Summarised consolidated
income statement

 

 

R’000			2018  Audited			2017  Audited			%  change
Revenue			76 963 472			70 998 001			8.4
Cost of revenue			(54 716 818)			(50 342 325)			8.7
Gross profit			22 246 654			20 655 676			7.7
Operating expenses			(16 199 932)			(15 131 637)			7.1
Other income			319 558			282 122
Trading result			6 366 280			5 806 161			9.6
Income from investments			142 795			210 776
Trading profit			6 509 075			6 016 937			8.2
Share-based payment expense			(154 986)			(143 145)
Acquisition costs and customer contracts amortisation			(82 901)			(24 230)
Net capital items#			(351 977)			1 027 588
Operating profit			5 919 211			6 877 150			(13.9)
Net finance charges			(1 020 730)			(1 059 560)			(3.7)
Finance income			158 709			232 069
Finance charges			(1 179 439)			(1 291 629)
Share of profit of associates			423 729			379 231			11.7
Current year earnings			431 857			354 966			21.7
Net capital items#			(8 128)			24 265
Profit before taxation			5 322 210			6 196 821			(14.1)
Taxation			(1 436 597)			(1 328 232)			8.2
Profit for the year			3 885 613			4 868 589
Attributable to:
Shareholders of the Company			3 817 996			4 769 940			(20.0)
Non-controlling interest			67 617			98 649			(31.5)
			3 885 613			4 868 589			(20.2)
Basic earnings per share	(cents)		1 137.3			1 430.3			(20.5)
Diluted basic earnings per share	(cents)		1 132.4			1 423.4			(20.4)
Supplementary information
Normalised headline earnings per share*	(cents)		1 254.9			1 115.4			12.5
Headline earnings per share	(cents)		1 231.6			1 108.2			11.1
Diluted headline earnings per share	(cents)		1 226.3			1 102.9			11.2
Shares in issue
Total	(’000)		336 766			335 094
Weighted	(’000)		335 718			333 497
Diluted weighted	(’000)		337 161			335 098
Dividends per share	(cents)		556.0			491.0			13.2
Interim	(cents)		255.0			227.0			12.3
Final	(cents)		301.0			264.0			14.0
Headline earnings
The following adjustments to profit attributable to shareholders were taken into account in the calculation of headline earnings:
Profit attributable to shareholders of the Company			3 817 996			4 769 940			(20.0)
Impairment/(reversal) of property, plant and equipment; goodwill and intangible assets			12 840			(1 403)
Property, plant and equipment†			3 311			(1 147)
Goodwill†			15 258			–
Intangible assets†			1 115			–
Taxation effect			–			158
Non-controlling interest			(6 844)			(414)
Net loss on disposal of interests in subsidiaries and disposal and closure of businesses			155 828			50 874
Loss on disposal and closure†			188 635			65 311
Impairment of disposal groups held for sale†			39 323			–
Taxation effect			(37 407)			(14 437)
Non-controlling interest			(34 723)			–
Net loss/(gain) on disposal and remeasurement to recoverable fair value of associates			234 338			(1 080 926)
Remeasurement to recoverable fair value of associate†			248 709			(1 144 633)
Net (gain)/loss on change in shareholding in associates†			(2 981)			82 072
Taxation effect			–			(18 365)
Non-controlling interest			(11 390)			–
Net gain on disposal of property, plant and equipment and intangible assets			(24 185)			(7 114)
Property, plant and equipment†			(39 796)			(8 446)
Intangible assets†			(15 895)			(9 371)
Taxation effect			1 400			2 909
Non-controlling interest			30 106			7 794
Compensation received on loss or impairment of property plant and equipment			(70 263)			–
Compensation received†			(85 702)			–
Taxation effect			15 439			–
Gain on bargain purchase†			–			(11 374)
Non-headline items included in equity accounted earnings of associated companies			8 128			(24 265)
Headline earnings			4 134 682			3 695 732			11.9

* Normalised headline earnings per share excludes acquisition cost and amortisation of acquired customer contracts.

^# Refer to the headline earnings calculation for additional detail.

^† Items above included as capital items on summarised consolidated income statement.

Normalised headline earnings per share

Normalised headline earnings per share is a measurement used by the chief operating decision maker. The calculation of normalised headline earnings per share excludes acquisition costs and amortisation of acquired customer contracts and is based on the normalised headline profit attributable to ordinary shareholders, divided by the weighted average number of ordinary shares in issue during the year. The presentation of normalised headline earnings is not an IFRS requirement.

R’000	2018  Audited			2017  Audited
Headline earnings	4 134 682			3 695 732
Acquisition costs	50 190			24 230
Amortisation of customer contracts	32 711			–
Taxation effect	(4 522)			–
Normalised headline earnings	4 213 061			3 719 962