Notes to the annual financial statements

FOR THE YEAR ENDED 31 MARCH 2009

  Note 2 »
1. earnings    
    2009 2008
    Gross   Net   Gross   Net  
    R million   R million   R million   R million  
  Headline earnings reconciliation    
   
   
   
  Continuing operations    
   
   
   
  Net profit for the year attributable to equity holders    
2 827      
6 508  
  Plus/(minus):    
   
   
   
  – Net impairment of investments, assets and goodwill 442   442   (15)  (8) 
  – Profit on sale and restructuring of investments (24)  (21)  (1 665)  (1 627) 
  – Net (surplus)/loss on disposal of property, plant and    
   
   
   
     equipment  3   2   (114)  (138) 
  – Non-headline earnings items included in equity accounted    
   
   
   
     earnings of associated companies and joint ventures   (117)  (82)  (208)  (184) 
  Headline earnings from continuing operations    
3 168      
4 551  
  Discontinued operations    
   
   
   
  Net profit for the year attributable to equity holders    
42 503      
3 385  
  Plus/(minus):     
   
   
   
  – Profit on the distribution of investments (40 805)  (40 805)  –   –  
  – Non-headline earnings items included in equity    
   
   
   
     accounted earnings of associated companies (223)  (206)  86   55  
  Headline earnings from discontinued operations    
1 492      
3 440  
  Total headline earnings from continuing and    
   
   
   
     discontinued operations    
4 660      
7 991  
       
   
   
   
    2009   2008  
    Cents   Cents  
  Earnings per share    
   
  Headline earnings per share     
   
  – Basic   987.7   1 692.8  
     Continuing operations  671.5   964.1  
     Discontinued operations   316.2   728.7  
       
   
  – Diluted 954.8   1 649.0  
     Continuing operations  659.2   928.3  
     Discontinued operations   295.6   720.7  
  Earnings per share    
   
  – Basic   9 607.9   2 095.7  
     Continuing operations  599.2   1 378.7  
     Discontinued operations   9 008.7   717.0  
  – Diluted 9 570.4   2 048.9  
     Continuing operations  584.6   1 339.5  
     Discontinued operations   8 985.8   709.4  
       
  Earnings per share
In determining earnings per share and headline earnings per share the weighted number of shares in issue, being 471 798 001
(2008: 472 052 993), 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 offers accepted by participants in the Remgro Share Scheme and the Remgro Equity Settled Share Appreciation Right Scheme, but not yet delivered.

The delivery of scheme shares 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 115 156 (2008: 1 908 925) 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 from continuing operations, R57 million (2008: R151 million) and R68 million (2008: R159 million) were offset against headline earnings and earnings respectively to account for the potential diluted effect. R97 million (2008: R24 million) and R98 million (2008: R23 million) were offset against headline earnings and earnings respectively, to account for the potential diluted effect on earnings from discontinued operations.