NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 1.5

1. Results of operations
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.

(a) Basic

  2016
  2015
 
Profit attributable to equity holders of the parent (R’000) 691 590   577 617  
Weighted average number of ordinary shares in issue (thousands) 665 950   665 030  
Basic earnings per share (cents per share) 103.85   86.86  
   
(b) Headline

  Profit 
before tax 
and non- 
controlling 
interest 
R’000 
Tax 
R’000 
Non- 
controlling 
interest 
R’000 
Headline 
earnings 
R’000 
 
2016          
Profit attributable to equity holders of the parent  1 050 395  (318 783) (40 022) 691 590    
Profit on disposal of property, plant and equipment  (500) 140  —  (360)   
Loss on disposal of intangible assets  (1) —    
Impairment of intangible assets  2 568  (719) (300) 1 549    
Loss on disposal of subsidiary  3 885  1 569  —  5 454    
Profit on dilution/disposal of associate and joint venture  (29 975)  —  —  (29 975)   
Headline earnings           668 261    
Weighted average number of ordinary shares in issue (thousands)          665 950    
Headline earnings per share (cents per share)          100.35    
2015                
Profit attributable to equity holders of the parent  846 690  (265 497) (3 576) 577 617    
Profit on disposal of property, plant and equipment  (1 707) 478  (1 225)   
Impairment of property, plant and equipment in joint venture  3 264  —  —  3 264    
Profit on disposal of subsidiary  (3 962) —  —  (3 962)   
Profit on disposal of associate  (37 238) 8 595  —  (28 643)   
Headline earnings           547 051    
Weighted average number of ordinary shares in issue (thousands)          665 030    
Headline earnings per share (cents per share)          82.26    
(c) Diluted - basic and headline

  2016 
R’000 
  2015 
R’000 
 
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

  2016 
R’000 
  2015 
R’000 
 
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    

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 1.5