10 Earnings per share
Basic earnings per share is calculated by dividing profit for the financial year attributable to equity holders of the company by 681.5 million, being the weighted average number of shares in issue during the year (2009: 681.4 million). Diluted earnings per share is calculated by dividing profit for the financial year attributable to equity holders of the company by 682.0 million, being the weighted average number of shares in issue during the year including dilutive shares (2009: 682.3 million).
To enable a meaningful comparison and in compliance with IAS 33 ‘Earnings per Share’, the weighted average number of shares for the prior year has been based upon the 681,381,233 new ordinary shares in United Utilities Group PLC issued on 28 July 2008.
The difference between the weighted average number of shares used in the basic and the diluted earnings per share calculations represents those ordinary shares deemed to have been issued for no consideration on the conversion of all potential dilutive ordinary shares in accordance with IAS 33 ‘Earnings per Share’.
The weighted average number of shares can be reconciled to the weighted average number of shares including dilutive shares as follows:
