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Notes to the accounts

**10 Earnings per share**
The calculation of basic earnings per share of 20.4p (2003: 21.6p) is based on the group profit of £24.7m (2003: £26.0m) and on the weighted average number of ordinary shares in issue during the year of 120.9 million (2003: 120.5 million).

Earnings per share before exceptional items and goodwill amortisation is calculated as follows:
Basic earnings per share attributable to:
	Earnings			Earnings per share
	2004 £m	2003 £m		2004 pence	2003 pence
Basic earnings and earnings per share	24.7	26.0		20.4	21.6
Goodwill amortisation	13.0	12.4		10.7	10.3
Loss on sale or termination of businesses	1.2	0.4		1.0	0.4
Tax credit on goodwill amortisation	(0.1)	(0.2)		-	(0.2)
Exceptional tax credit arising from recognition of net deferred tax assets	(9.8)	-		(8.1)	-
Exceptional tax charge arising on intra-group dividends	9.8	-		8.1	-
Earnings and earnings per share before exceptional items and goodwill amortisation	38.8	38.6		32.1	32.1
Earnings per share before exceptional items and goodwill amortisation is presented to show more clearly the underlying performance of the group. The calculation of diluted earnings per share of 20.4p (2003: 21.6p) is based on the group profit of £24.7m (2003: £26.0m) and on the diluted weighted average number of 5p ordinary shares in issue during the year of 121.1 million (2003: 120.5 million).
The basic weighted average number of ordinary shares in issue is reconciled to the diluted weighted average number of shares in issue in the following table:
				Weighted average number of 5p ordinary shares
				2004 millions	2003 millions
Basic weighted average number of 5p ordinary shares in issue				120.9	120.5
Weighted average number of dilutive 5p ordinary shares under option				0.7	0.6
Weighted average number of 5p ordinary shares that would have been issued at average market value from proceeds of dilutive share options				(0.5)	(0.6)
				121.1	120.5