108 / 220
/
106
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
1.
Results of operations
continued
1.4 Finance costs and finance income
Finance costs/income are recognised in profit and loss using the effective interest rate method as the instruments to
which this relates are measured at amortised cost.
2017
R’000
2016
R’000
Finance costs
– Bank
29
61
– Loans and facilities
97 474
33 851
– Unwinding of contingent purchase price
4 621
9 712
– Other
3 394
4 583
– Discounting of payables
197 509
165 903
303 027
214 110
Finance income
– Bank
(23 557)
(34 002)
– Loans
(22 444)
(4 336)
– Related-party loans (refer to note 8)
(31 237)
(25 351)
– Other
(1 887)
(577)
– Discounting of receivables
(163 069)
(129 633)
(242 194)
(193 899)
Net finance costs
60 833
20 211
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
.