Annual
Results
for the year ended
30 June
2022
RE-IMAGINING
THE HEALTHCARE
SYSTEM
THE HEALTHCARE
SYSTEM
NOTE 1: INTANGIBLE ASSETS
| Carrying value 2022 R'000 |
Carrying value 2021 R'000 |
Amortisation for the year 2022 R'000 |
Amortisation for the year 2021 R'000 |
|||
| Goodwill | 1 558 496 | 1 407 497 | – | – | ||
|---|---|---|---|---|---|---|
| AfroCentric Health | 473 980 | 473 980 | – | – | ||
| Pharmacy Direct and Curasana | 473 954 | 473 954 | – | – | ||
| Activo | 424 645 | 424 645 | – | – | ||
| DENIS | 34 918 | 34 918 | – | – | ||
| Activo Healthcare Assets | 150 999 | – | – | – | ||
| Intangible assets | 1 517 840 | 1 375 369 | (231 269) | (195 027) | ||
| Customer relationships – Pharmacy Direct and Curasana | 20 601 | 29 550 | (8 949) | (8 948) | ||
| Activo Dossiers | 254 301 | 266 313 | (17 259) | (15 767) | ||
| Customer relationships – DENIS | 42 262 | 55 265 | (13 003) | (9 753) | ||
| Activo Healthcare Assets Dossiers | 161 124 | – | (19 942) | – | ||
| AfroCentric Health intangible assets | 207 960 | 232 543 | (59 528) | (34 451) | ||
| AfroCentric Health PPA | 14 695 | 26 665 | (11 970) | (13 068) | ||
| AfroCentric Health Software | 193 265 | 205 878 | (47 558) | (21 383) | ||
| Administration Systems – Self Generated | 831 592 | 762 254 | (83 144) | (110 342) | ||
| Nexus & Other Healthcare Administration Systems | 831 592 | 762 254 | (83 144) | (110 342) | ||
| Insurance Fraud Manager (Fraud Management Software) | – | 29 444 | (29 444) | (15 766) | ||
| 3 076 336 | 2 782 866 | (231 269) | (195 027) |
NOTE 2: BORROWINGS
| Year ended 30 June 2022 R'000 |
Year ended 30 June 2021 R'000 |
|
| Borrowings (non-current) | 531 082 | 655 785 |
|---|---|---|
| Borrowings (current) | 120 000 | 120 000 |
| Total borrowings | 651 082 | 775 785 |
NOTE 3 – DISCONTINUED OPERATIONS
The note is included for comparative purposes, as the Group disposed of the following subsidiaries during the prior financial year:
| Subsidiary | Effective date of sale |
| Medscheme Administrators Eswatini Proprietary Limited | 31‑May‑21 |
| Medscheme Health Insurance Eswatini Limited | 31‑May‑21 |
| Medscheme Zimbabwe Private Limited | 30-Apr-21 |
| Afrocentric Integrated Health Risk Managers Proprietary Limited | 02-Jul-20 |
Financial information relating to the discontinued operations for the prior period to the date of disposal are set out below:
Note 3.1
Loss from discontinued operations excluding gains and losses from measurement or disposal are as follows:
| 2021 R'000 |
|
| Revenue | 20 627 |
| Cost of sales | – |
| Gross profit | 20 627 |
| Other income | 99 |
| Depreciation | (135) |
| Right of use assets depreciation | (19) |
| Amortisation | (27) |
| Interest on lease liability | (2) |
| Other expenses | (24 013) |
| Reclassification of foreign currency translation reserve | (10 401) |
| Loss before tax | (13 871) |
| Income tax | (137) |
| Loss for the year | (14 008) |
| Exchange differences on translation of discontinued operations | 11 658 |
| Other comprehensive income from discontinued operations | 11 658 |
Note 3.2
Cash flows from discontinued operations
| 2021 R'000 |
|
| Net cash flows from operating activities | 2 553 |
| Net cash flows utilised in investing activities | (3 862) |
| Net cash flows utilised in financing activities | (768) |
| (2 077) | |
| Proceeds on sale of subsidiaries | – |
| Less cash balances disposed | (2 835) |
| Net cash outflow on disposal of subsidiaries | (2 835) |
Note 3.3
Details of the sale of the subsidiaries
| 2021 R'000 |
|
| Consideration received or receivable: | – |
| Cash | – |
| Fair value of contingent consideration | – |
| Total disposal consideration | – |
| Carrying amount of net assets sold | 10 014 |
| Loss on sale | (10 014) |
| Reclassification of foreign currency translation reserve | – |
| Income tax expense on gain | – |
| Loss on sale after income tax | (10 014) |
The carrying amounts of assets and liabilities as at the date of sale were:
| Afrocentric Integrated Health Risk Managers R'000 |
Medscheme Zimbabwe R'000 |
Medscheme Administrators Eswatini R'000 |
Medscheme Health Insurance Eswatini R'000 |
|
| Property, plant and equipment | – | – | 235 | – |
| Intangible assets | – | – | 3 | – |
| Deferred tax asset | 77 | 149 | 10 854 | 722 |
| Trade and other receivables | 601 | 1 641 | 49 | – |
| Current tax asset | 130 | – | 330 | – |
| Cash and cash equivalents | 11 | 140 | 39 | 2 645 |
| Loans to group companies | – | – | – | 4 883 |
| Total assets | 819 | 1 930 | 11 510 | 8 250 |
| Loans from group companies | – | – | 4 883 | – |
| Trade and other payables | 188 | 904 | – | 3 109 |
| Current tax liability | – | 306 | – | 29 |
| Provisions | 274 | – | – | – |
| Total liabilities | 462 | 1 210 | 4 883 | 3 138 |
| Net assets sold | 357 | 720 | 6 627 | 5 112 |
| Non-distributable reserves | – | – | (1 675) | – |
| Non-controlling interest | – | (3 775) | 3 597 | (949) |
| Carrying amount of net assets sold | 357 | (3 055) | 8 549 | 4 163 |