NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 8

    2016 
R’000 		   2015 
R’000 		  
8. EARNINGS PER SHARE        
  Headline earnings is determined as follows:        
  Continuing operations        
  Earnings attributable to owners of Adcock Ingram from total operations 168 801     197 932    
   Adjusted for:             
   Loss attributable to owners of Adcock Ingram from discontinued operations (note 2.1) 203 403     146 868    
   Earnings attributable to owners of Adcock Ingram from continuing operations  372 204     344 800    
   Adjusted for:             
   Impairment of intangible assets  3 149     –    
   Loss/(profit) on disposal/scrapping of property, plant and equipment  888     (1 244)   
   Tax effect on loss/(profit) on disposal of property, plant and equipment  (23)    (227)   
   Profit on disposal of business (note 1.1) –     (8 260)   
   Adjustments relating to equity accounted joint ventures             
   – Loss on disposal of property, plant and equipment  211     56    
   – Tax effect on loss on disposal of property, plant and equipment  –     (23)   
   – Loss on disposal of long-term receivable  –     328    
   – Tax effect on loss on disposal of long-term receivable  –     51    
   Headline earnings from continuing operations  376 429     335 481    
   Discontinued operations             
   Loss attributable to owners of Adcock Ingram from discontinued operations  (203 403)    (146 868)   
   Adjusted for:             
   Impairment of held-for sale assets (note 2.1) 207 971     –    
   Impairment of property, plant and equipment  –     7 390    
   Share of non-controlling interest in the impairment of property, plant and equipment  –     (1 819)   
   Impairment of intangible assets  –     74 432    
   Profit on sale of intangible asset  (320)    –    
   Loss on disposal/scrapping of property, plant and equipment  70     1 735    
   Headline earnings/(loss) from discontinued operations  4 318     (65 130)  

    Number of shares  
  Reconciliation of diluted weighted average number of shares:        
  Weighted average number of ordinary shares in issue:        
  – Issued shares at the beginning of the year 175 741 348     175 644 748    
   – Effect of ordinary shares issued during the year  5 528     45 744    
   – Effect of ordinary treasury shares held within the Group  (9 262 130)    (6 856 163)   
   Weighted average number of ordinary shares outstanding  166 484 746     168 834 329    
   Potential dilutive effect of outstanding share options  –     6 700    
   Diluted weighted average number of shares outstanding  166 484 746     168 841 029   
 

Basic earnings per share is derived by dividing earnings attributable from continuing operations to owners of Adcock Ingram for the year by the weighted average number of shares in issue.

Diluted earnings per share is derived by dividing earnings attributable from continuing operations to owners of Adcock Ingram for the year by the diluted weighted average number of shares in issue. Diluted earnings per share reflect the potential dilution that could occur after taking into account all of the Group’s outstanding options which are potentially exercisable and the effects of all dilutive potential shares resulting from the empowerment share transaction are accounted for.

Headline earnings per share is derived by dividing earnings attributable from continuing operations to owners of Adcock Ingram for the year, after appropriate adjustments are made, by the weighted average number of shares in issue.

      2016 
Cents 		   2016 
Cents 		  
  8.1 CONTINUING OPERATIONS             
      Earnings             
      Basic earnings per share  223.6     204.2    
      Diluted basic earnings per share  223.6     204.2    
      Headline earnings             
      Headline earnings per share  226.1     198.7    
      Diluted headline earnings per share  226.1     198.7    
   8.2  DISCONTINUED OPERATIONS             
      Loss             
      Basic loss per share  (122.2)    (87.0)   
      Diluted basic loss per share  (122.2)    (87.0)   
      Headline earnings             
      Headline earnings/(loss) per share  2.6     (38.6)   
      Diluted headline earnings/(loss) per share  2.6     (38.6)   
   8.3  TOTAL OPERATIONS             
      Earnings             
      Basic earnings per share  101.4     117.2    
      Diluted basic earnings per share  101.4     117.2    
      Headline earnings             
      Headline earnings per share  228.7     160.1    
      Diluted headline earnings per share  228.7     160.1    
   8.4  DISTRIBUTION PER SHARE             
      Interim  50.0     –    
      Final (1)  54.0     81.0    
      (1) Declared subsequent to 30 June and has been presented for information purposes only. No liability regarding the final distribution has thus been recognised at 30 June.         

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS – NOTE 8