Notes to the annual financial statements

for the year ended 30 September

 
 
        Group
      Note   2010  
Rm  
  2009  
Rm  
9.   HEADLINE EARNINGS AND NORMALISED HEADLINE EARNINGS          
  HEADLINE EARNINGS PER SHARE (CENTS)  9.1   505,5     651,6  
  DILUTED HEADLINE EARNINGS PER SHARE (CENTS)  9.1   501,1     646,2  
  NORMALISED HEADLINE EARNINGS PER SHARE (CENTS)  9.2   515,7     499,5  
  NORMALISED DILUTED HEADLINE EARNINGS PER SHARE (CENTS)  9.2   511,1     495,3  
  9.1   Headline earnings          
    Profit attributable to equity holders of Reunert – IAS 33 Basic Earnings     899,4     1 164,5  
    Headline earnings are determined by eliminating the effect of the following items in attributable earnings:     4,0     (1,4) 
    Net surplus on dilution in and disposal of business     (0,2)    (1,3) 
    Net loss on disposal of property, plant and equipment and intangible assets     0,1     3,9  
    Impairment charge recognised for property, plant and equipment     5,6     —  
    Taxation     (1,6)    (3,9) 
    Non-controlling interest     0,1     (0,1) 
    Headline earnings attributable to equity holders of Reunert     903,4     1 163,1  
  9.2   Normalised headline earnings          
    Headline earnings attributable to equity holders of Reunert (basic and diluted) (refer to note 9.1)    903,4     1 163,1  
    Normalised headline earnings are determined by eliminating the effect of the following items in attributable headline earnings:     27,0     (261,5) 
    BEE transaction expense     34,0     —  
    IFRS 3 profit on acquisition of Nashua Communications (refer to note 29   (8,2)    —  
    Rate portion of revaluation of interest rate swap derivative assets and liabilities     11,2     —  
    Gain arising on fair value of option in terms of agreement with NSN (refer to note 14        (299,2) 
    Taxation     (3,1)    37,4  
    BEE share of headline and normalised headline earnings adjustments     (6,9)    0,3  
    Net economic interest in profit attributable to all BEE partners (refer to note 9.3)    (8,8)    (10,0) 
    Normalised headline earnings attributable to equity holders of Reunert     921,6     891,6  
  9.3   Black economic empowerment transactions          
    Interest in profit that is economically attributable to bee partners          
    With effect from 1 October 2009 the group disposed of 20% of its interest in Reutech Limited to an accredited BEE partner for R100,0 million.          
    This transaction gave rise to an expense of R34,0 million in terms of IFRS 2 Share-based Payment.          
    Certain BEE transactions involving the disposal of equity interests have not been recognised as non-controlling interests because the significant risks and rewards of ownership of the equity have not passed to the BEE partners under IFRS.          
    Accordingly, their equity interests in subsidiaries have not been recognised in the group income statement and balance sheet.          
    The effect of this has been to not recognise the following:          
    Net economic interest in current year profit attributable to all BEE partners (refer to note 9.2)    8,8     10,0  
    Balance sheet interest that is economically attributable to all BEE partners     154,1     115,0