Quinn plc is an importer and wholesaler of mobile phone accessories. At the 31 December 2018, the companys authorised share capital is 40,000,000, consisting of 25 pence ordinary shares. Quinn plcs issued ordinary share capital on 1 January 2018 was 15,000,000. On 31 May 2018, the company capitalised reserves by issuing three bonus 25 pence ordinary shares for each 25 pence ordinary share held.

Quinn plcs profit before tax for the year ended 31 December 2018 amounted to 12,500,000, and the income tax liability for 2018 was estimated at 3,000,000.

At 31 December 2018, Quinn plcs share price was 750 pence and the average share price during the year was 350 pence. Quinn plc has an effective rate of income tax of 25%.

Additional Information

1. During the year ended 31 December 2018, Quinn plc had 2,500,000 1 8% convertible preference shares in issue. Each preference share may be converted into five 25 pence ordinary shares during the year ended 31 December 2019.

2. In 2016, Quinn plc issued options that give the companys directors the right to subscribe for 25 pence ordinary shares between 2017 and 2021 at 150 pence per ordinary share. At 31 December 2018, there were 8,000,000 options still outstanding.

3. On 1 January 2018, Quinn plc had 20,000,000 10% convertible loan stock in issue. On 1 September 2018, the loan stock was converted into 25 pence ordinary shares on the basis of 25 ordinary shares for each 50 of loan stock.

4. Quinn plc reports its earnings per share in accordance with IAS 33 Earnings Per Share.

Requirement

(a) Calculate the basic earnings per share figure to be reported in the financial statements of Quinn plc for the year ended 31 December 2018.

(b) Compute the diluted earnings per share of Quinn plc for the year ended 31 December 2018.