9. EARNINGS PER SHARE AND NET ASSETS PER SHARE
Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the
weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on
the conversion of all the dilutive potential ordinary shares into ordinary shares.

The calculation of the basic and diluted earnings per share is based on the following data:
             
          2006
£’000		 2005
restated
£’000
Earnings            
Earnings for the purposes of basic and diluted earnings per share 23,559 20,090
             
          2006
£’000		 2005
£’000
Number of shares            
Weighted average number of Ordinary shares for the purposes of basic earnings per share 37,151 36,675
Effect of dilutive potential Ordinary shares:    
Share options 252 208
Weighted average number of Ordinary shares for the purpose of diluted earnings per share 37,403 36,883
Basic earnings per share (pence) 63.4 54.8
Diluted earnings per share (pence) 63.0 54.5
             
Net assets per share and diluted net assets per share have been calculated as follows:    
  Net
assets
£’000		 No. of
shares
’000		 2006
Net assets
per share
pence		 Net
assets
£’000		 No. of
shares
’000		 2005
restated
Net assets
per share
pence
Basic net assets per share 231,413 40,712 568 187,508 36,722 510
Effect of dilutive potential Ordinary shares 2,086 547 (3) 2,647 779 (3)
Diluted net assets per share 233,499 41,259 565 190,155 37,501 507