Summary of statutory and supplementary IFRS and EEV basis results
Year ended 31 December 2006
Summary of statutory and supplementary IFRS and EEV basis results
The following tables show the results reported in the statutory financial statements and supplementary EEV basis results. This page does not form part of the statutory financial statements.
International Financial Reporting Standards (IFRS) basis results
Statutory IFRS basis results
| 2006 | 2005 | |
|---|---|---|
| Profit after tax attributable to equity holders of the Company | £874m | £748m |
| Basic earnings per share | 36.2p | 31.6p |
| Dividends per share declared and paid in reporting period | 16.44p | 15.95p |
| Shareholders’ funds, excluding minority interests | £5.5bn | £5.2bn |
Supplementary IFRS basis information
| 2006 £m |
2005 £m |
|
|---|---|---|
| Operating profit from continuing operations based on longer-term investment returns | 893 | 957 |
| Goodwill impairment charge | – | (120) |
| Short-term fluctuations in investment returns | 162 | 211 |
| Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes | 167 | (50) |
| Profit before tax from continuing operations attributable to shareholders (including actual investment returns) | 1,222 | 998 |
| Operating earnings per share from continuing operations after related tax and minority interests | 26.4p | 32.2p |
| Dividends per share in respect of the reporting period (including interim dividend of 5.42p (2005: 5.30p) and final dividend of 11.72p (2005: 11.02p) declared after the end of the reporting period) | 17.14p | 16.32p |
| Funds under management | £251bn | £234bn |
Supplementary European Embedded Value (EEV) basis results
| 2006 £m |
2005 £m |
|
|---|---|---|
| Operating profit from continuing operations based on longer-term investment returns | 1,976 | 1,712 |
| Goodwill impairment charge | – | (120) |
| Short-term fluctuations in investment returns | 745 | 1,068 |
| Mark to market value movements on core borrowings | 85 | (67) |
| Shareholders’ share of actuarial and other gains and losses on defined benefit pension schemes | 207 | (47) |
| Effect of changes in economic assumptions and time value of cost of options and guarantees | 59 | (302) |
| Profit before tax from continuing operations | 3,072 | 2,244 |
| Operating earnings per share from continuing operations after related tax and minority interests | 57.6p | 56.6p |
| Basic earnings per share | 91.7p | 66.9p |
| Shareholders’ funds, excluding minority interests | £11.9bn | £10.3bn |
Notes
IFRS basis results
The basis of preparation of statutory IFRS basis results and supplementary IFRS basis information is consistent with that applied for the 2005 results and financial statements.
EEV basis results
The EEV basis results are extracted from supplementary information and are not results that form part of the Group’s financial statements.
Supplementary information
The results shown above distinguish ‘operating profits’ based on longer-term investment returns from ‘profits before tax’. The reconciling items are presented in accordance with
the Group’s policy as described in the Group’s financial statements and supplementary information. Items excluded from operating profit based on longer-term investment
returns represent primarily the effects of altered investment market conditions (short-term fluctuations), actuarial gains and losses on defined benefit pension schemes, and
exceptional items, including goodwill impairment. For EEV, the operating profit based on longer-term investment returns figure also excludes the mark to market value
movements on core borrowings, the effect of changes in economic assumptions and the time value of the cost of options and guarantees.