Summarised consolidated income statement

for the

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  Year ended    
30 June    
Restated **
 
R000s 2021 
Audited 
2020    
Audited    

Change 
Continuing operations      
Revenue 88 314 806  76 542 581     15.4 
  Non-interest revenue 87 881 064  75 953 538      
  Interest revenue 433 742  589 043      
Cost of revenue (61 140 027) (53 101 006)    15.1 
Gross profit 27 174 779  23 441 575     15.9 
Operating expenses (19 278 934) (18 079 798)    6.6 
Net impairment losses on financial assets (252 164) (245 401)    2.8 
Other income 273 347  266 807     2.5 
Income from investments (26 103) (43 482)     40.0 
Trading profit 7 890 925  5 339 701     47.8 
Share-based payment expense (246 096) (202 493)     
Acquisition costs and customer contracts amortisation (305 025) (345 229)     
Net capital items (179 663) (1 973 149)     
Profit before finance charges and associate income 7 160 141  2 818 830     154.0 
Net finance charges (1 470 534) (1 429 627)    2.9 
  Finance income 57 367  80 253      
  Finance charges (1 527 901) (1 509 880)     
Share of profit (loss) of associates 100 095  (92 250)    208.5 
  Current year earnings 100 208  (87 129)     
  Net capital items (113) (5 121)     
Profit before taxation 5 789 702  1 296 953     346.4 
Taxation (1 670 774) (851 589)    96.2 
Profit for the year from continuing operations 4 118 928  445 364     824.8 
Discontinued operations      
Profit (loss) after tax from discontinued operations 3 789  (632 267)     
Profit (loss) for the year 4 122 717  (186 903)     
Attributable to      
Shareholders of the Company – continuing operations 3 840 933  168 981     2 173.0 
Shareholders of the Company – discontinued operations 3 789  (632 267)    (100.6)
Non-controlling interest 277 995  276 383     0.6 
  4 122 717  (186 903)     
Basic earnings per share (cents) – continuing operations 1 130.2  49.8     2 169.5 
Diluted basic earnings per share (cents) – continuing operations 1 129.4  49.7     2 172.4 
Basic earnings per share (cents) – discontinued operations 1.1  (186.4)     
Diluted basic earnings per share (cents) – discontinued operations 1.1  (186.1)     
Basic earnings per share (cents) – Group 1 131.3  (136.6)     
Diluted basic earnings per share (cents) – Group 1 130.5  (136.4)     
Supplementary information      
Normalised headline earnings per share (cents) – continuing operations* 1 292.0  1 028.3     25.6 
Headline earnings per share (cents) – continuing operations 1 183.3  553.2     113.9 
Diluted headline earnings per share (cents) – continuing operations 1 182.4  552.5     114.0 
Headline earnings per share (cents) – discontinued operations 15.2  (159.2)     
Diluted headline earnings per share (cents) – discontinued operations 15.2  (159.0)     
Normalised headline earnings per share (cents) – Group* 1 307.2  869.1     50.4 
Headline earnings per share (cents) – Group 1 198.4  394.0       204.2 
Diluted headline earnings per share (cents) – Group 1 197.5  393.5     204.3 
Shares in issue      
Total (’000) 339 888  339 770      
Weighted (’000) 339 847  339 264      
Diluted weighted (’000) 340 096  339 728      
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 3 840 933  168 981  2 173.0 
Impairment of property, plant and equipment, right-of-use assets, goodwill and intangible assets 71 872  990 164   
  Property, plant and equipment # 48 976  222 463   
  Right-of-use assets# (12 950) 145 144   
  Goodwill# –  496 850   
  Intangible assets# 44 395  322 124   
  Taxation effect (8 549) (141 865)  
  Non-controlling interest –  (54 552)  
Net loss on disposal of interests in subsidiaries and disposal and closure of businesses 62 821  247 181   
  Loss on disposal and closure # 64 722  278 944   
  Taxation effect (1 901) (18 482)  
  Non-controlling interest –  (13 281)  
Net loss on disposal and impairment of associates  77 448  485 711   
  Impairment of associates# 77 448  523 279   
  Net loss on change in shareholding in associates# –  693   
  Taxation effect –  (38 261)  
Net gain on disposal of property, plant and equipment and intangible assets (2 270) (8 963)  
  Property, plant and equipment# (8 503) 29 981   
  Intangible assets# 6 259  (30 681)  
  Taxation effect 375  (8 263)  
  Non-controlling interest (401) –   
Compensation received on loss or impairment of property plant and equipment (29 667) (11 267)  
  Compensation received# (40 684) (15 648)  
  Taxation effect 11 017  4 381   
Non-headline items included in equity accounted earnings of associated companies 113  5 121   
Headline earnings – continuing operations 4 021 250  1 876 928  114.2 
Profit (loss) attributable to shareholders of the Company – discontinued operations 3 789  (632 267)  
Loss on disposal of discontinued operations 85 224  –   
Impairment of property, plant and equipment, right-of-use assets, goodwill and intangible assets (37 478) 92 094   
  Property, plant and equipment (28 782) 48 927   
  Right-of-use assets –  52 790   
  Intangible assets (23 271) 26 583   
  Taxation effect 14 575  (36 206)  
Headline earnings – Group 4 072 785  1 336 755   
# Items above included as capital items on summarised consolidated income statement.
* Refer normalised headline earnings note for detailed definition.
** Refer to restatement note for further details.

Normalised headline earnings per share

Normalised headline earnings per share is a measurement used by the chief operating decision-maker, Mpumi Madisa and the executive board. The calculation of normalised headline earnings per share excludes acquisition costs, amortisation of acquired customer contracts, the Group’s non-cash share of Comair’s SAA travel agent incentive scheme settlement (prior year) and COVID-19 pandemic expenses relating to abnormal receivables provisioning, inventory obsolescence, restructuring costs and COVID-19 compliance regulatory costs and is based on the normalised headline earnings 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.

  Year ended
30 June
R000s 2021 
Audited 
2020 
Audited 
Headline earnings – continuing operations 4 021 250  1 876 928 
Acquisition costs 33 509  178 179 
Amortisation of acquired customer contracts 271 516  70 120 
Fair value uplift of Adcock Ingram inventory –  96 930 
Non-cash share of Comair’s SAA travel agent incentive scheme settlement –  122 191 
COVID-19 pandemic expenses (refer significant accounting judgements) 182 466  1 200 644 
COVID-19 pandemic impact on MIAL investment (refer significant accounting judgements) –  351 442 
Taxation effect (101 433) (333 513)
Non-controlling interest (16 474) (74 193)
  Normalised headline earnings – continuing operations 4 390 834  3 488 728 
  Normalised headline earnings – discontinued operations 51 535  (540 173)
  Normalised headline earnings – Group 4 442 369  2 948  55