NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2007
|
|||||
| 1. | EARNINGS | ||||
| 2007 | 2006 | ||||
| R million | R million | ||||
| HEADLINE EARNINGS RECONCILIATION | |||||
| Net profit for the year attributable to equity holders | 6 942 | 8 202 | |||
| Plus/(minus) – portion attributable to equity holders: | |||||
| – Negative goodwill | (44) | – | |||
| – Net impairment of investments, assets and goodwill | 12 | 157 | |||
| – Profit on redemption and sale of investments | (256) | (3 475) | |||
| – Restructuring costs | 221 | 279 | |||
| – Other capital and non-recurring items | (10) | (67) | |||
| – Net surplus, after tax on disposal of property, plant and equipment | (12) | (12) | |||
| Headline earnings | 6 853 | 5 084 | |||
| Non-recurring portion of BEE costs added back | – | 380 | |||
| Headline earnings – Excluding non-recurring portion of BEE costs | 6 853 | 5 464 | |||
| EARNINGS PER SHARE | Cents | Cents | |||
| Headline earnings per share | |||||
| – Basic | 1 445.4 | 1 052.3 | |||
| – Diluted | 1 401.3 | 1 027.7 | |||
| Headline earnings per share – Excluding non-recurring portion of BEE costs | |||||
| – Basic | 1 445.4 | 1 130.9 | |||
| – Diluted | 1 401.3 | 1 106.1 | |||
| Earnings per share | |||||
| – Basic | 1 464.2 | 1 697.6 | |||
| – Diluted | 1 418.5 | 1 671.3 | |||
| Earnings per share | |||||
| In determining earnings per share and headline earnings per share the weighted number of shares in issue, being 474 123 689 (2006: 483 154 691), was taken into account after deduction of treasury shares as well as shares held in The Remgro Share Trust and certain associated companies. | |||||
| Diluted earnings per share | |||||
In determining diluted earnings per share and diluted headline earnings per share the weighted number of shares in issue was adjusted for the deemed dilutive effect of the shares accepted by participants in the Remgro Share Scheme but not yet delivered. Because the scheme shares have to be accounted for as treasury shares, the delivery thereof to participants will be regarded as an issue of shares. As the market value (fair value) of the shares at date of delivery will differ from the offer value, the number of shares represented by the difference will be regarded as an issue of ordinary shares for no consideration. These imputed shares total 1 672 153 (2006: 1 352 255) and have been added to the weighted number of shares to determine the dilutive effect. Some subsidiary and associated companies have similar management incentive schemes as well as other instruments that can dilute these companies’ earnings in the future. To calculate Remgro’s diluted earnings per share, R186 million (2006: R105 million) and R193 million |
|||||