158 / 248
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
156
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
2014
R’000
19.
OPERATING PROFIT
The following items have been charged/(credited) in arriving at
operating profit:
Acquisition-related costs
1 971
2 901
Advertising and promotional expenses
14 252
19 173
Amortisation of intangible assets**
121 819
95 004
Audit fees – services as auditors
14 188
14 367
Audit fees – other
491
1 578
Bank charges
6 478
7 670
Communication costs
7 394
5 143
Consulting fees
29 645
25 230
Courier and postage
3 962
4 103
Depreciation
40 813
36 976
Foreign exchange profit*
(20 443)
(16 458)
Impairment of loans
4 907
1 761
Impairment of trade receivables
14 463
4 164
Impairment of trade receivables – provision
(4 738)
1 564
Impairment of intangible assets
—
1 073
Impairment of property, plant and equipment
—
129
Impairment of inventory
—
411
Insurance
7 067
7 081
IT infrastructure costs and computer-related costs
21 117
22 756
Legal fees
14 701
25 311
Local travel
6 559
6 157
Profit on disposal of subsidiaries*
(3 962)
—
Profit on disposal of associates*
(37 238)
—
Management fees paid
5 624
5 324
Management fees received*
(736)
(879)
Motor vehicle expenses
9 484
9 500
Operating lease rentals – equipment
1 731
2 367
Operating lease rentals – premises
33 692
31 093
Overseas travel
5 536
3 194
Printing and stationery
1 547
1 826
Profit on disposal of property, plant and equipment*
(1 707)
(287)
Repairs and maintenance
5 759
11 273
* Included in other income on the Group statement of comprehensive income.
** Included in the amortisation charge is an amount of R73.5 million (2014: R69.8 million) in respect of the purchased
starter pack bases and postpaid bases, which is charged to the changes in inventories of finished goods line in the
statement of comprehensive income.
2015
R’000