94 / 198
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
92
1.
Results of operations
continued
1.4 Finance costs and finance income
Finance costs/income are recognised in profit and loss using the effective interest rate method as the instruments to
which this relates are measured at amortised cost.
2016
R’000
2015
R’000
Finance costs
– Bank
61
54
– Loans and facilities
33 851
60 557
– Unwinding of contingent purchase price
9 712
6 999
– Other
4 583
354
– Discounting of payables
165 903
165 201
214 110
233 165
Finance income
– Bank
(34 002)
(13 458)
– Loans
(4 336)
(2 522)
– Related-party loans (refer to note 8)
(25 351)
(14 486)
– Other
(577)
(255)
– Discounting of receivables
(129 633)
(142 326)
(193 899)
(173 047)
Net finance costs
20 211
60 118
1.5 Earnings per share
(a) Basic
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the year.
(b) Headline
Headline earnings are calculated by applying the principles contained in Circular 2/2015 as issued by the South
African Institute of Chartered Accountants, as required by JSE Limited.
The weighted average number of ordinary shares used is the same as that used for the basic earnings per share.
(c) Diluted – basic and headline
Diluted earnings per share are calculated by adjusting the number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The dilutive potential ordinary shares of the Company are the
forfeitable shares granted. For this calculation, an adjustment is made for the number of shares that would be
issued on vesting under the forfeitable share plan.
(d) Core headline
Core headline earnings per share are calculated by adding back to headline earnings, the amortisation of intangible
assets net of deferred taxation and non-controlling interests as a consequence of the purchase price allocations
completed in terms of IFRS 3(R) –
Business Combinations
.