134 / 248
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
132
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
5.
INTANGIBLE ASSETS AND GOODWILL continued
The carrying amount of goodwill and intangible assets was reduced to their recoverable amounts
through recognition of an impairment loss when required (2015: nil (2014: R1 073 million)).
The cash-generating units to which goodwill is allocated are presented below:
2014
R’000
Blue Label Distribution Proprietary Limited
36 364
36 364
Cellfind Proprietary Limited
21 406
21 406
Viamedia Proprietary Limited
1
185 967
—
Retail Mobile Credit Specialists Proprietary Limited
205 749
205 749
The Prepaid Company Proprietary Limited
2
62 113
62 113
Blue Label Engage Proprietary Limited
3
—
2 742
Panacea Mobile Proprietary Limited
6 883
6 883
TicketPros Proprietary Limited
5 104
5 104
Datacel Group
83 023
83 023
606 609
423 384
1
Viamedia Proprietary Limited was acquired in the current year (refer to note 26).
2
Previously this goodwill was allocated to Crown Cellular Proprietary Limited. Crown Cellular Proprietary Limited was
deregistered and the business divisionalised into The Prepaid Company Proprietary Limited.
3
Blue Label Engage Proprietary Limited was disposed of in the current year (refer to note 25).
Goodwill is allocated to cash-generating units for the purpose of impairment testing.
The recoverable amount, which is the higher of fair value less cost of disposal and the value-in-use of
CGUs, has been determined based on value-in-use calculations. These calculations use cash flow
projections based on financial budgets approved by the Board of Directors for the forthcoming year
and forecasts for up to five years which are based on assumptions of the business, industry and
economic growth. Cash flows beyond this period are extrapolated using terminal growth rates, which
do not exceed the expected long-term economic growth rate.
The key assumptions used for the value-in-use calculations are as follows:
2014
Terminal
growth rate
%
Discount
rate
%
Blue Label Distribution Proprietary
Limited
4.2
17.33
4.2
15.28
Cellfind Proprietary Limited
4.0
18.88
4
18.42
Viamedia Proprietary Limited
4.0
17.38
—
—
Retail Mobile Credit Specialists
Proprietary Limited
4.2
17.33
4.2
15.28
The Prepaid Company Proprietary
Limited
4.5
16.33
4.5
16.78
Blue Label Engage Proprietary Limited
—
—
4
18.92
Panacea Mobile Proprietary Limited
4.0
18.88
4
18.42
TicketPros Proprietary Limited
4.2
17.33
4.2
15.28
Datacel Group
2.5
21.87
2.5
21.42
2015
R’000
2015
Terminal
growth rate
%
Discount
rate
%