AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
Techniques used to determine fair value measurements categorised in level 1 :
All items categorised in level 1 are revalued by applying the market value as determined by Safex ( South African Futures Exchange ), however the investment in Senwes Ltd is revalued based on the traded share prices as indicated on ZARX . Techniques used to determine fair value measurements categorised in level 2 : RealFin Collective Investment Scheme`s inputs can indirectly be observed through the cash balances and financial position of the fund .
Techniques used to determine fair value measurements categorised in level 3 : Suidwes Holdings investment During the current year the investment has been classified to an investment in subsidiary at company level . Refer to note 6.2 .
Investments held by Thobo Trust The shares held by Thobo Trust in Hinterland Fuels ( Pty ) Ltd and OTKV ( Pty ) Ltd . These companies are both private companies and discounted cash flow calculations were used to determine the fair values . The investment in Hinterland Fuels ( Pty ) Ltd is eliminated at group level in the current year as Hinterland Holdings ( Pty ) Ltd became a fully owned subsidiary of Senwes Ltd , refer to note 6.2 .
25 . EARNINGS PER SHARE AND DIVIDENDS 25.1 Earnings per share
The following calculations are based on a weighted average number of 119 781 193 ( 2020 : 115 844 762 ) shares . The earnings were calculated on profit attributable to shareholders .
25.1.1 Earnings per share is based on a profit of R298 million ( 2020 : R164 million ) attributable to ordinary shares .
25.1.2 Normalised headline earnings per share is based on a profit of R222 million ( 2020 : R130 million ). Normalised headline earnings is HEPS as defined by the JSE , and adjusted with the following :
1 Impairments /( reversals ) on investments / loans of capital nature ; 2 Restructuring costs ; 3 Profit /( loss ) on foreign exchange on capital loans ; 4 Expenses and cost savings not related to operational activities and which in nature are abnormal to the company ; and 5 Legal / consulting fees relating to business transactions ( i . e . M & A ' s ).
25.1.3 Reconciliation between earnings and normalised headline earnings is as follows :
Earnings per statement of comprehensive income 298 164 Adjustments : Profit from sale of property , plant and equipment ( 27 ) ( 5 ) Impairment of property , plant and equipment and intangible assets 6 1 Gains on the disposal of investment in joint venture ( 20 ) ( 1 ) Impairment of goodwill 21 7 Gain on bargain purchase of subsidiary ( 89 ) ( 32 ) Tax effect of adjustments 5 1 Headline Earnings 194 135 Abnormal / once-off items : Reversal of impairment on investments * 14 ( 7 ) Reversal of impairment on loan of a capital nature ( 21 ) - Restructuring costs 8 - Profit on foreign exchange on capital loans ** - ( 2 ) Legal / consultation fees *** 11 3 Other once-off items **** 27 1 Tax effect of adjustments ( 11 ) - Normalised headline earnings 222 130 Earnings per share ( cents ) 248.8 141.6 Normalised headline earnings per share ( cents ) 185.3 112.2 Earnings per share from continued operations ( cents ) 248.8 141.6 * This relates to the impairment of the Certisure Group investment at group level ( 2020 : Relates to the impairment reversal of the Hinterland Holdings ( Pty ) Ltd investment at group level ).
GROUP
** The company is in the process of winding up its Mauritius activities . The loan to Senwes Mauritius Ltd was settled during the year . *** Legal / consulting fees mainly consist of these fees incurred in optimising certain operating activities and for merger and acquisition transactions . **** This relates to the cost impact of the Covid-19 pandemic , which we do not expect to reoccur annually and is therefore classified as once-off .
2021 R ' m
2020 R ' m
56 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06