| 2019 R'000 |
2018 R'000 |
||||
| 18. | Interest in associates | ||||
| Listed associates | 4 551 484 | 4 469 751 | |||
| Net asset value at acquisition | 1 734 216 | 1 430 447 | |||
| Inherent goodwill | 4 428 883 | 4 083 041 | |||
| Remeasurement allowances | (1 611 615) | (1 043 737) | |||
| Unlisted associates | 41 229 | 54 841 | |||
| Net asset value at acquisition | 166 484 | 199 272 | |||
| Inherent goodwill | 1 575 | 6 584 | |||
| Remeasurement allowances | (126 830) | (151 015) | |||
| Investments in associates at cost net of remeasurement allowances | 4 592 713 | 4 524 592 | |||
| Attributable share of post-acquisition reserves of associates | 1 210 837 | 817 416 | |||
| At beginning of year | 817 416 | 608 790 | |||
| Share of IFRS 9 adjustment to balance at beginning of the period | (1 882) | – | |||
| Share of current year earnings net of dividend | 427 309 | 217 004 | |||
| Share of current year movement in other comprehensive income | (13 828) | – | |||
| Share of movement in other reserves | – | (19 172) | |||
| Reversal of prior year reserves on unbundling, disposal, and or change in shareholding | (18 178) | 10 794 | |||
| Net advances to associates | 19 | 19 | |||
| Advances to associates | 52 519 | 19 | |||
| Impairments | (52 500) | – | |||
| 5 803 569 | 5 342 027 |
Except for the R53 million advance made to Strait Access Technologies Holdings Proprietary Limited, which attracts interest at the South African prime interest rate (10.25%), all 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 Ingram). Adcock Ingram 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 purchased an additional 10.6 million Adcock Ingram ordinary shares during the year which resulted in the Group holding an effective 44.8% (2018: 38.5%) of the net ordinary shares in issue (total ordinary shares in issue less treasury shares). The Group's economic interest in Adcock Ingram is 51.4% (2018: 45.2%) as a consequence of treating the 2015 sale of 15% of its holding, in terms of the Adcock Ingram Broad-Based Black Empowerment Scheme (Scheme), to Ad-izinyosi as a deferred sale. Full details of Adcock Ingram's results can be found at www.adcock.co.za. |
| 2019 R'000 |
2018 R'000 |
|||
| Summarised aggregated financial information of Adcock Ingram: | ||||
| Revenue | 7 089 058 | 6 562 865 | ||
| Profit for the year | 687 986 | 637 943 | ||
| Other comprehensive income for the year | (32 841) | 7 040 | ||
| Total comprehensive income for the year | 655 145 | 644 983 | ||
| Dividends received from Adcock Ingram during the year | 122 880 | 106 848 | ||
| Current assets | 3 558 617 | 3 617 934 | ||
| Non-current assets | 2 692 176 | 2 652 791 | ||
| Current liabilities | (1 834 629) | (2 220 552) | ||
| Non-current liabilities | (117 970) | (135 254) | ||
| Non-controlling interests | (2 762) | (2 413) | ||
| Reconciliation of the above summarised financial information to the carrying amount of Adcock Ingram recognised in the consolidated financial statements: | ||||
| Net assets of Adcock Ingram | 4 295 432 | 3 912 506 | ||
| Proportion of Group's interest in Adcock Ingram | 2 207 999 | 1 767 699 | ||
| Inherent goodwill | 4 122 176 | 3 734 763 | ||
| Provision for impairment of carrying value | (1 078 410) | (842 742) | ||
| Carrying value of Group's interest in Adcock Ingram | 5 251 765 | 4 659 720 | ||
| Market value as at 30 June | 5 251 765 | 4 659 720 | ||
| The investment in Adcock Ingram forms part of the corporate and investments 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 2019. 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. | ||||
| Summarised aggregated financial information of associates that are not individually material: | ||||
| The Group's share of profit | 267 188 | 141 223 | ||
| The Group's share of other comprehensive loss | – | (830) | ||
| The Group's share of total comprehensive income | 267 188 | 140 393 | ||
| Aggregate carrying amount of the Group investment in these associates | 551 804 | 682 307 |