NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 26

26. EARNINGS PER SHARE
 

The calculation of basic earnings per share for the Group is based on profit and loss attributable to the parent for the year of R117.7 million (June 2016 restated: net profit of R140.3 million), and a weighted average number of shares of 554.4 million (June 2016: 553.0 million) shares in issue. The calculation of headline earnings per share for the Group is calculated on adjusted headline earnings of R123.8 million (June 2016 restated: R145.6 million), and a weighted average number of shares of 554.4 million (June 2016: 553.0 million) shares in issue.

Under the contingent consideration arrangement, AfroCentric Investment Corporation Limited is required to issue WAD Holdings Proprietary Limited an additional 31 366 977 shares (2016: 26 192 902 shares) based on management’s best estimate as per the Acquisition of Shares agreement. WAD Holdings Proprietary Limited has now elected to receive the contingent consideration in cash and not shares. This no longer has an impact on the weighted average number of shares for diluted earnings per share in the current financial year.

   GROUP    
   June 2017   
R’000
   
   June 2016 
Restated*
R’000
 
  
Reconciliation of headline earnings             
Total profit and loss attributable to the parent  117 669       140 349    
Basic earnings  117 669       140 349    
Adjusted for:             
Impairment/(reversal of impairment) 16 640**    10 217    
Tax effect of impairment/(reversal of impairment) –      (1 360)   
Loss on disposal of assets  681      245    
Tax effect of loss on disposal of asset  (191)     (69)   
Fair value gain on investment property  (418)     –    
Tax effect of fair value gain on Investment property  94       –    
Total non-controlling interest effect of adjustments  (10 637)      (3 815)   
Headline earnings  123 838       145 567    
Earnings per share (cents)            
Basic  21.23       25.38    
Diluted  21.23       24.23    
Headline earnings per share (cents)            
Basic  22.34       26.33    
Diluted  22.34       25.13    
Cash earnings per share (cents)***             
Basic  81.33       71.23    
Diluted  81.33       68.00    
Weighted average number of shares  554 377 328       552 958 931    
Adjusted for:             
– dilutionary impact of contingent shares  –       26 192 902    
Weighted average number of shares for diluted earnings per share  554 377 328       579 151 833    
* See Note 39 for details regarding the restatement of the June 2016 results.             
** This relates to impairment of Goodwill relating to IE Business which is currently dormant as it ceased operations.             
*** The cash generated from operations was used to arrive at this figure.             
Normalised earnings (non-IFRS information)¹             
Headline earnings  123 838       145 567    
Adjusted by:  120 275       24 960    
– Finance costs: conditional obligation  45 906       24 960    
– Fair value of contingent consideration  59 582       –    
– Sanlam indemnity expense  14 787       –    
Normalised headline earnings  244 113       170 527    
Normalised headline earnings per share (cents)            
Basic  44.03       30.84    
Diluted  44.03       29.44    

1 Given the material non-cash, non-trading and non-recurring deductions which have a significant adverse impact on the earnings, management has adopted a non-IFRS earnings measure model.


NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 26