outstanding864,992919,982
Diluted weighted average number of ordinary shares in issue29,588,04729,546,235

2013
Pence
2012
Pence
Earnings per share

Continuing operations:

Basic:

Adjusted45.239.6
Unadjusted38.641.5
Diluted:

Adjusted43.938.4
Unadjusted37.540.2
Discontinued operations:

Basic:

Adjusted9.712.6
Unadjusted46.37.9
Diluted:

Adjusted9.412.2
Unadjusted44.97.7
Total:

Basic:

Adjusted54.952.2
Unadjusted84.949.5
Diluted:

Adjusted53.350.6
Unadjusted82.447.9

No options over ordinary shares have been exercised since 30 April 2013.