| |
The calculation of basic earnings per ordinary share is based on net profit for the year of R14 300 million (December 2009: R14 650 million), and the
weighted average number of ordinary shares in issue (excluding treasury shares) is 1 842 209 650 (December 2009: 1 851 260 334).
The calculation of basic and adjusted headline earnings per ordinary share is calculated on basic headline earnings of R14 011 million (December 2009:
R14 869 million) and adjusted headline earnings of R13 761 million (December 2009: R13 963 million) respectively, and the weighted average number
of ordinary shares in issue (excluding treasury shares) is 1 842 209 650 (December 2009: 1 851 260 334).
The calculation of diluted, basic headline and adjusted headline earnings per ordinary share is based on the respective earnings as indicated above, and the
weighted average number of fully diluted ordinary shares in issue (excluding treasury shares) is 1 851 962 720 (December 2009: 1 860 307 308) during the year.
Reconciliation between net profit attributable to the equity holders of the Company and headline earnings
| |
December 2010 |
|
|
December 2009 |
|
| |
|
Rm
Gross |
|
Rm
Net |
|
|
Rm
Gross |
|
Rm
Net |
|
| Net profit for the period |
|
|
|
14 300 |
|
|
14 650 |
|
|
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
| Loss on disposal of profit property, plant and equipment* |
|
146 |
|
126 |
|
|
132 |
|
124 |
|
| Reversal/(impairment) of profit property, plant and equipment* |
|
(231) |
|
(189) |
|
|
167 |
|
134 |
|
| Profit on disposal of investments |
|
(258) |
|
(258) |
|
|
(53) |
|
(53) |
|
| Other impairment charges on intangible assets |
|
32 |
|
32 |
|
|
14 |
|
14 |
|
| Basic headline earnings |
|
|
|
14 011 |
|
|
|
|
14 869 |
|
| Adjusted for: |
|
|
|
|
|
|
|
|
|
|
| Reversal of put options in respect of subsidiaries |
|
|
|
|
|
|
|
|
|
|
| – Fair value adjustment |
|
(208) |
|
(172) |
|
|
(537) |
|
(537) |
|
| – Finance costs |
|
471 |
|
471 |
|
|
537 |
|
537 |
|
| – Foreign exchange (gain)/loss |
|
(241) |
|
(277) |
|
|
(701) |
|
(701) |
|
| – Non-controlling shareholders’ share of profit |
|
(272) |
|
(272) |
|
|
(205) |
|
(205) |
|
| Adjusted headline earnings |
|
|
|
13 761 |
|
|
|
|
13 963 |
|
| Earnings per ordinary share (cents) |
|
|
|
|
|
|
|
|
|
|
| – Basic |
|
|
|
776,2 |
|
|
|
|
791,4 |
|
| – Basic headline |
|
|
|
760,6 |
|
|
|
|
803,2 |
|
| – Adjusted headline |
|
|
|
747,0 |
|
|
|
|
754,3 |
|
| Diluted earnings per share (cents) |
|
|
|
|
|
|
|
|
|
|
| – Basic |
|
|
|
764,5 |
|
|
|
|
781,5 |
|
| – Basic headline |
|
|
|
748,9 |
|
|
|
|
793,2 |
|
| – Adjusted headline |
|
|
|
735,4 |
|
|
|
|
744,6 |
|
*Amounts are measured after taking into account non-controlling interests.
| |
|
December
2010
‘000 |
|
|
December
2009
‘000 |
|
| Weighted average number of shares |
|
1 842 210 |
|
|
1 851 260 |
|
| Adjusted for |
|
|
|
|
|
|
| – Share options |
|
820 |
|
|
1 389 |
|
| – Share options – Zakhele |
|
2 111 |
|
|
— |
|
| – Share appreciation rights |
|
6 822 |
|
|
7 658 |
|
| Weighted average number of shares for diluted earnings per share calculation |
|
1 851 963 |
|
|
1 860 307 |
|
Explanation of adjusted headline earnings
Impact of put options
IFRS requires the Group to account for a written put option held by non-controlling shareholders of the Group’s subsidiaries, which provides them with the right to
require the subsidiary to acquire their shareholding at fair value. Prior to the implementation of IFRS, the shareholding was treated as a non-controlling shareholder
in the subsidiary as all risks and rewards associated with these shares, including dividends, accrued to the non-controlling shareholder. IAS 32 requires that in the
circumstances described in the previous paragraph, (a) the present value of the future redemption amount be reclassified from equity to financial liabilities and
that the financial liability so reclassified subsequently be measured in accordance with IAS 39; (b) in accordance with IAS 39, all subsequent changes in the fair value
of the liability together with the related interest charges arising from present valuing the future liability, be recognised in profit or loss and (c) the non-controlling
shareholder holding the put option no longer be regarded as a non-controlling shareholder, but rather as a creditor from the date of receiving the put option.
Although the Group has complied with the requirements of IAS 32 and IAS 39 as outlined above, the board of directors has reservations about the
appropriateness of this treatment in view of the fact that (a) the recording of a liability for the present value of the future strike price of the written put
option results in the recording of a liability that is inconsistent with the framework, as there is no present obligation for the future strike price, (b) the
shares considered to be subject to the contracts that are outstanding, have the same rights as any other shares and should therefore be accounted for
as a derivative rather than creating an exception to the accounting required under IAS 39. |