Summarised consolidated income statement

R000s  
Year ended  
30 June  
2020  
Audited  		    
Year ended 
30 June 
2019 
Restated 
Audited 		    % 
Change 		   
Continuing operations                
Revenue   76 542 581      76 058 362     0,6    
Cost of revenue  (53 101 006)     (53 511 794)    (0,8)   
Gross profit   23 441 575      22 546 568     4,0    
Operating expenses  (18 079 797)     (16 501 399)    9,6    
Net impairment losses on financial assets  (245 401)     (54 440)       
Other income  266 807      308 395        
Income from investments  (43 482)     368 258        
Trading profit   5 339 702      6 667 382     (19,9)   
   Share-based payment expense  (202 494)     (188 840)       
   Acquisition costs and customer contracts amortisation  (345 229)     (65 858)       
   Net capital items  (1 973 149)     (787 102)       
Profit before finance charges and associate income  2 818 830      5 625 582     (49,9)   
Net finance charges  (1 429 627)     (924 585)    54,6    
   Finance income  80 253  238 152        
   Finance charges  (1 509 880)     (1 162 737)       
Share of (loss) profit of associates  (92 250)     583 198        
   Current year earnings  (87 129)   592 104        
   Net capital items  (5 121)     (8 906)       
Profit before taxation   1 296 953      5 284 195     (75,5)   
Taxation  (851 589)     (1 431 779)    (40,5)   
Profit for the year from continuing operations   445 364      3 852 416     (88,4)   
Discontinued operations                
Loss after tax from discontinued operations  (632 267)     (48 486)       
(Loss) profit for the year   (186 903)     3 803 930        
Attributable to                
   Shareholders of the Company – continuing operations  168 981      3 823 768     (95,6)   
   Shareholders of the Company – discontinued operations  (632 267)     (48 486)       
   Non-controlling interest  276 383      28 648        
  (186 903)     3 803 930        
Basic earnings per share (cents) – continuing operations  49,8      1 133,8     (95,6)   
Diluted basic earnings per share (cents) – continuing operations  49,7      1 130,7     (95,6)   
Basic earnings per share (cents) – discontinued operations  (186,4)     (14,4)       
Diluted basic earnings per share (cents) – discontinued operations  (186,1)     (14,3)     
Basic earnings per share (cents) – Group  (136,6)     1 119,4        
Diluted basic earnings per share (cents) – Group  (136,4)     1 116,4        
Supplementary Information               
Normalised headline earnings per share (cents) – continuing operations*  1 028,3      1 334,4     (22,9)   
Headline earnings per share (cents) – continuing operations  553,2      1 366,4     (59,5)   
Diluted headline earnings per share (cents) – continuing operations  552,5      1 362,7     (59,5)   
Headline earnings per share (cents) – discontinued operations  (159,2)     (14,4)       
Diluted headline earnings per share (cents) – discontinued operations  (159,0)     (14,3)       
Normalised headline earnings per share (cents) – Group*  869,1      1 320,0     (34,2)   
Headline earnings per share (cents) – Group  394,0      1 352,1     (70,9)   
Diluted headline earnings per share (cents) – Group  393,5      1 348,4     (70,8)   
Shares in issue                
   Total ('000) 339 770      338 382        
   Weighted ('000) 339 264      337 245        
   Diluted weighted ('000) 339 728      338 164        
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 – continuing operations  168 981      3 823 768     (95,6)   
Impairment of property, plant and equipment, goodwill and intangible assets  990 164      10 299    
   Property, plant and equipment#  222 463      9 580        
   Right-of-use assets#  145 144      –        
   Goodwill#  496 850      –        
   Intangible assets#  322 124      1 648        
   Taxation effect  (141 865)     (196)       
   Non-controlling interest  (54 552)     (733)       
Net loss on disposal of interests in subsidiaries and disposal and closure of businesses  247 181      175 030        
   Loss on disposal and closure#  278 944      202 250        
   Taxation effect  (18 482)     (23 947)       
   Non-controlling interest  (13 281)     (3 273)       
Net loss on disposal and impairment of associates  485 711      622 900        
   Impairment of associates#  523 279      623 941        
   Net loss (gain) on change in shareholding in associates#  693      (1 041)       
   Taxation effect  (38 261)     –        
Net gain on disposal of property, plant and equipment and intangible assets  (8 963)     (19 016)       
   Property, plant and equipment#  29 981      (28 192)       
   Intangible assets#  (30 681)     (4 249)       
   Taxation effect  (8 263)     11 554        
Non-controlling interest  –      1 871        
Compensation received on loss or impairment of property plant and equipment  (11 267)     (13 630)       
   Compensation received#  (15 648)     (16 835)       
   Taxation effect  4 381      3 205        
Non-headline items included in equity accounted earnings of associated companies  5 121      8 906        
Headline earnings – continuing operations  1 876 928      4 608 257     (59,3)   
Loss attributable to shareholders of the Company – discontinued operations  (632 267)     (48 486)       
Impairment of property, plant and equipment, right-of-use assets, goodwill and intangible assets – discontinued operations  92 094      –        
   Property, plant and equipment  48 927      –        
   Right-of-use assets  52 790      –        
   Intangible assets  26 583      –        
   Taxation effect  (36 206)     –        
Headline earnings – Group  1 336 755      4 559 771     (70,7)   
* Refer normalised headline earnings note for detailed definition. 
# Items above included as capital items on summarised consolidated income statement. The R1 973 million net capital items disclosed above includes R1 148 million net capital items directly attributable to the COVID-19 pandemic and associated lockdown.

Normalised headline earnings per share

Normalised headline earnings per share is a measurement used by the chief operating decision-makers, the Group executive directors. 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 Group's non-cash share of Comair's SAA travel agent incentive scheme settlement and COVID-19 pandemic expenses relating to abnormal receivables provisioning, inventory obsolescence, restructuring costs and COVID-19 compliance regulatory costs have been included for the first time as a change in policy in the calculation of normalised headline earnings in the period. The presentation of normalised headline earnings is not an IFRS requirement.

Headline earnings – continuing operations  1 876 928    4 608 257        
   Acquisition costs  178 179    22 940        
   Amortisation of acquired customer contracts  70 120    42 918        
   Fair value uplift of Adcock Ingram inventory  96 930    –        
   Non-cash share of Comair's SAA travel agent incentive scheme settlement  122 191    (167 950)       
   COVID-19 pandemic expenses – refer significant accounting judgements  1 200 644    –        
   COVID-19 pandemic impact on MIAL investment- refer significant accounting judgement  351 442    –        
   Taxation effect  (333 513)   (5 883)       
   Non-controlling interest  (74 193)   –        
Normalised headline earnings – continuing operations  3 488 728    4 500 282     (22,5)   
Normalised headline earnings – discontinued operations  (540 173)   (48 486)       
Normalised headline earnings – Group  2 948 555    4 451 796     (33,8)