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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
AIRTIME
FINANCIAL DIRECTOR’S
REPORT
CONTINUED
CORPORATE
2014
R’000
2013
R’000
Growth
R’000
%
growth
EBITDA
(82 886)
(113 575)
30 689
27
Core net loss
(87 983)
(120 542)
32 559
27
The decline in losses was directly attributable to the
forfeiture of executive bonuses.
STATEMENT OF FINANCIAL POSITION
Total assets increased by R782 million to R6.5 billion,
of which growth in non-current assets accounted for
R458 million and current assets for R324 million.
The increase in non-current assets was mainly
attributable to a net growth in intangible assets and
goodwill of R300 million, capital expenditure net of
depreciation of R9 million and to investment in
associates and joint ventures of R74 million.
The increase in intangible assets and goodwill was
mainly attributable to the acquisition of RMCS, of
which goodwill equated to R206 million and
intangibles R104 million. A further R84 million was
incurred for the purchase of a distribution channel.
Amortisation of intangibles amounted to R95 million.
The increase in investment in associates and joint
ventures was predominantly due to an additional
R89 million capital contribution to Blue Label Mexico,
movement in loans of R11 million, unrealised foreign
exchange gains of R16 million and a positive impact
of R26 million in foreign currency translation reserves,
offset by a dividend received from Ukash of
R11 million and share of net losses incurred of
R57 million.
The net movement in current assets mainly comprised
growth in cash resources of R243 million, an increase
in accounts receivable of R643 million, offset by a
decline in inventories of R552 million.
The debtors collection period extended from 38 days
reported at the interim reporting date to 40 days.
In line with the decline in inventory, the stock turn
improved from 33 days reported at the interim
reporting date to 26 days.
The net profit attributable to equity holders
of R450 million, less a dividend of R169 million,
resulted in an accumulation of retained earnings
to R2.2 billion.
Trade and other payables increased by R476 million
with credit terms averaging 55 days.
STATEMENT OF CASH FLOWS
Cash flows from operating activities totalling
R907 million, the dividend received of R11 million
from Ukash and loans recovered of R29 million were
applied to investing activities relating to the purchase
of intangible assets to the extent of R103 million,
acquisitions of R273 million, additional funding of
R86 million to Blue Label Mexico and capital
expenditure of R46 million.