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NOTE 1: INTANGIBLE ASSETS

			Carrying value			Amortisation
	Unaudited  six months  ended  31 December  2022  R'000		Unaudited  six months  ended  31 December  2021  R'000	Audited  year  ended  30 June  2022  R'000	Unaudited  six months  ended  31 December  2022  R'000	Unaudited  six months  ended  31 December  2021  R'000	Audited  year  ended  30 June  2022  R'000
Goodwill	1 558 496		1 564 269	1 558 496	–	–	–
AfroCentric Health		473 980	473 980	473 980	–	–	–
Pharmacy Direct and Curasana		473 954	473 954	473 954	–	–	–
Activo		424 645	424 645	424 645	–	–	–
DENIS		34 918	34 918	34 918	–	–	–
Activo Healthcare Assets		150 999	156 772	150 999	–	–	–
Intangible assets	1 505 818		1 550 803	1 517 840	(107 047)	(114 272)	(231 269)
Customer relationships – Pharmacy Direct and Curasana		16 127	25 076	20 601	(4 474)	(4 474)	(8 949)
Activo Dossiers		259 355	268 589	254 301	(8 750)	(7 884)	(17 259)
Customer relationships – DENIS		35 760	48 763	42 262	(6 502)	(6 502)	(13 003)
Activo Healthcare Assets Dossiers		161 411	180 894	161 124	(4 301)	(9 675)	(19 942)
AfroCentric Health intangible assets		229 169	234 399	207 960	(7 214)	(16 548)	(59 528)
AfroCentric Health PPA		18 690	20 672	14 695	(3 995)	(5 993)	(11 970)
AfroCentric Health software		210 479	213 727	193 265	(3 219)	(10 555)	(47 558)
Administration Systems – Self Generated	803 996		786 083	831 592	(75 807)	(63 098)	(83 144)
Nexus & Other Healthcare Administration Systems		803 996	786 083	831 592	(75 807)	(63 098)	(83 144)
Insurance Fraud Manager (Fraud Management Software)	–		6 999	–	–	(6 091)	(29 444)
	3 064 314		3 115 072	3 076 336	(107 047)	(114 272)	(231 269)

NOTE 2: BORROWINGS

	Unaudited   six months   ended   31 December   2022   R'000	Unaudited   six months   ended   31 December   2021   R'000	Audited   year ended   30 June   2022   R'000
Borrowings (non-current)	523 907	687 417	531 082
Borrowings (current)	120 000	120 000	120 000
Total borrowings	643 907	807 417	651 082

NOTE 3: NET CASH

	Unaudited  six months  ended  31 December  2022  R'000	Unaudited  six months  ended  31 December  2021  R'000	Audited  year ended  30 June  2022  R'000
Cash and cash equivalents	155 157	202 441	138 589
Bank overdraft	(298 670)	–	(2 350)
Net cash	(143 513)	202 441	136 239

NOTE 4: RESTATEMENT OF DECEMBER 2021 RESULTS

Note 4.1 Split in consideration payable for the acquisition of Activo Healthcare Assets (Pty) Ltd

In the December 2021 financial period, the Group had presented the deferred payment liability and the contingent consideration combined. The restatement has been performed to separately disclose the non-current contingent consideration and the current deferred payment liability.

The table below illustrates the impact of the restatement on the consolidated statement of financial position:

	December 2021   As previously   reported   R'000	Adjustment  increase/  (decrease) R'000	December 2021  Restated  R'000
Non-current liabilities	1 220 808	(13 328)	1 207 480
Deferred tax liabilities	286 153	–	286 153
Non-current provisions	8 350	–	8 350
Post-employment medical obligations	2 137	–	2 137
Lease liabilities	140 526	–	140 526
Borrowings	687 417	–	687 417
Contingent consideration	96 225	(13 328)	82 897
Current liabilities	816 840	13 328	830 168
Employment benefit provisions	93 259	–	93 259
Trade and other payables	516 231	–	516 231
Provisions	8 631	–	8 631
Current tax liabilities	11 058	–	11 058
Lease liabilities	67 661	–	67 661
Borrowings	120 000	–	120 000
Deferred payment liability	–	13 328	13 328
Total liabilities	2 037 648	–	2 037 648

Note 4.2 Classification of investment in Centriq Gap cover business

Subsequent to the initial recognition of the investment in Centriq Gap cover business it was established that the investment does not meet the definition of an insurance contract. Consequently the investment was classified as a financial asset measured at fair value through profit and loss in line with IFRS 9.

