25. EARNINGS PER SHARE AND DIVIDENDS
25.1 EARNINGS PER SHARE
The following calculations are based on a weighted average number of 115 844 762 (2019: 114 303 643) shares. The earnings
were calculated on profit attributable to shareholders.
25.1.1 Earnings per share is based on a profit of R164 million (2019: R154 million) attributable to ordinary shares.
25.1.2 Normalised headline earnings per share is based on a profit of R130 million (2019: R162 million). Normalised headline
earnings is HEPS as defined by the JSE, and adjusted with the following:
1. Impairments/(reversals) on investments/loans of a 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;
5. Legal/consulting fees relating to business transactions (i.e. M&As).
25.1.3 Reconciliation between earnings and normalised headline earnings is as follows:
GROUP
2020
R’m
2019
R’m
Earnings per statement of comprehensive income 164 154
Adjustments:
Profit from sale of property, plant and equipment (5) (3)
Impairment of property, plant and equipment and intangible
assets
1 -
Gains on the disposal of investment in joint venture (1) -
Impairment of goodwill 7 3
Gain on bargain purchase of subsidiary (32) -
Tax effect of adjustments 1 - *
Headline earnings 135 154
Abnormal/once-off items:
Reversal of impairment on investments and loans 1 (7) -
(Profit)/loss on foreign exchange on capital loans 2 (2) 1
Legal/consultation fees 4 3 9
Other once-off items 3 1 -
Tax effect of adjustments - (2)
Normalised headline earnings 130 162
Earnings per share (cents) 141,6 134,7
Normalised headline earnings per share (cents) 112,2 141,7
Earnings per share from continued operations (cents) 141,6 134,7
*
Total amount is less than R0,5 million.
1
This relates to the impairment reversal of the Hinterland Holdings (Pty) Ltd investment at group level and impairments
on the loans receivable from Thobo Trust and Senwes Agrowth (Pty) Ltd.
2
The group is in the process of winding up its Mauritius activities.
3
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.
4
Legal/consultation fees mainly consist of consultation fees incurred in optimising certain operating activities and for
merger and acquisition transactions.
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SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06