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Amortisation of intangibles remained virtually unchanged at R92 million (prior year R95 million). Aspen considers the intellectual property on its balance sheet to have a finite useful life and thus be subject to amortisation. This is contrary to the more aggressive approach taken by some of Aspen’s competitors which classify most, if not all intellectual property as having indefinite period lives and by so doing avoid a charge for amortisation. Investment income and net finance costs should be considered in aggregate as these two disclosure categories together reflect the overall cost of Aspen’s external funding. This cost reduced from R62 million to R41 million, primarily as a consequence of the reversal of fair value losses on financial instruments in the prior year of R7,7 million into fair value gains of R14,8 million in the current year. South African business leads growth Normalised earnings per share increased from 137,6 cents to 182,1 cents, a growth of 32% which was contributed as follows: % South African pharmaceutical division

16

South African consumer division

9

Australasia/Asia businesses

3

Funding costs

3

Amortisation

1

Effective tax rate

1

Dilution from shares issued

(1)

Growth in normalised earnings per share

32

Normalised earnings showed expected seasonality with the weighting towards the second half of the year which delivered 53% of the year’s normalised earnings. Yearon-year growth in normalised earnings however slowed to 25% in the second half of the year from 45% in the first half of the year. Exceptional performances in the first half of the year by FCC and Aspen Nutritionals provided additional impetus to growth in the six months to 31 December 2005.

19

Aspen Annual Report 2006

Profile for Aspen Holdings

Aspen Annual Report 2006  

Aspen Annual Report 2006