AfroCentric Group

SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	% change		Unaudited six months ended 31 December 2016 R’000		Unaudited six months ended 31 December 2015 R’000		Restated audited year ended 30 June 2016 R’000
Healthcare service revenue			1 300 155		1 121 661#		2 399 669
Healthcare service operating costs			(1 069 204)		(913 173)#		(2 055 514)
Healthcare service operating profit	10.77		230 951		208 488		344 155
Healthcare retail revenue			509 778		320 406#		748 477
Healthcare retail cost of sales			(409 909)		(251 219)#		(588 204)
Healthcare retail gross profit	44.35		99 869		69 187		160 273
Healthcare retail operating costs			(72 070)		(69 113)#		(128 067)
Total healthcare operating profit	24.06		258 750		208 562		376 361
Impairment of assets			2 895		–		(21 469)
Net finance and investment income			13 150		11 230		29 964
– Finance and investment income			36 130		13 636		59 471
– Finance cost: Conditional put option obligation			(22 953)		–		(24 960)♦
– Finance cost: Other			(27)		(2 406)		(4 547)
Share-based payment expense			(2 096)		(3 222)		(6 444)
Share of associate profits			9 907		2 469		10 118
Profit before depreciation and amortisation			282 606		219 039		388 530
Depreciation			(20 652)		(17 643)		(38 011)
Amortisation of intangible assets (NOTE 2)			(42 135)		(50 716)		(79 332)
Profit before income taxation	45.88		219 819		150 680		271 187
Taxation expense			(66 600)		(41 121)		(77 515)
Profit for the period after taxation	39.85		153 219		109 559		193 672
Other comprehensive (loss)/income			(3 007)		5 166		4 971
Total comprehensive income for the period			150 212		114 725		198 643
Attributable to:
Equity holders of the Parent			98 046		99 194		145 320
Non-controlling interest (NOTE 3)			52 166		15 531		53 323
			150 212		114 725		198 643

NOTE 1
#	Certain amounts have been regrouped for a more meaningful comparison with the June 2016 audited results.
♦	The audited results for the year ended 30 June 2016 have been restated.

NOTE 2

Intangible assets	Carrying value 31 December 2016		Amortisation 31 December 2016		Amortisation 31 December 2015
Goodwill – AfroCentric Health	398 122		–		–
Goodwill – WAD acquisition	473 954		–		–
Customer relationships – WAD acquisition	76 808		(4 474)		(16 824)
AfroCentric Health intangible assets	491 289		(37 661)		(33 892)
AfroCentric Health intangible PPA	25 931		(2 916)		(7 059)
AfroCentric Health intangible Software	369 214		(24 298)		(18 485)
Insurance Fraud Manager (Fraud Management Software)	96 144		(10 447)		(8 348)
	1 440 173		(42 135)		(50 716)

NOTE 3
The significant increase in the comparable amount attributable to Non-controlling interest arises substantially through the subscription by Sanlam for 28.7% of the shares in ACT Healthcare Assets (Pty) Ltd.