Basic EPS for the year A company’s issued share capital is £2m, comprising four million ordinary shares at 25p each and one million 8% preference shares of £1. An extract from the company’s statement of comprehensive income for the year to 31 March 2020 is as follows:

£000

Profit before tax 560

Taxation 170

Profit after tax 390

Preference dividends of £80,000 were paid during the year. 

Required: 

Calculate basic EPS for the year