Strategic report Governance Financial statements Other information GLOSSARY OF ALTERNATIVE FINANCIAL PERFORMANCE MEASURES CONTINUED Measure Calculation Why we use this measure Transactional revenue Revenue that is not ongoing in nature and dependent on a client instruction Such revenue is not as high quality as ongoing revenue but helps to show the such as a deal to buy or sell shares or take advice. diversification of our revenue streams. Underlying profit before tax Profit before tax excluding other gains outside of the normal course of business. Provides the best measure for comparison of profit before tax between financial years. In the current year, underlying profit before tax and profit before tax are the same. For the prior year, the figure is achieved by taking profit before tax and subtracting the gain on disposal as per note 4.1 on page 162 Underlying earnings Profit after tax attributable to equity holders of the parent company adjusted for the The unadjusted profit after tax includes gains from transactions that are not repeated existence other gains outside of the normal course of business, such as the disposal of annually or that may not indicate the true performance of the business. subsidiaries. In the current year, this is the same as profit after tax attributable to the equity holders of the parent company. In the prior year, this figure is achieved by taking profit after tax and subtracting the gain on disposal of a subsidiary as outlined in note 41 on page 162. Underlying basic earnings per share Underlying earnings divided by the weighted average number of ordinary shares for the The calculation of basic earnings per share using unadjusted profit after tax includes purposes of basic EPS. those gains that are not consistent from year to year. Underlying diluted earnings per share Underlying earnings divided by the weighted average number of ordinary shares for the The calculation of diluted earnings per share using unadjusted profit after tax includes purposes of diluted EPS. those gains that are not consistent from year to year. 183 Hargreaves Lansdown Report and Financial Statements 2021