The table below illustrates the impact of the restatement on the statement of comprehensive income:

	December 2021 As previously reported R'000	Adjustment  increase/  (decrease) R'000	Impact of  representation  of discontinued  operations*	December 2021 Restated R'000
Revenue from contracts with customers	4 288 639	(3 599)	(15 399)	4 269 641
Fair value gain	1 101	3 599	–	4 700

The table below illustrates the impact of the restatement on the consolidated statement of financial position:

	December 2021 As previously reported R'000	Adjustment  increase/  (decrease) R'000	December 2021 Restated R'000
	63 210	–	63 210
Other financial assets	30 006	33 204	63 210
Investment in Insurance Contracts	33 204	(33 204)	–

The table below illustrates the impact of the restatement on the consolidated operating performance (Non-IFRS measure):

	December 2021 As previously reported R'000	Adjustment  increase/ (decrease) R'000	Impact of  representation  of discontinued  operations*	December 2021 Restated R’000
Healthcare services revenue	2 128 640	(3 599)	(15 399)	2 109 642
Healthcare services operating profit	329 259	(3 599)	3 214	328 874
Fair value gain	1 101	3 599	–	4 700

*	This relates to the required re-presentation of comparative periods as a result of the Group disposing of 74% of its investment in Private Health Administrators, effective 1 July 2022. Refer to Note 5 for the details of the disposal.

NOTE 5: DISCONTINUED OPERATIONS

During the current financial period, the Group disposed of 74% of its investment in the following subsidiary:

Subsidiary	Effective date of sale
Private Health Administrators Proprietary Limited	01-July-22

Financial information relating to the discontinued operations for the prior periods to the date of disposal are set out below:

Note 5.1: Loss from discontinued operations excluding gains and losses from measurement or disposal are as follows:

		31 December  2021  R'000	30 June  2022  R'000
Revenue		15 399	29 353
Cost of sales		–	–
Gross profit		15 399	29 353
Other income		38	90
Depreciation		(48)	(161)
Right of use asset depreciation		(929)	(1 681)
Interest on lease liability		(299)	(573)
Lease reversal		963	1 681
Other expenses		(18 613)	(33 157)
Loss before tax		(3 489)	(4 448)
Income tax		–	(2 489)
Loss for the year		(3 489)	(6 937)
	Other comprehensive income from discontinued operations	–	–
	Total comprehensive income from discontinued operations	(3 489)	(6 937)

Note 5.2: Cash flows from discontinued operations

	31 December  2021  R'000	30 June  2022  R'000
Net cash generated from operating activities	72	10 760
Net cash ( utilised in)/generated from investing activities	(48)	270
Net cash utilised in financing activities	–	(8 174)
	24	2 856
		1 July 2022  R'000
Proceeds on sale of subsidiaries		–
Less cash balances disposed		3 629
Net cash outflow on disposal of subsidiaries		(3 629)

Note 5.3: Details of the sale of the subsidiaries

	1 July 2022 R'000
Consideration received or receivable:
Cash	–
Fair value of contingent consideration	3 946
Add fair value of remaining investment	1 757
Total disposal consideration	5 703
Carrying amount of net assets sold	5 901
Loss on sale	(198)
Income tax expense on loss	–
Loss on sale after income tax	(198)

The carrying amounts of assets and liabilities as at the date of sale were:

	1 July 2022 R'000
Property, plant and equipment	539
Other financial assets	327
Right use of asset	6 304
Deferred tax asset	746
Trade and other receivables	7 283
Cash and cash equivalents	3 629
Total assets	18 828
Lease liability	7 580
Trade and other payables	4 111
Current tax liability	1 236
Total liabilities	12 927
Net assets sold	5 901
Non-distributable reserves	–
Carrying amount of net assets sold	5 901