| |
2018
R’000 |
|
|
2017
R’000 |
|
| Listed associates |
4 469 751 |
|
|
4 661 516 |
|
| Net asset value at acquisition |
1 430 447 |
|
|
1 425 513 |
|
| Inherent goodwill |
4 083 041 |
|
|
4 073 768 |
|
| Remeasurement allowances |
(1 043 737) |
|
|
(837 765) |
|
| Unlisted associates |
54 841 |
|
|
104 182 |
|
| Net asset value at acquisition |
199 272 |
|
|
205 876 |
|
| Inherent goodwill |
6 584 |
|
|
6 732 |
|
| Remeasurement allowances |
(151 015) |
|
|
(108 426) |
|
|
|
|
|
|
|
| Investments in associates at cost net of remeasurement allowances |
4 524 592 |
|
|
4 765 698 |
|
| Attributable share of post-acquisition reserves of associates |
817 416 |
|
|
608 790 |
|
| At beginning of year |
608 790 |
|
|
442 176 |
|
| Share of current year earnings net of dividend |
217 004 |
|
|
264 737 |
|
| Share of movement in other reserves |
(19 172) |
|
|
(69 191) |
|
| Reversal of prior year reserves on unbundling, disposal, and or change in shareholding |
10 794 |
|
|
(28 932) |
|
| Advances to associates |
19 |
|
|
840 |
|
| |
5 342 027 |
|
|
5 375 328 |
|
|
|
|
|
|
|
Unsecured advances to associates are interest-free and have no fixed terms of repayment.
A list of the Group’s significant associates, their country of incorporation and principal place of business, the Group’s percentage
shareholding and an indication of their nature of business is included on Annexure A to these financial statements.
The Group’s most significant associate is Adcock Ingram Holdings Limited (Adcock). Adcock is a leading South African
pharmaceutical manufacturer, listed on the Johannesburg Stock Exchange. The company manufactures, markets and distributes a
wide range of healthcare products to both the private and public sectors of the market.
The Group holds an effective 38,5% (2017: 38,4%) of the net ordinary shares in issue in Adcock, but equity accounts for 45,2%
(2017: 45,0%) of its results as a consequence of treating the sale of 15% of its holding, in terms of the new Adcock BEE scheme
to Ad-izinyosito, as a deferred sale.
Full details of Adcock’s results can be found at www.adcock.co.za.
| |
For the
year ended
30 June
2018
R’000 |
|
|
For the
year ended
30 June
2017
R’000 |
|
| Summarised aggregated financial information of Adcock: |
|
|
|
|
|
| Revenue |
6 562 865 |
|
|
5 957 700 |
|
| Profit for the year |
637 943 |
|
|
553 534 |
|
| Other comprehensive income for the year |
7 040 |
|
|
(147 966) |
|
| Total comprehensive income for the year |
644 983 |
|
|
405 568 |
|
| Dividends received from Adcock during the year |
106 848 |
|
|
77 024 |
|
| Current assets |
3 617 934 |
|
|
3 326 463 |
|
| Non-current assets |
2 652 791 |
|
|
2 236 510 |
|
| Current liabilities |
(2 220 552) |
|
|
(1 726 546) |
|
| Non-current liabilities |
(135 254) |
|
|
(341 423) |
|
| Non-controlling interests |
(2 413) |
|
|
(7 522) |
|
| Reconciliation of the above summarised financial information to the carrying amount of Adcock recognised in the consolidated financial statements: |
|
|
|
|
|
| Net assets of Adcock |
3 912 506 |
|
|
3 487 482 |
|
| Proportion of Group’s interest in Adcock |
1 767 699 |
|
|
1 570 947 |
|
| Inherent goodwill |
3 734 763 |
|
|
3 767 061 |
|
| Provision for impairment of carrying value |
(842 742) |
|
|
(773 352) |
|
| Carrying value of Group’s interest in Adcock |
4 659 720 |
|
|
4 564 656 |
|
| Market value as at 30 June |
4 659 720 |
|
|
4 564 656 |
|
|
|
|
|
|
|
The investment in Adcock forms part of the corporate and investment operating segment. The recoverable amount of the
investment has been assessed with reference to the fair value determined based on the quoted market price at the year ended
30 June 2018. This measurement is considered to be “Level 1” in the fair value hierarchy. The Group assessed the carrying value
and remeasured the investment to recoverable fair value.
The same impairment considerations have been applied to other listed investments in associates.
| |
2018
R’000 |
|
|
2017
R’000 |
|
| Summarised aggregated financial information of associates that are not individually material: |
|
|
|
|
|
| The Group’s share of profit |
141 223 |
|
|
129 728 |
|
| The Group’s share of other comprehensive loss |
(830) |
|
|
(637) |
|
| The Group’s share of total comprehensive income |
140 393 |
|
|
129 091 |
|
| Aggregate carrying amount of the Group investment in these associates |
682 308 |
|
|
810 672 |
|
|
|
|
|
|
|
|