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Financial Statements
Diluted earnings per share amounts are calculated by dividing the net
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 shares that would have been
issued on exercise of all the dilutive options into ordinary shares.
The following table reflects the income and share data used in the basic and
diluted earnings per share calculations:
Restated
2011
2010
£’000
£’000
Continuing operations
Profit used for basic earnings
23,238
28,222
Effect on earnings of dilutive potential
ordinary shares
27
304
Diluted earnings
23,265
28,526
Denominator
Number
Number
Weighted average number of
shares used in basic EPS
257,330,462 240,479,372
Effects of convertible Income Shares
339,555
4,502,013
Effects of employee share options
253,479
1,420,000
Weighted average number of
shares used in diluted EPS
257,923,496 246,401,385
The adjusted earnings per share is 9.7p (2010: 10.8p restated). The numerator
used in calculating the normalised earnings per share of £24,832,000 (2010:
£25,948,000 restated) is the underlying operating profit of £37,535,000
(2010: £34,249,000 restated) plus the gains on separately disclosed property
assets of £2,050,000 (2010: £8,258,000) less share based payments of
£467,000 (2010: £746,000), less finance costs of £5,553,000 (2010:
£6,650,000) plus the finance income of £924,000 (2010: 928,000) and
allowing for a 28% tax charge of £9,657,000 (2010 £10,091,000 restated).
The adjusted earnings per share are shown to give a comparable measure of
the underlying earnings per share.
On 21 September 2007 1,504,120 options, with an exercise price of
166.2p, were granted. These are potentially dilutive instruments but were
not included in the calculation of diluted earnings per share because they
were anti-dilutive for the year and prior period as the average market price
of the shares was lower than the exercise price.
The Income Shareholders had an option to convert their Income Shares into
Ordinary shares at a rate of 0.854 Ordinary shares for each Income Share around
31March2010. These are therefore dilutive instruments at 28 February 2011. On
9April, 3,628,158 Income Shareswere converted into3,098,440Ordinary shares.
On 10March 2008, 3 July 2008 and 20August 2009 respectively, 2.79m, 2.25m
and 2.4m share options were granted to Directors andmanagement under the
Stobart Executive Incentive Planwith an exercise price of £nil. 1,395,000 of these
share options vested on 31 March 2010 are included as dilutive instruments.
The remaining share options are not dilutive instruments as the vesting conditions
have not been met unconditionally at the year end date.
Own shares held in an employee benefit trust are excluded from the weighted
average number of shares.
10. Dividends
Dividends Paid
2011
2011 2010
2010
on Ordinary Shares
Rate
Rate
p
£
p
£
Final dividend for
2010 paid 18 June 2010
4.0 10,606,596
-
-
Interim dividend paid
10 December 2010
2.0 5,303,298
-
-
Final dividend for 2009
paid 22 June 2009
-
-
3.3 7,977,629
Interim dividend paid
10 December 2009
-
-
2.0 5,015,766
Dividends paid
6.0 15,909,894 5.3 12,993,395
A final dividend of 4.0p per share totaling £10,606,596 was declared on 23
May 2011 and will be paid on 7 July 2011. This is not recognised as a
liability as at 28 February 2011.
11. Business Combinations
There were no acquisitions during the period 1 March 2010 to 28 February
2011.
Completion of acquisitions in the previous periodwhere the acquisition
accounting was determined only provisionally.
The accounting for the acquisition of Stobart Air Limited was completed in
the period with no further adjustments made.
Acquisitions in the period from 1 March 2009 to 28 February 2010
Acquisition of Stobart Air Limited
On 30 May 2009 the Group acquired 100% of the voting rights of Stobart
Air Limited, an unlisted company based in the United Kingdom, which
operates a commercial airport.
The fair value of the identifiable assets and liabilities of Stobart Air Limited as
at the date of acquisition and the corresponding carrying amounts immediately
before the acquisition were:
Fair value Previous
recognised on carrying
on acquisition
value
£’000
£’000
Property, plant and equipment
14,153
4,746
Cash and cash equivalents
32
32
Trade and other receivables
224
224
Inventories
47
47
14,456
5,049
Trade payables
(357)
(357)
Other payables and deferred income
(8,316)
(7,699)
Deferred tax
(3,932)
-
(12,605)
(8,056)
Net assets
1,851
(3,007)
Goodwill arising on acquisition
8,028
Total consideration
9,879
The total cost of the combinationwas £9,879,000 and comprised the following:
£’000
Cash
-
Shares issued
9,607
Costs associated with the acquisition
272
Total
9,879
The Group issued 9,041,957 ordinary shares with a fair value of £1.0625 each.
This price was the market value at the date of the acquisition.
The goodwill of £8,028,000 represents the fair value of the future earning
potential of the business and other intangible assets, which cannot be
individually separated and reliably measured due to their nature, in excess
of the fair value of net assets identified. These intangible assets include
expected synergies available through development of the site including
transfer of the Carlisle transport depot to the airport site.
Included in other payables and deferred income were balances owed to the
vendor of £4.6m which were repaid immediately following acquisition
under the terms of the option which stipulated that this part of the
consideration was initially allocated to repayment of these balances.