Why are EPS figures different to the annual report?

The EPS figure that we use is a 'normalised' eps figure based on standardised Thomson Reuters methodology (even if it is disclosed in the accounts, we do not use the management's own normalisation, as discussed below). One off items, non-recurring or exceptional items are subtracted from the reported eps figure to give a more accurate depiction of the firm's underlying profitability. This makes it easier to compare the P/E and EPS figures for a company from one year to the next.

Companies whose reported and normalised EPS figures are consistently different are considered to have a low 'Earnings Quality’. In these cases, management may be in the habit of booking items as 'exceptional' when they are in fact part of their standard business process.