9. Earnings per share

20132012
Basic earnings per share
Continuing operations320.1p257.9p
Discontinued operations24.1p
Total320.1p282.0p
Underlying basic earnings per share297.7p255.4p

Basic earnings per share is based on the profit for the year attributable to the equity holders of the parent company and the weighted average number of shares ranking for dividend less the weighted average number of shares held by the ESOT during the period.

Underlying earnings per share is based on profit before the exceptional items described in Note 6.

20132012
Diluted earnings per share
Continuing operations311.7p251.6p
Discontinued operations23.5p
Total311.7p275.1p
Underlying diluted earnings per share289.9p249.1p

Diluted earnings per share is based on the weighted average number of shares used for the calculation of basic earnings per share as increased by the dilutive effect of potential ordinary shares. Dilutive shares arise from employee share option schemes where the exercise price is less than the average market price of the Company's ordinary shares during the period. Their dilutive effect is calculated on the basis of the equivalent number of nil-cost options. Where the option price is above the average market price, the option is not dilutive and is excluded from the diluted EPS calculation. There were no such share options in the current year (2012: nil).

20132012
Fully diluted earnings per share
Continuing operations301.9p240.9p
Discontinued operations22.5p
Total301.9p263.4p
Underlying fully diluted earnings per share280.8p238.5p

Fully diluted earnings per share is based on the weighted average number of shares used for the calculation of basic earnings per share, increased by the weighted average total employee share options outstanding during the period. Fully diluted earnings per share is used for the purposes of the Share Matching Plan, described further in the Remuneration Report.

The table below shows the key variables used in the earnings per share calculations:

2013
£m
2012
£m
Profit after tax attributable to equity holders of the parent company
Continuing operations508.7434.3
Discontinued operations40.6
Total508.7474.9
Less exceptional items (see Note 6)(35.5)(44.8)
Total underlying profit (for underlying EPS)473.2430.1
Weighted average number of shares (millions)
Weighted average shares in issue164.9174.3
Weighted average shares held by ESOT(6.0)(5.9)
Weighted average shares for basic EPS158.9168.4
Weighted average dilutive potential shares4.34.3
Weighted average shares for diluted EPS163.2172.7
Weighted average shares for basic EPS158.9168.4
Weighted average total share options outstanding9.611.9
Weighted average shares for fully diluted EPS168.5180.3