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

   2017        2016    
Profit attributable to equity holders of the parent (R’000) 786 965     691 590  
Weighted average number of ordinary shares in issue (thousands) 667 349     665 950  
Basic earnings per share (cents per share) 117.92     103.85   
   
(b) Headline

             
    Profit 
before tax 
and  non- controlling 
interest 
R’000
 
Tax 
R’000
 
Non- 
controlling 
interest 
R’000
 
   Headline 
earnings 
R’000
 
   
2017                   
Profit attributable to equity holders of the parent  1 152 898  (332 037) (33 896)    786 965    
Loss on disposal of property, plant and equipment  30  (8)    23    
Impairment of intangible assets in joint venture  339  —  —     339    
Headline earnings              787 327    
Weighted average number of ordinary shares in issue (thousands)             667 349    
Headline earnings per share (cents per share)             117.98    
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    
(c) Diluted – basic and headline

   2017 
 R’000 
      2016 
 R’000 
  
Basic earnings (R’000) 786 965     691 590  
Weighted average number of ordinary shares in issue (thousands) 667 349     665 950  
Adjusted for forfeitable shares (thousands) 5 813     6 570  
Weighted average number of ordinary shares for diluted earnings (thousands) 673 162     672 520  
Diluted basic earnings per share (cents per share) 116.91     102.84  
Headline earnings (R’000) 787 327     668 261  
Weighted average number of ordinary shares for diluted headline earnings (thousands) 673 162     672 520  
Diluted headline earnings per share (cents) 116.96     99.37   
(d) Core headline

Reconciliation between net profit for the period and core headline earnings for the period:                
Net profit for the period (R’000) 786 965        691 590    
Amortisation on intangibles raised through business combinations net of tax and non-controlling interest (R’000) 14 069        16 650    
Core net profit for the period (R’000) 801 034        708 240    
Headline earnings adjustments (R’000) 362        (23 329)   
Core headline earnings (R’000) 801 396        684 911    
Weighted average number of ordinary shares in issue (thousands) 667 349        665 950    
Core headline earnings per share (cents per share) 120.09        102.85     

Notes to the Group annual financial statements l Note 1.5