Continuing and discontinued operations
FOR THE YEAR ENDED 30 JUNE 2015
As described on page 8 the Group plans to dispose of its Insurance business. The Group expects that the fair value less cost to sell the business will be higher than the aggregate carrying amount of the related assets and liabilities. Therefore, no impairment loss was recognised either on the reclassification of the assets and liabilities as held for sale or at 30 June 2015.
The results of the Insurance businesses are presented in the statement of profit or loss as discontinued operations. The comparative profit or loss has been re-presented accordingly. The assets and related liabilities of the Insurance business has been reclassified to ‘Assets classified as held for sale’ and ‘Liabilities directly associated with assets classified as held for sale’ respectively on the statement of financial position.
The following table shows the combined results of the continuing and discontinued operations after eliminating inter-group transactions.
| % change |
Total operations 2015 Rm |
Continuing operations 2015 Rm |
Discontinued operations 2015 Rm |
Total operations 2014 Rm |
Continuing operations 2014 Rm |
* |
Discontinued operations 2014 Rm |
||||||||
| Revenue | 7 | 110 487 | 107 453 | 3 034 | 103 567 | 100 662 | 2 905 | ||||||||
| Net operating expenses | (101 732) | (99 290) | (2 442) | (95 091) | (92 667) | (2 424) | |||||||||
| Profit from operations before depreciation and recoupments | 8 755 | 8 163 | 592 | 8 476 | 7 995 | 481 | |||||||||
| Depreciation, amortisation, impairments and recoupments | (2 520) | (2 492) | (28) | (2 291) | (2 264) | (27) | |||||||||
| Operating profit | 1 | 6 235 | 5 671 | 564 | 6 185 | 5 731 | 454 | ||||||||
| Recoupments from sale of properties, net of impairments | 29 | 29 | 113 | 110 | 3 | ||||||||||
| Amortisation of intangible assets arising on business combinations | (415) | (415) | (336) | (336) | |||||||||||
| Other non-operating items | (88) | (80) | (8) | (155) | (149) | (6) | |||||||||
| Profit before net finance costs | (1) | 5 761 | 5 205 | 556 | 5 807 | 5 356 | 451 | ||||||||
| Net finance costs | 29 | (1 194) | (1 194) | (926) | (926) | ||||||||||
| Profit before share of result of associates and joint ventures | 4 567 | 4 011 | 556 | 4 881 | 4 430 | 451 | |||||||||
| Share of result of associates and joint ventures | 32 | 33 | (1) | 76 | 78 | (2) | |||||||||
| Profit before tax | (7) | 4 599 | 4 044 | 555 | 4 957 | 4 508 | 449 | ||||||||
| Income tax expense | (1 213) | (1 035) | (178) | (1 330) | (1 171) | (159) | |||||||||
Net profit for the year |
(7) | 3 386 | 3 009 | 377 | 3 627 | 3 337 | 290 | ||||||||
| Net profit attributable to: | |||||||||||||||
| Owners of Imperial | (7) | 3 054 | 2 735 | 319 | 3 272 | 3 025 | 247 | ||||||||
| Non-controlling interests | (6) | 332 | 274 | 58 | 355 | 312 | 43 | ||||||||
| 3 386 | 3 009 | 377 | 3 627 | 3 337 | 290 | ||||||||||
| Earnings per share (cents) | |||||||||||||||
| – Basic | (6) | 1 582 | 1 416 | 166 | 1 687 | 1 559 | 128 | ||||||||
| – Diluted | (6) | 1 568 | 1 406 | 162 | 1 666 | 1 542 | 124 | ||||||||
| Headline earnings per share (cents) | |||||||||||||||
| – Basic | 1 624 | 1 458 | 166 | 1 625 | 1 498 | 127 | |||||||||
| – Diluted | 1 609 | 1 446 | 163 | 1 606 | 1 482 | 124 | |||||||||
| Core earnings per share (cents) | |||||||||||||||
| – Basic | (3) | 1 754 | 1 586 | 168 | 1 815 | 1 685 | 130 | ||||||||
| – Diluted | (3) | 1 736 | 1 571 | 165 | 1 790 | 1 664 | 126 |
| * | After restating for the change in accounting policy as described in note 2.1. |
The major classes of assets and liabilities classified as held for sale at 30 June 2015 were as follows:
| 2015 Rm |
2014 Rm |
|||
| Assets | ||||
| Goodwill and intangible assets | 122 | |||
| Investment in associates and joint ventures | 17 | |||
| Property, plant and equipment | 146 | |||
| Income tax assets | 20 | |||
| Investments and other financial assets | 3 250 | |||
| Trade and other receivables | 218 | |||
| Cash resources | 845 | |||
Assets classified as held for sale |
4 618 | |||
| Liabilities | ||||
| Insurance and investment contracts | 1 361 | |||
| Income tax liabilities | 197 | |||
| Trade and other payables and provisions | 1 155 | |||
Liabilities directly associated with assets classified as held for sale |
2 713 | |||
| Investments and other financial assets consists of listed investments of R2 288 million (level 1 financial instrument) and fixed and negotiable deposits of R733 million (level 2 financial instrument) and reinsurance receivables of R229 million at amortised cost. | ||||
| The cash flows from discontinued operations were as follows: | ||||
| Cash flows from operating activities | 391 | 402 | ||
| Cash flows from investing activities | (1 103) | 1 123 | ||
| Cash flows from financing activities | (31) | (72) |