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## Notes to the financial statements (cont’d) 

For the year ended 30 June 2012 

## 29 Earnings per share 

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## Basic earnings per share 

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: 

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At 30 June 2012, 4,040,701 options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would not have been dilutive. 

The average market value of the Company’s shares for purposes of calculating the dilutive effect of share options was based on quoted market prices for the period during which the options were outstanding. 

## 30 Acquisition of subsidiary 

On 4 October 2011, the Group gained control of DKN by acquiring 100% of shares not already owned by the Group under a scheme of arrangement. The acquisition price was $0.80 per share and resulted in a total consideration payable to shareholders of $96 million. 

In the period from acquisition to 30 June 2012, DKN contributed revenue of $18,424,000 and a profit of $3,871,000 to the Group’s results. This excludes integration and transaction costs (refer Other Expenses in note 8) and the fair value gain on investment in DKN (refer note 7). 

If the acquisition had occurred on 1 July 2011, management estimates that the consolidated revenue would have been $622,139,000 and consolidated profit for the year would have been $16,048,000. In determining these amounts, management has assumed that the fair value adjustments, determined provisionally, that arose on the date of acquisition would have been the same if the acquisition had occurred on 1 July 2011. 

The following summarises the major classes of consideration transferred, and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: 

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