Notes to the Consolidated And Separate Annual Financial Statements | Note 31

31. CONTINGENT CONSIDERATION
 

In instances where on acquisition of an entity by one of the entities within AfroCentric, the full purchase consideration is not paid at the time of acquisition, a contingent consideration is recognised for the amount that will be payable in the future.

The contingent consideration is calculated as the fair value at the reporting date of the amount to be paid in the future.
31.1 Contingent consideration comprises:
 
  Group Company
  2024
R’000		 2023
R’000		 2024
R’000		 2023
R’000
Contingent consideration on Activo Healthcare Assets Proprietary Limited – 80 123 – –

This represents the fair value of the contingent consideration relating to the acquisition of Activo Healthcare Assets Proprietary Limited during the prior financial period. The fair value has been assessed at year-end.

In January 2024, a settlement of the final portion of the purchase price consideration acquisition of Forrester Pharma was settled.
31.2 Reconciliation of the movement:
 
  Group Company
  2024
R’000		 2023
R’000		 2024
R’000		 2023
R’000
Opening Balance 80 123 75 798 – –
Fair value adjustment – (5 176) – –
Finance cost – 9 501 – –
Derecognition (80 123) – – –
CURRENT LIABILITIES – 80 123 – –

The contingent consideration was settled in January 2024.