NOTES
NOTE 1
Intangible assets
| Carrying value | Amortisation | |||||||
| 31 December 2019 R’000 |
31 December 2018 R’000 |
30 June 2019 R’000 |
31 December 2019 R’000 |
31 December 2018 R’000 |
30 June 2019 R’000 |
|||
| Goodwill | 1 366 027 | 926 293 | 1 336 842 | – | – | – | ||
|---|---|---|---|---|---|---|---|---|
| Goodwill – AfroCentric Health | 460 459 | 452 339 | 460 460 | – | – | – | ||
| Goodwill – Pharmacy Direct | 473 954 | 473 954 | 473 954 | – | – | – | ||
| Goodwill – Activo* | 431 614 | – | 402 428 | – | – | – | ||
| Intangible Assets | 1 265 220 | 937 284 | 1 219 170 | (77 179) | (54 267) | (110 941) | ||
| Customer relationships – Retail cluster | 49 963 | 58 911 | 49 670 | (4 474) | (4 474) | (14 204) | ||
| Dossiers (Activo) | 278 920 | – | 263 160 | (7 884) | – | – | ||
| Afrocentric Health PPA intangibles | 50 351 | 53 055 | 55 149 | (5 638) | (3 639) | (8 367) | ||
| Software | 885 986 | 825 318 | 851 191 | (59 183) | (46 154) | (88 370) | ||
| Computer software | 309 676 | 216 804 | 297 240 | (15 797) | (19 783) | (36 203) | ||
| Fusion | 186 295 | 172 893 | 195 165 | (8 871) | – | – | ||
| Nexus & Other Healthcare Administration Systems | 294 254 | 309 920 | 253 152 | (16 119) | (12 702) | (21 393) | ||
| Insurance Fraud Manager (IFM) | 95 761 | 125 701 | 105 634 | (18 396) | (13 669) | (30 774) | ||
| 2 631 247 | 1 863 577 | 2 556 012 | (77 179) | (54 267) | (110 941) |
| * | Post the acquisition of Activo Health in March 2019, a pre-acquisition dividend to the value of R29 million was declared and payment effected in December 2019. In terms of IFRS 3: Business Combination, the provisional accounting applied to the acquisition of Activo health was finalised in December 2019, resulting in an increase in the trade and other payables by R29 million, with a corresponding increase in Goodwill. |
Total group cash resources
| Unaudited six months ended 31 December 2019 R’000 |
Unaudited six months ended 31 December 2018 R’000 |
Audited year ended 30 June 2019 R’000 |
|||
| Cash and Cash Equivalents | 205 921 | 138 848 | 265 295 | ||
|---|---|---|---|---|---|
| Managed funds and deposits (current) | – | 68 643 | – | ||
| Total current cash, managed funds and deposits | 205 921 | 207 491 | 265 295 | ||
| Managed funds and deposits (non-current) | – | 68 053 | – | ||
| Total cash resources | 205 921 | 275 544 | 265 295 |
Borrowings
| Unaudited six months ended 31 December 2019 R’000 |
Unaudited six months ended 31 December 2018 R’000 |
Audited year ended 30 June 2019 R’000 |
|||
| Borrowings (non-current) | 366 218 | – | 371 566 | ||
|---|---|---|---|---|---|
| Borrowings (current) | 86 250 | – | 120 000 | ||
| Total borrowings | 452 468 | – | 491 566 |
As at 30 June 2019, the Group had utilised R550 million of its credit facilities of which R59 million was repaid as at year-end.
During the interim period, all interest was serviced and an additional R40 million was repaid.
RIGHT OF USE ASSET AND LEASE LIABILITY
On implementation of IFRS16 in July 2018 a business decision to acquire the Flora Office Park had not been taken by management. A right of use asset of R73 million and a corresponding lease liability of the same value for the remaining lease period of 7 years was therefore recognized for the office park in July 2018 with resultant carrying value of R68 million and R69 million lease liability being recognised respectively in the interim results as at 31 December 2018.
In April 2019 a business decision was taken to purchase the Flora Office Park to the value of R78 million, payment of which was effected in June 2019, resulting in the decrease in the Right of Use of Assets and the Lease Liability both at 30 June 2019 and 31 December 2019. The transfer of the property was finalised in July 2019.