25. Equity continued 25.3 Financial ratios
2023 $M
2022 $M
Basic and diluted earnings per share
Net profit from continuing operations attributable to owners of the parent Net profit from discontinued operation attributable to owners of the parent Net profit attributable to owners of the parent Weighted average ordinary shares outstanding during the period (number of shares) Earnings per share from continuing operations Earnings per share from discontinued operations
111.1
100.5
1,603.2 1,714.3
58.4
158.9
999,973,657 11.1 cents 160.3 cents 171.4 cents
999,946,417
10.1 cents 5.8 cents 15.9 cents
Total earnings per share
2023 $M
2022 $M
Net tangible assets per share
3,942.8 (1,216.8) 2,726.0
Net assets attributable to owners of the parent
2,414.0 (1,266.5) 1,147.5
Less total intangible assets Total net tangible assets
999,973,657 272.6 cents
Ordinary shares outstanding (number of shares)
999,973,657 114.8 cents
Net tangible assets per share
Economic net debt to economic net debt plus adjusted equity ratio (“gearing ratio”)
2023 $M
2022 $M
2,405.1
Face value of borrowings
3,291.6
65.0
Lease liabilities
27.7
(537.0)
Less cash and cash equivalents and deposits
(22.5)
Economic net debt
1,933.1 3,958.0
3,296.8 2,430.1
Total equity
(55.7)
Adjusted for hedge reserves
(58.7)
Adjusted equity
3,902.3 5,835.4
2,371.4 5,668.2
Economic net debt plus adjusted equity
Gearing ratio
33.1%
58.2%
Economic net debt
Economic net debt is defined as ‘face value of borrowings and lease liabilities, less cash and cash equivalents and deposits’.
25.4 Reserves Hedge reserves
Hedge reserves comprise the cash flow hedge reserve and cost of hedging. The cash flow hedge reserve records the effective portion of changes in the fair value of derivatives that are designated as cash flow hedges. The gain or loss relating to the ineffective portion is recorded in profit or loss within interest costs (net). During the year, $7.7 million (2022: $19.1 million) was transferred from the cash flow hedge reserve to interest expense. Cost of hedging records the change in the fair value of the cost to convert foreign currency into New Zealand dollars as required under NZ IFRS 9. Other reserves comprise: — A share-based payment reserve relating to the employee share purchase scheme. When shares are vested to the employee, the reserve is offset with a reduction in treasury shares. — A foreign currency translation reserve to record exchange differences arising from the translation of the group’s foreign operations. — A reserve to record the fair value movements in the group’s investments in financial assets.
Other reserves
102
Vector Annual Report 2023
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