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EPS meaning

What does EPS mean?
EPS means earnings per share. In legal practice it is a key performance metric appearing in prospectuses, listing documents, annual reports, takeover and scheme documents, circulars and shareholder communications, and as a target in employee share plans and in valuation materials. It is not defined by company legislation or case law; its meaning and calculation are set by accounting standards (notably IAS 33 Earnings per Share under UK‑adopted IFRS and IFRS as adopted by the EU). Basic EPS is profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue. Diluted EPS adjusts for potential ordinary shares (for example options, warrants or convertibles). IAS 33 requires presentation of EPS where an entity’s ordinary shares or potential ordinary shares are publicly traded; other issuers may disclose it voluntarily. “Adjusted” or “underlying” EPS is a non‑GAAP/alternative performance measure. If used, it must be clearly defined and reconciled to the IFRS measure (UK: FCA Listing Rules, DTR and Prospectus Regulation Rules; Ireland: Euronext Dublin rules, Prospectus Regulation and ESMA APM Guidelines). Usage and calculation conventions are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, subject to the reporting framework adopted.
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NEWS
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NEWS
EU law weekly update: budget, infringement package, Cyber Resilience Act, product liability, ESG ratings, EMIR 3, T+1, DMA enforcement, carbon removals, design reform (week to 21 November 2024)

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PRACTICE NOTES
EU IP jurisdiction and forum shopping: Brussels I (recast), EUTMs, EU designs, copyright, patents, the UPC and Hague Conventions

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PRACTICE NOTES
UK company share buybacks: statutory, regulatory and institutional investor guidelines for private, listed and AIM companies, including CA 2006, UKLRs, DTRs, UK MAR and the Takeover Code

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