Financial Statements

Notes to the Consolidated Financial Statementsfor the year to 31 December 2008

10. Earnings per share

2008 2007
(restated)
Basic loss per share – total Group (174.8p) (24.2p)
Diluted loss per share – total Group (174.8p) (24.2p)
     
Basic loss per share from continuing operations (179.8p) (25.5p)
Diluted loss per share from continuing operations (179.8p) (25.5p)
     
Basic earnings per share from discontinued operations 5.0p 1.3p
Diluted earnings per share from discontinued operations 5.0p 1.3p
     
Adjusted basic (loss)/earnings per share from continuing operations (9.4p) 29.5p
Adjusted diluted (loss)/earnings per share from continuing operations (9.4p) 29.4p
     
Weighted average number of shares for basic (loss)/earnings per share – million 1,053.1 818.5
Weighted average number of shares for diluted (loss)/earnings per share – million 1,053.1 818.5
Weighted average number of shares for adjusted diluted (loss)/earnings per share – million 1,053.1 821.0

For 2008, 57.4m potential ordinary shares have been excluded from the calculation of the weighted average number of shares as they are anti-dilutive. For 2007, 25.5m potential ordinary shares were excluded from the calculation of the weighted average number of shares as they were anti-dilutive, except in the case of adjusted diluted earnings per share which included 2.5m of dilutive potential ordinary shares.

Under the Override Agreement (see note 37), on 30 April 2009 the Company agreed to issue 57.9m warrants giving the holders the right to subscribe to an equivalent number of ordinary shares in Taylor Wimpey plc at par value. Had the warrants been issued in the 2008 financial year, they would have been anti-dilutive and not included in the calculation of weighted average number of shares for the year.

Adjusted basic and adjusted diluted (loss)/earnings per share, which exclude the impact of exceptional items and the associated net tax charges, are shown to provide clarity on the underlying performance of the continuing Group. A reconciliation from loss from continuing operations attributable to equity shareholders used for basic and diluted loss per share to that used for adjusted (loss)/earnings per share is shown below:

2008
£m
2007
(restated)
£m
Loss from continuing operations for basic loss per share and diluted loss per share (1,894.4) (208.2)
Add exceptional items (see note 5 and note 7) 1,895.0 379.7
(Deduct)/add tax effect of exceptional items (100.0) 70.2
(Loss)/profit from continuing operations for adjusted basic and adjusted diluted (loss)/earnings per share (99.4) 241.7