Earnings per share

Basic earnings per share decreased by 57.1% to 78.57p (six months ended 30 September 2006: 183.25p), the decrease predominantly relating to the lower revaluation surplus.

In the same way that we adjust profit before tax to remove capital and one-off items to give revenue profit, we also report an adjusted earnings per share figure, for which the calculation is set out in note 7 to the financial statements. Adjusted diluted earnings per share increased from 32.84p per share for the six months ended 30 September 2006 to 36.46p per share in 2007, an 11.0% increase. The increase in adjusted earnings per share is largely attributable to a significantly lower tax rate following REIT conversion partially offset by the interest costs associated with the SMIF acquisition.