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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
94
1.
Results of operations
continued
1.5 Earnings per share continued
2016
R’000
2015
R’000
(c)
Diluted – basic and headline
Basic earnings (R’000)
691 590
577 617
Dilutive instrument (R’000)
—
(5 603)
Diluted earnings (R’000)
691 590
572 014
Weighted average number of ordinary shares in issue (thousands)
665 950
665 030
Adjusted for forfeitable shares (thousands)
6 570
7 672
Weighted average number of ordinary shares for diluted earnings (thousands)
672 520
672 702
Diluted basic earnings per share (cents per share)
102.84
85.03
Headline earnings (R’000)
668 261
547 051
Dilutive instrument (R’000)
—
(5 603)
Diluted headline earnings (R’000)
668 261
541 448
Weighted average number of ordinary shares for diluted headline earnings (thousands)
672 520
672 702
Diluted headline earnings per share (cents)
99.37
80.49
(d)
Core headline
Reconciliation between net profit for the period and core headline earnings
for the period:
Net profit for the period (R’000)
691 590
577 617
Amortisation on intangibles raised through business combinations net of tax and
non-controlling interest (R’000)
16 650
18 961
Core net profit for the period (R’000)
708 240
596 578
Headline earnings adjustments (R’000)
(23 329)
(30 566)
Core headline earnings (R’000)
684 911
566 012
Weighted average number of ordinary shares in issue (thousands)
665 950
665 030
Core headline earnings per share (cents per share)
102.85
85.11
1.6 Cash generated by operations
Reconciliation of operating profit to cash generated by operating activities:
Operating profit
1 142 376
986 146
Adjustments for:
Depreciation of property, plant and equipment
42 738
40 813
Amortisation of intangible assets
130 353
121 819
Impairment of intangible assets
2 568
—
Discounting of receivables recognised in revenue
129 633
142 326
Discounting of payables recognised in changes in inventories of finished goods
(165 903)
(165 201)
Impairment of loans
—
4 907
Profit on disposal of property, plant and equipment
(500)
(1 707)
Loss on disposal of intangible assets
4
—
Loss/(profit) on disposal of subsidiary
3 885
(3 962)
Profit on disposal of associates
—
(37 238)
Equity compensation benefit expense
23 845
24 290
Net forex profit
(68 857)
(25 718)
Changes in working capital (excluding the effects of acquisitions and disposals):
Increase in inventories
(225 756)
(123 152)
Decrease/(increase) in trade and other receivables
52 252
(538 269)
(Decrease)/increase in trade and other payables
(319 884)
2 500
(Increase)/decrease in loans receivable
(1 281)
5 322
Increase in starter pack assets
(1 288)
(3 070)
744 185
429 806