| SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
| % change |
Audited year ended 30 June 2017 R’000 |
Restated audited year ended 30 June 2016 R’000 |
||||
| Healthcare service revenue | 2 715 266 | 2 399 669 | ||||
|---|---|---|---|---|---|---|
| Healthcare service operating costs | (2 219 292) | (2 055 514) | ||||
| Healthcare service operating profit | 495 974 | 344 155 | ||||
| Healthcare retail revenue | 1 069 435 | 748 477 | ||||
| Healthcare retail cost of sales | (836 734) | (588 204) | ||||
| Healthcare retail gross profit | 232 701 | 160 273 | ||||
| Healthcare retail operating costs | (164 566) | (128 067) | ||||
| Total healthcare operating profit | 49.89% | 564 109 | 376 361 | |||
| Net finance and investment income | 16 106 | 29 964 | ||||
| – Finance and investment income | 62 773 | 59 471 | ||||
| – Finance cost: conditional financial obligation (NOTE 2) | (45 906) | (24 960) | ||||
| – Finance cost | (761) | (4 547) | ||||
| Fair value of second tranche consideration (NOTE 4) | (59 582) | – | ||||
| Impairment of assets (NOTE 6) | (19 851) | (21 469) | ||||
| SANLAM Indemnity provision (NOTE 5) | (14 787) | – | ||||
| Share-based payment expense | (2 096) | (6 444) | ||||
| Share of associate profits | 14 306 | 10 118 | ||||
| Profit before depreciation and amortisation | 28.23% | 498 205 | 388 530 | |||
| Depreciation | (45 098) | (38 011) | ||||
| Amortisation of intangible assets (NOTE 1) | (86 450) | (79 332) | ||||
| Profit before income taxation | 35.20% | 366 657 | 271 187 | |||
| Taxation expense | (146 616) | (77 515) | ||||
| Profit for the year after taxation | 220 041 | 193 672 | ||||
| Other comprehensive (loss)/income | (3 778) | 4 971 | ||||
| Comprehensive net income for the year | 8.87% | 216 263 | 198 643 | |||
| Attributable to: | ||||||
| Equity holders of the Parent | 113 891 | 145 320 | ||||
| Non-controlling interest (NOTE 3) | 102 372 | 53 323 | ||||
| 216 263 | 198 643 |
| Intangible assets | Carrying value 2017 R'000 |
Carrying value 2016 R'000 |
Amortisation 2017 R'000 |
Amortisation 2016 R'000 |
||
| Goodwill – AfroCentric Health | 381 482 | 398 124 | – | – | ||
|---|---|---|---|---|---|---|
| Goodwill – WAD Acquisition | 473 954 | 473 954 | – | – | ||
| Customer relationships – WAD | 72 333 | 81 282 | (8 948) | (8 203) | ||
| Acquisition | ||||||
| AfroCentric Health intangible assets | 535 977 | 435 455 | (77 502) | (71 129) | ||
| AfroCentric Health intangible PPA | 12 038 | 15 946 | (3 908) | (13 811) | ||
| AfroCentric Health intangible Software | 436 626 | 330 889 | (52 588) | (39 062) | ||
| Insurance Fraud Manager (Fraud Management Software) | 87 313 | 88 620 | (21 006) | (18 256) | ||
| 1 463 746 | 1 388 815 | (86 450) | (79 332) |
NOTE 2
Given that the SANLAM target profit undertakings were achieved, the Conditional put option finance obligation no longer applies. Accordingly the SANLAM obligation, together with the aggregate interest, notionally charged thereon through the statement of comprehensive income, has been reversed to equity.
NOTE 3
The additional amount represents the increase in the SANLAM Non-controlling interest, arising through their 28.7% share of the 2017 profits of AfroCentric subsidiary, ACT Healthcare Assets (Pty) Ltd. The prior year only included six months due to the investment in December 2015.
NOTE 4
This amount has been calculated in terms of the contract formula for the second tranche payment of the WAD Assets acquisitions.
NOTE 5
This is as a result of the SANLAM transaction resulting in certain warranties being settled in the new
financial year.
NOTE 6
The impairment mainly relates to IE Business Strategic Consulting (Pty) Ltd which has stopped trading.