Adjusted basic earnings per share (EPS)

Adjusted basic earnings per share pence

Adjusted EPS is disclosed and reconciled in note 11.

Description

This measure of performance is calculated as profit before exceptional items and certain re-measurements for the year, attributable to equity shareholders of the parent company, divided by the weighted average number of shares in issue during the year.

Target

To deliver growth in adjusted EPS. This measure is used as one of the performance conditions in the Company’s Executive Share Option Scheme and Long Term Incentive Scheme, details of which are in the Remuneration report.

Analysis/comment

We have seen a 7% growth in adjusted EPS during a challenging year.

Source/verification

The measure of adjusted EPS is reported on the Group Income Statement, part of the audited Financial Statements.

Total shareholder return (TSR)

Total shareholder return indices

Description

Total shareholder return measures the return to shareholders in terms of the growth of an investment in the Company’s shares, assuming that dividends and returns of capital are reinvested. We compare the Company’s TSR with those of the other 99 members of the FTSE 100.

Target

TSR is used as one of the performance conditions in the Company’s Long Term Incentive Scheme, details of which are in the Remuneration report.

Analysis/comment

We have outperformed the FTSE 100 Index by 31% over a five year period.

Source/verification

Alithos Ltd.

Dividends per share

Ordinary dividend pence

† excludes special dividend of 25p

Description

This is the total dividend per share (excluding special dividends) paid in respect of each financial year.

Target

To deliver real growth per annum.

Analysis/comment

The 2006 dividend shows an increase of 6% on the 2005 dividend which is in excess of the rise in the Retail Price Index.

Source/verification

The dividend is reported as part of the audited Financial Statements.