| 8 | EARNINGS PER SHARE | |||||
| 2018 R’000 |
2017 R’000 |
|||||
| Headline earnings is determined as follows: | ||||||
| Continuing operations | ||||||
| Earnings attributable to owners of Adcock Ingram from total operations | 637 943 | 553 534 | ||||
| Adjusted for: | ||||||
| Profit attributable to Adcock Ingram from discontinued operations (note 2.1) | – | (39 903) | ||||
| Earnings attributable to owners of Adcock Ingram from continuing operations | 637 943 | 513 631 | ||||
| Adjusted for: | ||||||
| Impairment of intangible assets | 2 700 | – | ||||
| Profit on disposal/scrapping of property, plant and equipment | (1 968) | (194) | ||||
| Tax effect on profit on disposal of property, plant and equipment | (42) | 76 | ||||
| Adjustments relating to equity accounted joint ventures | ||||||
| Impairment of goodwill | 5 312 | – | ||||
| Loss on disposal of long term receivable | 828 | – | ||||
| (Profit)/Loss on disposal of property, plant and equipment | (24) | 199 | ||||
| Headline earnings from continuing operations | 644 749 | 513 712 | ||||
| Discontinued operations | ||||||
| Profit attributable to owners of Adcock Ingram from discontinued operations | 39 903 | |||||
| Adjusted for: | ||||||
| Profit on sale of discontinued operations (note 2.1) | (34 758) | |||||
| Loss on disposal/scrapping of property, plant and equipment | 975 | |||||
| Headline earnings from discontinued operations | 6 120 | |||||
| Headline earnings from total operations | 644 749 | 519 832 |
| Number of shares | ||||||
| 2018 | 2017 | |||||
| Reconciliation of diluted weighted average number of shares: | ||||||
| Weighted average number of ordinary shares in issue: | ||||||
| – Issued shares at the beginning of the year | 175 748 048 | 175 748 048 | ||||
| – Effect of ordinary treasury shares held within the Group | (9 455 491) | (9 453 755) | ||||
| Weighted average number of ordinary shares outstanding | 166 292 557 | 166 294 293 | ||||
| Potential dilutive effect of outstanding share options | 2 681 | 641 | ||||
| Diluted weighted average number of shares outstanding | 166 295 238 | 166 294 934 | ||||
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. |