On 1 January 20X1 a company had in issue 6 million £1 equity shares and £7.5 million of 7% convertible redeemable loan stock, on which the conversion terms were: LO5 On 31 December 20X4 40 equity shares for each £125 of loan stock On 31 December 20X5 40 equity shares for each £130 of loan stock On 31 December 20X6 40 equity shares for each £135 of loan stock The liability component of the convertible redeemable loan stock was carried in the statement of financial position on 1 January 20X1 at £7.2 million and the effective interest rate 8.5%. The company pays tax at the rate of 20%.

The profit attributable to the equity holders for the year ended 31 December 20X1 was £1.5 million.

Required:

Calculate the basic and diluted EPS for the year ended 31 December 20X1.