177 / 198
For the year ended 31 May 2016
175
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
continued
2016
R’000
2015
R’000
15. Operating profit
The following items have been charged/(credited), in arriving at
operating profit/(loss):
Acquisition-related costs
21 639
1 971
Audit fees – other
134
128
Audit fees – services as auditors
7 355
3 962
Consulting fees
6 882
9 909
Dividend received**
(9 821)
—
Foreign exchange profit**
(26 049)
(10 559)
Contingent purchase price release (refer to note 2)
(30 924)
(923)
Impairment of loans and investments*
2 496
23 484
Reversal of impairment of loans and investments
(157 914)
#
(53 927)***
Insurance
899
890
Legal fees
198
914
Management fees received**
(109 499)
(108 272)
Operating lease rentals – premises
(897)
(1 298)
Rental paid
13 507
12 358
Rental recovery
(14 404)
(13 656)
Overseas travel
2 166
2 266
Loss/(profit) on disposal of property, plant and equipment**
4
(1)
(Profit)/loss on disposal of subsidiary
(900)
334
* An impairment loss of R2.5 million (2015: R23.5 million) was recognised in the current year relating to the impairment of a
related party loan in line with our stated accounting policies (refer to note 21). The related-party loan has been fully impaired
due to the continuing trading losses in these entities which are not considered to be immediately recoverable.
** Included in other income. Refer to note 21.
*** The reversal of impairment relates to the loan to Gold Label Investments Proprietary Limited (Gold Label). The reversal arose due
to Gold Label repaying a portion of the loan previously impaired.
#
The reversal of impairment relates to the investment in Cellfind SA Proprietary Limited of R141.8 million and the investment in
Datacel Direct Proprietary Limited of R16.1 million. The reversal arose due to the impairment indicators of these assets no longer
being applicable. Value-in-use calculations were performed on these assets and their provisions for impairment reversed. Refer
to note 4.1 of the Group financial statements.