195 / 220
/
193
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
2017
R’000
2016
R’000
16. Operating (loss)/profit
The following items have been charged/(credited), in arriving at operating
profit/(loss):
Acquisition-related costs
23 003
21 639
Audit fees – other
—
134
Audit fees – services as auditors
5 699
7 355
Consulting fees
5 405
6 882
Foreign exchange loss
19 800
—
Foreign exchange profit**
—
(26 049)
Contingent purchase price release (refer to note 2)**
(4 698)
(30 924)
Impairment of loans and investments*
66 479
2 496
Reversal of impairment of loans and investments
—
(157 914)***
Insurance
920
899
Legal fees
197
198
Operating lease rentals – premises
(1 166)
(897)
Rental paid
16 662
13 507
Rental recovery
(17 828)
(14 404)
Overseas travel
3 019
2 166
Loss on disposal of property and equipment
54
4
Profit on disposal of subsidiary
—
(900)
* An impairment loss of R0.1 million (2016: R2.5 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 22). 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. An impairment loss of
R66.4 million was recognised in the current year relating to the impairment of investments in line with our stated accounting
policies. The impairment arose due to the impairment indicators of these assets. Value-in-use calculations were performed on
these assets and the relevant provisions for impairment raised. Refer to note 4.1 of the Group financial statements.
** Included in other income.
***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.
2017
R’000
2016
R’000
17. Finance costs and finance income
Finance costs
– Bank
6
6
– Unwinding of contingent purchase price
3 519
7 806
3 525
7 812
Finance income
– Bank
(402)
(327)
– Loans
(10 580)
(9 940)
(10 982)
(10 267)
Net finance income
(7 457)
(2 455)
Notes
to the Company annual financial statements
continued
For the year ended 31 May 2017