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 R302.0 million (June 2020: net profit of R303.5 million), and a weighted average number of shares of 574.6 million (June 2020: 574.2 million) shares in issue. The calculation of headline earnings per share for the Group is calculated on adjusted headline earnings of R329.1 million (June 2020: R306.7 million), and a weighted average number of shares of 574.6 million (June 2020: 574.2 million) shares in issue.

   Group
   2021 
R’000 
2020 
R’000 
Reconciliation of headline earnings per share       
Total profit and loss attributable to the parent  316 041  311 697 
From discontinued operation  (14 008) (8 122)
Basic Earnings  302 033  303 575 
Adjusted for:       
Reversal of impairments of intangible assets*  2 411  2 919 
Reversal of goodwill impairment reversal  771    
Reversal of loss on disposal of subsidiaries  10 014  – 
Loss on disposal of tangible assets  3 947  2 130 
Scrapping of intangible assets  26 793  – 
Reversal of profit on disposal of investments  (1 314) – 
Reversal of fair value losses  7 653  – 
Reversal of foreign currency translation reserve reclassification  10 401    
Total non-controlling interest effect of adjustments  (10 882) (1 278)
Total tax effects of adjustments  (22 759) (596)
Headline earnings  329 068  306 750 
Earnings per share (cents)      
Basic from continued operations  55.00  54.28 
Basic from discontinued operations  (2.44) (1.41)
Basic  52.56  52.87 
Diluted from continued operations  53.45  53.18 
Diluted from discontinued operations  (2.37) (1.39)
Diluted  51.08  51.79 
Headline earnings per share (cents)      
Basic  57.26  53.42 
Diluted  55.66  52.33 
Cash earnings per share (cents)**       
Basic  176.28  163.65 
Diluted  171.33  160.33 
Weighted average number of ordinary shares used in the calculation of basic earnings per share  574 655 416  574 241 248 
– dilutionary impact of contingent shares***  16 590 000  11 900 000 
Weighted average number of ordinary shares used in the calculation of diluted earnings per share  591 245 416  586 141 248 
* This relates to impairment of the Schema6, IFM systems and the reversal of the Gexus impairment (prior year: impairment of the Solatium system
** The cash generated from operations was used to arrive at this figure.
*** The contingent shares relate to the share based payment awards. Refer to Note 30 for details.
   

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS | Note 26