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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
2017
R’000
2016
R’000
18. Taxation
Current tax
6
—
Current year
—
—
Adjustment in respect of prior year
6
—
Deferred tax
(5 243)
5 902
Current year
(5 304)
6 241
Adjustment in respect of prior year
61
(339)
(5 237)
5 902
Tax rate reconciliation
Net profit before tax
(97 846)
185 948
Tax at 28%
(27 397)
52 065
Dividends received
(4 047)
(2 749)
Fair value adjustments
(329)
(6 473)
Investment impairment reversal
—
(44 216)
Impairment of investments
18 585
—
Expenditure not deductible for tax purposes
76
1 212
Expenditure of a capital nature
7 808
6 654
Adjustment in respect of prior year
67
(339)
Capital gains tax
—
(252)
(5 237)
5 902
Effective tax rate
5%
3%
2017
R’000
2016
R’000
19. Cash utilised by operations
Reconciliation of operating loss to cash flows from operating activities
Operating (loss)/profit
(105 303)
183 493
Adjustments for:
Dividends received
(14 453)
(3 598)
Depreciation of property and equipment
4 762
6 190
Amortisation on intangible assets
13
54
Impairment of loans and investments
66 479
2 496
Reversal of impairment of loans and investments
—
(157 914)
Loss on disposal of property and equipment
54
4
Profit on disposal of subsidiaries
—
(900)
Equity compensation benefit expense
9 242
8 241
Net unrealised foreign exchange loss/(profit)
19 954
(25 066)
Changes in working capital:
Decrease/(increase) in trade and other receivables
3 242
(2 051)
Increase/(decrease) in trade and other payables
6 560
(20 222)
(9 450)
(9 273)
Notes
to the Company annual financial statements
continued
For the year ended 31 May 2017