Integrated Reports Senwes Financial Review 2018 - Page 49

FINANCIAL REVIEW 22.1.1 Earnings per share is based on a profit of R310 million (2017: R166 million) attributable to ordinary Fair value as at 30 April 2017 Recurring measurements shares. Notes Carrying amount as at 30 April 2017 Total R’m Quoted prices in active markets for iden­ti­ cal instru- ments Level 1 R’m Signifi- cant other observable inputs Level 2 R’m Significant unobser­ vable inputs Level 3 R’m 7 146 146 - - 22.1.2 Normalised headline earnings per share is based on a profit of R327 million (2017: R183 million). Normalised headline earnings is HEPS according to the JSE, and adjusted with the following: Assets Grain commodities Inventory held to satisfy firm sales Investment in Suidwes Holdings Investment in Nautilus Hedge Fund Forward purchase contracts 9 75 75 - - 4.1.1 4 - - 4 5.2 25 - 25 - 17.1 128 128 - - 378 349 25 4 Total assets Liabilities 1 2 3 4 5 Impairments on investments/loans of capital nature; Restructuring costs; Profit/(loss) on foreign exchange on capital loans; Expenses not related to operational activities and which in nature is abnormal to the company; Legal/consulting fees relating to business transactions (i.e. M&A's). 22.1.3 Reconciliation between earnings and normalised headline earnings is as follows: GROUP Earnings per statement of comprehensive income Adjustments: Profit from sale of property, plant and equipment (Reversal)/impairment of property, plant and equipment and intangiable assets Gains on the disposal of investment in joint venture Commodity finance 4.2.2 2 2 - - Forward purchase contracts 17.2 165 165 - - Tax effect of adjustments Safex futures 17.2 4 4 - - 171 171 - - Headline earnings Abnormal/once-off items: Total liabilities Techniques used to determine fair value measurements categorised in level 1: Impairment of goodwill (Reversal)/impairment of investments and loans Restructuring costs All items categorised in level 1 are revalued by applying the market value as determined by Safex (South African Futures Exchange). Loss on foreign exchange on capital loans** Techniques used to determine fair value measurements categorised in level 2: Other once-off items*** Nautilus Hedge Hund's inputs can indirectly be observed through the cash balances and financial position of the fund. Normalised headline earnings Techniques used to determine fair value measurements categorised in level 3: 22. EARNINGS PER SHARE AND DIVIDENDS The following calculations are based on a weighted average number of 167 269 483 (2017: 168 884 562) shares. The earnings were calculated on profit attributable to shareholders. Legal/consulting fees Tax effect of adjustments Earnings per share (cents) Normalised headline earnings per share (cents) Earnings per share from continued operations (cents) 2018 R’m 2017 R’m 310 166 - (2) (5) - (2) - 1 - 304 164 8 17 - - * - - 13 1 - 2 - 1 (1) 1 327 183 185,3 195,5 98,3 108,4 185,3 98,3 * Total amount is less that R0,5 million. ** The company is in the process of winding up its Mauritius activities. *** This is a combination of several small/immaterial items, of which we do not expect them to reoc- cur annually and are therefore classified as once-off. 22.1.4 Diluted headline earnings per share is based on the diluted number of 180 789 308 shares. The reconciliation between weighted average number of shares and diluted number of shares is: FINANCIAL REVIEW Suidwes Holdings investment The shares of Suidwes Holdings are still traded on the OTC market, but not actively. The price at which the remaining shares will be sold in the future will more than likely be at 66% of the NAV and will be the fair value of the shares. 22.1 Earnings per share 49