In the 1999 Annual Report and Accounts of Associated British Ports Holdings p Ic, the directors report earnings per share - basic, and earnings per share -

underlying, as follows:

The directors state that the underlying basis is a more appropriate basis for comparing performance between periods.
Discuss the relevance of the basic figure of l.6p reported for 1999.LO26-7

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Underlying Goodwill Exceptional Total amortisation items 1999 1998 m m m m m Profit on ordinary activities after tax attributable to shareholders Dividends 86.3 (3.8) (76.9) 5.6 84.1 (39.4) - (39.4) (37.2) Retained profit/(loss) 46.9 (3.8) (76.9) (33.8) 46.9 Earnings per share - basic 24.6 (1.1) (21.9) 1.6p 22.4p Earnings per share - underlying 24.6p 22.4p Note || Reconciliation of profit used for calculating the basic and underlying earnings per share: 1999 m 1998 m Profit for year attributable to shareholders for calculating basic earnings per share Amortisation of goodwill 5.6 84.1 3.8 2.0 Impairment of goodwill 60.6 Impairment of fixed assets 19.6 Profit on sale of fixed assets (3.3) (1.2) Withdrawal from a discontinued business (1.2) Attributable tax 0.3 Profit for year attributable to shareholders for calculating the underlying earnings per share 86.3 84.0