Notes to the Group Annual Financial Statements | Note 1.3

1. RESULTS OF OPERATIONS
1.3 Operating profit
2025 
R'000 		   2024 
R'000 
The following has been charged/(credited) in arriving at operating profit:   
Advertising and promotional expenses     54 275    57 553 
Audit fees – services as auditors relating to the year-end audit     19 379    28 127 
Audit fees – other     —    132 
Bad debts recovered     (2 631)   (29 578)
Consulting fees1     50 201    58 167 
Foreign exchange loss/(gain)     1 578    (1 051)
Impairment of inventory     8 034    9 684 
Insurance     27 600    15 663 
IT infrastructure costs and computer-related costs     76 831    64 306 
Legal fees     11 569    13 923 
Licence fees     87 076    74 678 
Loss on disposal of investment in joint venture    7 902    — 
Loss on disposal of property, plant and equipment     1 998    966 
Motor vehicle expenses    11 450    17 056 
Software development and IT project costs1    70 390    34 975 
Staff training     52 492    52 203 
Travel – local and overseas     17 544    13 595 
1 In order to achieve enhanced disclosure software development and IT project costs has been disaggregated from consulting fees. Comparative results have been updated accordingly.
Notes    2025 
R'000 		   2024 
R'000 
Fair value movements comprise the following: 
Fair value gain on surety receivable  3.5    (2 883)   (2 555)
Net fair value gain on financial instruments  3.5    (171 433)   (4 658)
(174 316)   (7 213)
Bad debts and expected credit loss, arising from the application of IFRS 9, comprise the following:  
Bad debts and expected credit loss on loans  (285 372)   123 085 
Expected credit loss on 2DFine and OSI loans  391    1 381 
Bad debts and expected credit losses on trade receivables, other receivables and advances to customers   520 505    383 316 
235 524    507 782 
Modification/derecognition of financial instruments comprise the following: 
Loss/(gain) on modification of financial liability – Class A              
Preference Shares  3.4.2    18 769    (20 682)
Loss on derecognition of financial assets measured at amortised cost  34 103    53 258 
52 872    32 576