NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS | Note 23

23. Profit before taxation
 

Profit before taxation is stated after charging the following items:

  Group Company
  2021
R’000		 2020
R’000		 2021
R’000		 2020
R’000
Auditors’ remuneration (included in other expenses) 18 817 15 967 2 365 2 301
Audit fees 18 062 15 028 2 045 1 583
Prior period under provision 755 939 320 718
Depreciation of property, plant and equipment 78 202 62 179 – –
Motor vehicles 4 534 3 615 – –
Computer equipment 42 446 31 177 – –
Buildings 5 587 4 601 – –
Furniture and fittings 15 560 14 258 – –
Property and equipment 10 075 8 528 – –
Amortisation of development costs and other intangible assets 195 027 164 091 – –
Right of use asset depreciation 66 564 71 026 – –
Share-based payment expense 10 694 8 876 2 028 226
Bad debt write-off 8 705 2 453 – –
Expected credit loss allowance 2 009 3 219 – –
Rent and property costs 77 857 79 481 – –
Property costs 76 329 73 593 – –
Motor vehicles 200 319 – –
Office equipment and furniture 1 328 5 569 – –
Repairs and maintenance (included in rent and property costs) 13 057 6 013 – –
Directors’ emoluments and fees

(included in employee benefit costs)

  Group Company
  2021
R’000		 2020
R’000		 2021
R’000		 2020
R’000
Executive        
JW Boonzaaier 6 016 5 094 – –
– Basic salary 3 431 3 156 – –
– Bonus 2 083 1 756 – –
– Other allowance 66 – – –
– Profit on vesting of share-based payments 226 – – –
– Company contributions1 210 182 – –
WH Britz 4 513 4 370 – –
– Basic salary 4 292 4 156 – –
– Bonus – – – –
– Company contributions1 221 214 – –
A Banderker 9 388 8 459 – –
– Basic salary 5 063 4 903 – –
– Bonus 4 000 3 242 – –
– Company contributions1 325 314 – –
SE Mmakau 5 238 5 151 – –
– Basic salary 3 451 3 456 – –
– Bonus 1 450 1 479 – –
– Other allowance 114 – – –
– Company contributions1 223 216 – –
Non-executive        
For services as directors* 6 145 5 150 6 145 5 150
ATM Mokgokong 1 608 1 367 1 608 1 367
MJ Mandungandaba 1 553 1 368 1 553 1 368
Dr ND Munisi 408 429 408 429
IM Kirk – 59 – 59
JJ Strydom 193 – 193 –
LL Dhlamini – 326 – 326
HG Motau – 212 – 212
SA Zinn 588 300 588 300
JB Fernandes 595 500 595 500
FG Allen 356 183 356 183
T Alsworth-Elvey – 342 – 342
AM le Roux 457 43 457 43
M Chauke 387 21 387 21
* The directors’ remuneration highlighted above reflects their total directors’ fees received across various subsidiaries within the Group.
1 The company contributions relate to contributions made by the employer towards pension funds.
   Group  Company 
   2021 
R’000 		 2020 
R’000 		 2021 
R’000 		 2020 
R’000 
Employee benefit costs  2 278 354  2 232 445  4 992  5 280 
Salaries and wages    1 987 551   1 941 864 4 992     5 233
Termination benefits  5 701  5 892  –  – 
Incentive, production and performance bonus  149 457  155 141  –  – 
Staff welfare  39 551  50 777  –  44 
Movement in post-employment medical obligation  (179) (16) –  – 
Other employee benefit cost  96 273  78 787  –  3 
   Group  Company 
   2021 
R’000 		 2020 
R’000 		 2021 
R’000 		 2020 
R’000 
Average number of persons employed by the group during the period:        
South Africa 5 653 5 351 1 2
Full time 4 894 4 836 1 2
Part time 759 515 – –
Outside of South Africa 304 342 – –
Full time 277 342 – –
Part time 27 – – –
    Group   Company  
    2021  
R'000  		 2020  
R'000  		 2021  
R'000  		 2020  
R'000  
Dividends received  (1 000) –  (199 795) (56 012)
Loss on disposal of tangible assets  3 947  1 940  –  – 
Write-off of intangible assets  26 793  –  –  – 
Fair value losses/(gains) 6 307  (183) 17  (183)
Impairments  10 378  2 930  –  – 
Impairment of goodwill  771  –  –  – 
Impairment of software  35 485  2 919  –  – 
Reversal of impairment of internally generated software  (39 167) –  –  – 
Impairment of internally generated software  6 093  –  –  – 
Impairment of loans  7 196  11  –  – 
Other expenses             
Included in other expenses are the following:             
Donations  3 255  1 133  –  – 
Consulting fees  392 571  293 863  370  430 
Legal fees  31 026  18 277  –  – 
Operating expenditure*  257 881  213 846  11 095  10 492 
Marketing and recruitment  80 267  81 547  2 983  2 976 
VAT expenses  2 087  3 111  –  – 
Capitation costs**  1 804 412  988 029  –  – 
* This relates mainly to motor vehicle, telephone, travel, postage and subscription costs.
** This relates to pharmacy claims paid by Scriptpharm and dental claims paid by the DENIS Group. The significant increase from prior year is due to the acquisition of DENIS Group.


NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS | Note 23