GRANT plc prepares its financial statements to 31 December each year and the companys average share price for the year ended 31 December 2016 was 250 pence.

The companys issued ordinary share capital on 1 January 2016, which comprised 50 pence ordinary shares, was 15,000,000. On 30 June 2016, the company capitalised reserves by issuing three bonus 50 pence ordinary shares for each 50 pence ordinary share held.

GRANT plcs profit before tax for the year ended 31 December 2016 was 12,500,000, and the income tax liability for 2016 was assessed at 3,000,000 before adjusting for an under-provision of 1,000,000 in respect of 2015. GRANT plc has an effective rate of income tax of 25%.

Additional Information

1.During the year ended 31 December 2016, GRANT plc had 2,500,000 1 10% convertible preference shares in issue. Each preference share may be converted into three 50 pence ordinary shares during the year ended 31 December 2017.

2.In 2012, GRANT plc issued options that give the companys directors the right to subscribe for 50 pence ordinary shares between 2015 and 2019 at 125 pence per ordinary share. At 31 December 2016, there were 3,500,000 options still outstanding.

3.On 1 January 2016, GRANT plc had 20,000,000 10% convertible loan stock in issue. On 1 October 2016, the loan stock was converted into 50 pence ordinary shares on the basis of 25 ordinary shares for each 50 of loan stock.

Requirement

Calculate GRANT plcs basic and diluted earnings per share for the year ended 31 December 2016 in accordance with IAS 33 Earnings Per Share.