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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued Group Company 2015 R’000 2014 R’000 37. Business combinations (continued) AFRICAN DAWN 101 ANNUAL REPORT 2015 2015 R’000 2014 R’000 Fair value of net assets acquired Property, plant and equipment (refer to note 3) 52 - - - Intangible assets on contracts (refer to note 5) 6,543 - - - Deferred tax asset (refer to note 9) 54 - - - Trade and other receivables (E) 522 - - - Cash and cash equivalents 26 - - - Tax payable (15) - - - Trade and other payables (836) - - - Deferred tax liability (refer to note 9) (1,833) - - - Bank overdraft (13) - - - Directors' loans (21) - - - 4,479 - - - Goodwill recognised (refer to note 4) 8,076 - - - The revenue included in the consolidated statement of comprehensive income since 26 March 2014 contributed by the Knife Capital Group was R8 891 000 and the profit that was contributed was R2 023 000. Had Knife Capital Group been consolidated from 1 March 2014, the consolidated statement of comprehensive income would show pro-forma revenue of R8 891 000 and profit of R2 023 000. The transactions between 1 March and 26 March 2014 were insignificant. (A) The share price of 9 cents was determined based on the listed share price on 28 March 2014. Acquisition related costs of R550,000 has been recognised in profit or loss (refer to note 26). Acquisition costs of R80,000 relating to the issue of shares have been netted against the deemed proceeds. (B) The first NAV liability was due for payment in March 2015 and was interest free. In November 2014, the terms were renegotiated and remained interest free but the amount is paid on a monthly basis over 24 months (R60 833 per month). (C) The terms were the same as the first NAV liability. Subsequent to year end, and as announced on SENS on 1 July 2015, the vendors have released the Group from the obligation to settle this liability (refer to note 45). (D) This amount related to contingent consideration in terms of which an additional amount would be payable if the Company did not raise capital of R50 million by 26 March 2015. The amount would be determined in accordance with a specific formula but was capped at R2 million. It was due to be settled in a variable number of shares in the short term. At the acquisition date, the fair value of the contingent consideration was nil. At year end, the fair value was R2 million and this amount was therefore recognised in profit or loss. Subsequent to year end, and as announced on SENS on 1 July 2015, the vendors have released the Group from the obligation to settle this liability (refer to note 45). (E) The fair value of trade receivables is R522 305. The gross contractual amount for trade receivables due is R522 305, of which R522 305 is expected to be collectible.


AFRICAN DAWN 2015 Annual Report
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