Determination of headline and underlying* earnings

for the six months to 31 August 2020

US$'000  Unaudited
Six months
to 31 August
2020 
   Unaudited
Six months
to 31 August
2019 
   Audited
Year ended
29 February
2020 
  
DETERMINATION OF HEADLINE EARNINGS   
Reconciliation of attributable profit to headline earnings 
Profit attributable to the equity holders of the parent  3 147     6 296     14 239    
Headline earnings adjustments  21     (1 365)    (1 789)   
   Profit on disposal of investment and discontinued operations  –     (1 466)    (1 747)   
   Loss/(profit) on disposal of property, plant and equipment  46     190     (65)   
      Tax effect  (25)    (89)    23    
   Non-controlling interests  –     –     41    
Headline earnings  3 168     4 931     12 491    
DETERMINATION OF UNDERLYING* EARNINGS 
Reconciliation of headline earnings to underlying* earnings 
Headline earnings  3 168     4 931     12 491    
Underlying* earnings adjustments  4 593     7 120     8 416    
   Unrealised foreign exchange (gains)/losses  (4 110)    4 212     1 247    
   Acquisition-related fair value adjustments  (69)    (571)    (696)   
   Restructuring costs  5 948     –     –    
   Amortisation of acquired intangible assets  4 291     5 324     11 297    
   Tax effect  (1 467)    (1 845)    (3 432)   
   Non-controlling interests  (48)    (655)    (64)   
Underlying* earnings  7 713     11 396     20 843    

The underlying* earnings measure is specific to Datatec and is not required in terms of International Financial Reporting Standards or the JSE Listings Requirements.

* Underlying earnings exclude impairments of goodwill and intangible assets, profit or loss on sale of investments and assets, amortisation of acquired intangible assets, unrealised foreign exchange movements, acquisition-related adjustments, fair value movements on acquisition-related financial instruments, restructuring costs relating to fundamental reorganisations and the taxation effect on all of the aforementioned.


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