Notes to the Group financial statements

for the year ended 30 June

  R million   2014   2013  
9.   EARNINGS PER SHARE      
  Profit attributable to ordinary shareholders   518   697  
  Headline earnings adjustments   30   –  
  Net profit on disposal of property, plant and equipment   (9)  –  
  Impairment of Maslow assets   39   –  
  Tax relief on the above items   (15)  –  
  Minorities’ interests in the above items   (3)  –  
  Headline earnings   530   697  
  Adjusted headline earnings adjustments   192   12  
  Pre-opening expenses   36   37  
  Settlement of BEE shareholder options   16   –  
  Pre-opening Maslow lease rentals   –   24  
  Employee benefits   –   (15) 
  Restructure costs   165   –  
  Insurance captive trust distribution   (25)  –  
  Other   13   4  
  Foreign exchange profits on intercompany loans   (13)  (38) 
 
Tax relief on the above items  

(44) 

(1) 
  Minorities’ interests in the above items   (18)  (2) 
  Reversal of Employee Share Trusts’ consolidation   23   24  
  Adjusted headline earnings   683   730  
 

Number of shares for diluted EPS calculation (000’s) 

   
  Weighted average number of shares in issue   93 301   92 589  
  Adjustment for dilutive share awards   417   521  
  Diluted weighted average number of shares in issue   93 718   93 110  
 

Number of shares for diluted adjusted HEPS calculation (000’s) 

   
  Weighted average number of shares in issue   93 301   92 589  
  Weighted deemed treasury shares   1 294   1 085  
  Weighted treasury shares held by Employee Share Trusts   9 317   9 317  
  Adjusted weighted average number of shares in issue   103 912   102 991  
  Adjustment for dilutive share awards   417   521  
  Diluted adjusted weighted average number of shares in issue   104 329   103 512  
 

Earnings per share (cents) 

   
  Basic   555   753  
  Headline   568   753  
  Adjusted headline   657   709  
 

Diluted earnings per share (cents) 

   
  Basic   553   749  
  Headline   566   749  
  Adjusted headline   655   705  
 

Earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares in issue.  
Adjusted headline earnings include adjustments made for certain items of income or expense. These adjustments include pre-opening expenses and material items considered to be outside the normal operating activities of the Group and/or of a non-recurring nature.  
For the diluted earnings per share calculation the weighted average number of ordinary shares in issue is adjusted to take account of potential dilutive share awards granted to employees. The number of shares taken into account is determined by taking the number of shares that could have been acquired at fair value based on the monetary value of the subscription rights attached to the outstanding share options and awards. This calculation is done to determine the ‘unpurchased’ shares to be added to the ordinary shares outstanding for the purpose of computing the dilution.