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UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
2023
2023

NOTES

NOTE 1: INTANGIBLE ASSETS

  Carrying value      Amortisation   
Unaudited 
six months 
ended 
31 December 
2023 
R'000 
Restated*
Unaudited 
six months 
ended 
31 December 
2022 
R'000 
Audited 
year 
ended 
30 June 
2023 
R'000 
Unaudited 
six months 
ended 
31 December 
2023 
R'000 
Unaudited 
six months 
ended 
31 December 
2022 
R'000 
Audited 
year 
ended 
30 June 
2023 
R'000 
Goodwill  1 558 496  1 558 496  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  150 999  150 999  —  —  — 
Intangible assets  1 490 523  1 505 818  1 487 045  (94 805) (107 047) (208 823)
Customer relationships – Pharmacy Direct and Curasana  15 255  24 204  19 730  (4 474) (4 474) (8 949)
Activo Dossiers  250 711  259 355  256 372  (8 865) (8 749) (17 618)
Customer relationships – DENIS  22 757  35 760  29 259  (6 502) (6 502) (13 003)
Activo Healthcare Assets Dossiers  145 516  161 411  153 689  (8 576) (4 301) (13 103)
AfroCentric Health intangible assets   115 315  145 948  96 177  (9 749) (7 214) (36 937)
Customer relationships – AfroCentric Health PPA  40 547  44 573  42 559  (2 013) (3 995) (6 008)
AfroCentric Health software  74 768  101 375  53 618  (7 736) (3 219) (30 929)
Administration Systems – Self Generated  940 969  879 140  931 818  (56 639) (75 807) (119 213)
Nexus & Other Healthcare Administration Systems  940 969  879 140  931 818  (56 639) (75 807) (119 213)
3 049 019  3 064 314  3 045 541  (94 805) (107 047) (208 823)
* During the June 2023 year-end reporting, the Group performed a detailed review of the classes of intangible assets to ensure that the disclosure in the summarised financial statements aligns to the underlying accounting records. Reclassifications were performed to correct the prior period classification error. The total intangible asset value was not impacted by the reclassification.

NOTE 2: BORROWINGS

Unaudited
six months
ended
31 December
2023
R'000
Unaudited
six months
ended
31 December
2022
R'000
Audited
year ended
30 June
2023
R'000
Borrowings (non-current) 518 730 523 907 528 005
Borrowings (current) 120 000 120 000 120 000
Total borrowings 638 730 643 907 648 005

NOTE 3 : RESTATEMENT OF PRIOR PERIOD

Note 3.1 Restatement of December 2022 results

During the 2020, 2021 and 2022 financial periods, MMed Distribution Proprietary Limited (MMed) erroneously omitted to accrue for purchase invoices as a result of late submission of the invoices by the suppliers.

These cut-off errors resulted in MMed's cost of sales and payables being understated at each period end. The cut-off error relates to inventory already delivered to customers at each period end, therefore the inventory balance is unaffected by the error.

The error did not have an impact on the Group's cash flows.

The error has been corrected by restating each of the affected financial statement line items for the prior period as follows:

Consolidated statement of financial position (extract) December 2022
As previously
reported
R'000
Adjustment 
increase/ 
(decrease)
R'000 
December 2022
Restated
R'000
Equity
Retained income 1 210 587 (9 685) 1 200 902
Non-controlling interests 1 002 758 (9 719) 993 039
Total equity 3 415 245 (19 404) 3 395 841
Trade and other payables 792 795 19 404  812 199
Total current liabilities 1 341 729 19 404  1 361 133
Total liabilities 2 307 599 19 404  2 327 003
Total equity and liabilities 5 722 844 —  5 722 844

Note 3.2 Changes in presentation – Statement of comprehensive income

During the current financial period, the disclosure was revised to disaggregate material expense line items from Other expenses as previously disclosed, to provide more relevant information for the users of the financial statements.

The enhancement has been effected by restating the financial statement line items for the prior period as follows:

Statement of comprehensive income (Extract) December 2022 
As previously 
reported 
R'000 
Adjustment 
increase/ 
(decrease)
R'000 
December 2022 
Restated 
R'000 
Capitation costs —  (922 291) (922 291)
Other expenses (1 481 404) 922 291  (559 113)

NOTE 4: NET CASH

Unaudited 
six months 
ended 
31 December 
2023 
R'000 
Unaudited 
six months 
ended 
31 December 
2022 
R'000 
Audited 
year ended 
30 June 
2023 
R'000 
Cash and cash equivalents  189 297  155 157  189 763 
Bank overdraft  (2 656) (298 670) (104 007)
Net cash  186 641  (143 513) 85 756