Aqua-fuel Ltd is a fast-growing marine biotech company operating in the ASEAN region. The following information relates to Aqua-fuel Ltd: Besides the ordinary shares above, for many years Aqua-fuel Ltd has also had in issue £3.00 million 5% preference shares. On 1 July 2021, Aqua-fuel Ltd issued an additional 600,000 ordinary shares at full market price. On 1 August 2021, Aqua-fuel Ltd made a rights issue of three ordinary share for every ten ordinary shares in issue at a price of £2.35 per share. The share issue was fully subscribed. On 31 July 2021, the market price of one share in Aqua-fuel Ltd was £3.00. The average price of one share in Aqua-fuel Ltd during the year ended 31 December 2021 was £2.94. In addition, employees who have worked at Aqua-fuel Ltd since 1 January 2019 have been granted options to purchase 2,000,000 ordinary shares at £2.10 per share on 1 January 2023. Required (a) Calculate basic earnings per share for Aqua-fuel Ltd for the year ended 31 December 2021. (b) Calculate fully diluted earnings per share for Aqua-fuel Ltd for the year ended 31 December 2021.

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Aqua-fuel Ltd is a fast-growing marine biotech company operating in the ASEAN region. The following information relates to Aqua-fuel Ltd:

Besides the ordinary shares above, for many years Aqua-fuel Ltd has also had in issue £3.00 million 5% preference shares.

On 1 July 2021, Aqua-fuel Ltd issued an additional 600,000 ordinary shares at full market price. On 1 August 2021, Aqua-fuel Ltd made a rights issue of three ordinary share for every ten ordinary shares in issue at a price of £2.35 per share. The share issue was fully subscribed.

On 31 July 2021, the market price of one share in Aqua-fuel Ltd was £3.00. The average price of one share in Aqua-fuel Ltd during the year ended 31 December 2021 was £2.94.

In addition, employees who have worked at Aqua-fuel Ltd since 1 January 2019 have been granted options to purchase 2,000,000 ordinary shares at £2.10 per share on 1 January 2023.

Required

(a) Calculate basic earnings per share for Aqua-fuel Ltd for the year ended 31 December 2021.

(b) Calculate fully diluted earnings per share for Aqua-fuel Ltd for the year ended 31 December 2021.

Property - carrying amount, 1 January 2021
Ordinary shares £1.00 at 1 January 2021
Other components of equity (Share premium) at 1 January
2021
Revaluation surplus at 1 January 2021
Retained earnings at 1 January 2021
Draft profit for the year ended 31 December 2021
4% Convertible loan notes
Dividends paid
Inventories
Trade receivables
Cash
Current liabilities
Notes
(ii)
(i)
(i)
(ii)
(iii)
£'000 £'000
14,400
16,000
2,400
640
5,016
1,800
6,400
1,552
33,808
2,896
3,448
4,408
8,656
33,808
Transcribed Image Text:Property - carrying amount, 1 January 2021 Ordinary shares £1.00 at 1 January 2021 Other components of equity (Share premium) at 1 January 2021 Revaluation surplus at 1 January 2021 Retained earnings at 1 January 2021 Draft profit for the year ended 31 December 2021 4% Convertible loan notes Dividends paid Inventories Trade receivables Cash Current liabilities Notes (ii) (i) (i) (ii) (iii) £'000 £'000 14,400 16,000 2,400 640 5,016 1,800 6,400 1,552 33,808 2,896 3,448 4,408 8,656 33,808
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