Berkeley plc, a company with no subsidiaries, has issued share capital at 31 December 20X6 of £2.4 million made up of £1.8 million in equity share capital and £0.6 million in 6%

£1 irredeemable preference shares. The nominal value of its equity shares is 20p. The company’s profit after tax for the year ended 31 December 20X6 was £846,000. There were no changes in share capital during 20X6. LO5 From 20X5, the company has had an executive share option scheme which gives the company’s directors the option to purchase a total of 500,000 equity shares for £1.50 each.

These options are exercisable in 20Y0.

On 1 March 20X7 Berkeley raised £1.11 million from an issue of equity shares at full market value of £1.85 per share. During 20X7 the average market price of the equity shares was

£2.10 per share. No further shares were issued in accordance with the executive share option scheme. The post-tax profit for 20X7 was £960,000.

On 1 May 20X8 Berkeley made a rights issue of one new equity share for every four equity shares held at £1.80 per share. The cum rights price on the last day of quotation cum rights was £2.50 per share.

The average market price per equity share in 20X8 was £2.60 per share and the post-tax profit was £1.25 million.

Required:

Calculate Berkeley plc’s basic and diluted earnings per share figures for the years ended 31 December 20X7 and 20X8, including the comparative figures for both years.