Blue Label Telecoms Integrated Annual Report 2014

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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS CONTINUED
For the year ended 31 May 2014
152 BLUE LABEL INTEGRATED ANNUAL REPORT 2014
5. INTANGIBLE ASSETS
The cash-generating units to which goodwill is allocated are presented below:
2014
R’000
2013
R’000
Blue Label Distribution Proprietary Limited 36 364 36 364
Blue Label Engage Proprietary Limited 2 742 2 742
Cellfind Proprietary Limited 21 406 21 406
Retail Mobile Credit Specialists Proprietary Limited1 205 749 —
Crown Cellular2 62 113 62 113
Panacea Mobile Proprietary Limited 6 883 6 883
TicketPros Proprietary Limited 5 104 5 104
Datacel Group 83 023 83 023
423 384 217 635
1Retail Mobile Credit Specialists Proprietary Limited was acquired in the current year (refer to note 26.1).
2 Crown Cellular Proprietary Limited was deregistered and the business divisionalised into The Prepaid Company
Proprietary Limited.
Goodwill is allocated to cash-generating units for the purpose of impairment testing.
The recoverable amount, which is the higher of fair value less cost to sell and the value-in-use of CGUs, has been
determined based on value-in-use calculations. These calculations use cash flow projections based on financial
budgets approved by the board of directors for the forthcoming year and forecasts for up to five years which are
based on assumptions of the business, industry and economic growth. Cash flows beyond this period are
extrapolated using terminal growth rates, which do not exceed the expected long-term economic growth rate.
The key assumptions used for the value-in-use calculations are as follows:
2014 2013
Growth
rate
%
Discount
rate
%
Growth
rate
%
Discount
rate
%
Blue Label Distribution Proprietary Limited 4.20 15.28 4.20 14.79
Blue Label Engage Proprietary Limited 4.00 18.92 4.00 17.99
Cellfind Proprietary Limited 4.00 18.42 4.00 17.49
Retail Mobile Credit Specialists
Proprietary Limited 4.20 15.28 — —
Crown Cellular 4.50 16.78 4.50 16.29
Panacea Mobile Proprietary Limited 4.00 18.42 4.00 17.49
TicketPros Proprietary Limited 4.20 15.28 4.20 14.79
Datacel Group 2.50 21.42 2.50 21.73
The discount rates used are pre-tax and reflect specific risks relating to the relevant companies. The growth
rate is used to extrapolate cash flows beyond the budget period.
For Blue Label Distribution Proprietary Limited and Blue Label Engage Proprietary Limited if one or more of
the inputs were changed to a reasonable possible alternative assumption, there would be no impairments
that would have to be recognised.