Notes to the Consolidated And Separate Annual Financial Statements | Note 20

20. PROFIT BEFORE TAXATION

Profit before taxation is stated after charging the following items:

Group Company
2024
R’000		 2023
R’000		 2024
R’000		 2023
R’000
AUDITORS’ REMUNERATION (INCLUDED IN “OTHER EXPENSES”) 20 112 18 467 4 452 2 613
Audit fees 18 619 17 637 3 525 2 359
Prior period under provision 1 493 830 927 254
DEPRECIATION OF PROPERTY AND EQUIPMENT 94 142 82 976 – –
Motor vehicles 3 752 3 556 – –
Computer equipment 56 709 48 218 – –
Buildings 5 653 4 841 – –
Furniture and fittings 15 377 14 981 – –
Property and Equipment 10 984 9 723 – –
Leasehold improvements 1 667 1 657 – –
Amortisation of development costs and other intangible assets 192 690 208 823 – –
Right of use asset depreciation 52 747 65 380 – –
Share-based payment expense 3 133 17 837 124 695
Bad debt write-off 12 398 16 332 – –
Expected credit loss allowance 36 482 41 102 – –
Rent and property costs 107 234 87 479 – –
Buildings* 104 652 85 831 – –
Office equipment and furniture* 2 582 1 648 – –
Repairs and maintenance (included in rent and property costs) 15 816 21 623 – –
Rent and property costs total 123 050 109 102 – –
Capitation costs 1 645 000 1 772 982 – –
* Included in the rent and property cost is short-term leases of 2024: R2 552 000 (2023: R1 648 000) relating to office equipment and furniture 2024: R2 581 000 (2023: R1 648 000).

Group Company
2024
R’000		 2023
R’000		 2024
R’000		 2023
R’000
DIRECTORS’ EMOLUMENTS AND FEES
(included in employee benefit costs)
EXECUTIVE
A Banderker* 10 404 19 288 – –
– Cash package paid during the year 1 810 5 427 – –
– Performance related payments/bonuses – 5 622 – –
– Retention bonus** 8 477 6 154 – –
– Profit on vesting of share-based payments – 1 733 – –
- Company contributions paid during the year¹ 117 352 – –
JW Boonzaaier 7 905 7 023 – –
– Cash package paid during the year 3 883 3 689 – –
– Performance related payments/bonuses – – – –
– Retention bonus** 2 540 1 482 – –
– Other allowance 66 66 – –
– Profit on vesting of share-based payments 1 177 1 560 – –
– Company contributions paid during the year¹ 239 226 – –
GN Van Wyk*** 4 309 – – –
– Cash package paid during the year 4 096 – – –
– Company contributions paid during the year 213 – – –
NON-EXECUTIVE
FOR SERVICES AS DIRECTORS****		 7 901 8 076 7 901 8 076
Dr ATM Mokgokong 1 847 1 803 1 847 1 803
MJ Mandungandaba 2 091 2 045 2 091 2 045
M Chauke 675 681 675 681
MK Dippenaar 409 – 409 –
JB Fernandes 1 247 1 166 1 247 1 166
PB Hanratty***** – 30 – 30
AM Le Roux 735 768 735 768
K Mkhize***** – 422 – 422
Dr ND Munisi 599 569 599 569
WH Britz 298 – 298 –
FG Allen – 592 – 592
* Mr A Banderker resigned on 31 October 2023.
** Retention bonus payments were made in the first half of the 2023 financial year for a retention period to November 2024, aimed at retention of key skills and continuity after the Sanlam transaction. The amount recognised in the current year, relates to the portion of the retention bonus that is in respect of the 2024 financial year.
*** Mr GN van Wyk was appointed as CEO on 1 November 2023.
**** The directors’ remuneration highlighted above reflects their total directors’ fees received across various subsidiaries within the Group
***** Sanlam Group executive directors do not get remunerated for their services as directors on the AfroCentric board of directors.
1 The company contributions relate to contributions made by the employer towards pension funds.

Group Company
2024 
R’000 		 2023 
R’000 		 2024 
R’000 		 2023
R’000 
EMPLOYEE BENEFIT COSTS 2 699 057  2 445 087  4 634  2 648 
Salaries and wages  2 269 722  2 116 301  4 634  2 648 
Termination benefits  3 609  3 736  –  – 
Incentive, production and performance bonus  167 984  96 655  –  – 
Staff welfare  62 362  52 533  –  – 
Movement in post-employment medical obligation  71  141  –  – 
Other employee benefit cost  195 309  175 721  –  – 
Dividends received  –  (105) (92 500) (107 078)
Loss on disposal of property and equipment  3 491  3 338  –  – 
Write-off of intangible assets  6 060  5 415  –  – 
Fair value gains/(losses) 1 769  (3 669) –  – 
Fair value gains on investment property  1 769  1 750  –  – 
Other fair value losses  –  (5 419) –  – 
Impairments  274 265  27 115  –  – 
Impairment of property and equipment  26 611  25 000  –  – 
Impairment of intangible assets  230 835  –  –  – 
Impairments of investment in associates  14 661  –  –  – 
Impairment of loans  2 158  2 115  –  – 
IT Costs*  212 819  255 701  –  – 
OTHER EXPENSES**
Included in other expenses are the following: 
Donations  1 274  641  –  – 
Consulting fees  621 599  578 006  15 538  18 931 
Legal fees  14 498  31 143  –  – 
Operating expenditure***  336 050  311 310  17 312  12 485 
Marketing and recruitment  90 064  88 904  8 197  2 927 
VAT expenses  1 973  21 207  4  – 
* IT costs relates mainly to software licenses, managed service contracts and internet connectivity.
** The disclosure for Other expenses relates to the expenses deemed significant and does not include all items of Other expenses.
*** This relates mainly to motor vehicle, telephone, travel, postage and subscription costs.