annual report 2012 - Pumpkin Patch investor relations

pumpkin patch limited & subsidiaries NOTES TO THE financial statements 31 july 2012pumpkin patch limited & subsidiaries NOTES TO THE financial statements 31 july 201222 Earnings per share(a) Basic earnings per shareConsolidated -Year ended31 July 2012 31 July 2011(i) Group(Loss) attributable to the ordinary equity holders of the company($'000) (27,527) (1,876)Basic earnings per share (cents) (16.4) (1.1)Diluted earnings per share (cents) (16.4) (1.1)(ii) Continuing operationsProfit from continuing operations attributable to the ordinary equityholders of the company ($'000) 10,417 16,151Basic earnings per share (cents) 6.2 9.7Diluted earnings per share (cents) 6.2 9.6(iii) Discontinuing operations(Loss) from discontinued operations attributable to the ordinary equityholders of the company ($'000) (37,944) (18,027)Basic earnings per share (cents) (22.6) (10.8)Diluted earnings per share (cents) (22.6) (10.8)Basic earnings per share is calculated by dividing the profit by the weighted average numberof ordinary shares on issue during the year, 168,036,000 shares (2011: 167,786,000 shares).Diluted earnings per shares is calculated by dividing the profit by the weighted averagenumber of ordinary shares on issue during the year adjusted to assume conversion of dilutivepotential of ordinary shares as a result of the issue of share options, 168,036,000 shares(2011: 167,650,000 shares). Where the market price is lower that the exercise priceof the option, there is no effect on diluted earnings per share.23 Related party transactions(a) SubsidiariesInterests in subsidiaries are set out in note 14.During the year the Company advanced and repaid loans to its subsidiaries by wayof internal current accounts. In presenting the financial statements of the Group, theeffect of transactions and balances between fellow subsidiaries and those with theparent have been eliminated. All transactions with related parties were in the normalcourse of business and provided on commercial terms.Material transactions between the Company and its subsidiaries were:The Company incurs logistics and group administration and management costs.These costs are recharged to subsidiaries in the form of management fees. Subsidiarycompanies account for these costs based on the functional nature of the expenses.Management fees charged by the Company to the subsidiaries during the financialyear were $29,710,000 (2011: $45,703,000).Interest charges of $15,721,000 (2011: $9,502,000). Inter group loans are repayableon demand and attract an interest rate equivalent to that of the LIBOR rate plus 3.25%(2011: 3.25%).Dividends of $nil were received by the Company from Torquay Enterprises Limitedduring the financial year (2011: $65,046,000)Refer also to note 17 for the related party guarantees.(b) Other transactions with key managementor entities related to themIn addition the Group undertook transactions with Directors and their related interestsas detailed below:The Group has made purchases of shop fixtures and fittings from Espies Shopfittersduring the year of $629,000 (2011: $4,624,000). Espies Shopfitters is 59.6% (2011:59.6%) beneficially owned by Kezza Family Trust a shareholder of Pumpkin PatchLimited. Kezza Family Trust is associated with Maurice Prendergast, a Director inPumpkin Patch Limited. The balance owed to Espies Shopfitters at 31 July 2012was $nil (2011: $56,000).87