155 / 280
BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
153
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
5.
INTANGIBLE ASSETS (continued)
For the remaining balances of goodwill, the discount rate used when calculating the value-in-use calculations
would need to be increased by the following amounts before any impairments would need to be recognised:
Increase in
discount
rate
%
Cellfind Proprietary Limited
0.90
Retail Mobile Credit Specialists Proprietary Limited
7.10
Crown Cellular
21.40
Panacea Mobile Proprietary Limited
7.60
TicketPros Proprietary Limited
26.20
Datacel Group
4.50
The valuation of the goodwill balances did not result in goodwill impairment charges for the year (2013: nil).
2014
R’000
2013
R’000
6.
INVESTMENTS IN AND LOANS TO ASSOCIATES
AND JOINT VENTURES
Cost and share of reserves at the beginning of the year
396 721
224 551
Acquisition of associates and joint ventures
89 316
138 174
Share of losses from associates and joint ventures
(56 873)
(47 326)
Share of results after tax
(53 558)
(43 150)
Amortisation of intangible assets
(4 604)
(5 800)
Deferred tax on intangible assets amortisation
1 289
1 624
Foreign currency translation reserve
26 099
79 722
Equity compensation benefit
164
77
Dividends received
(11 118)
(750)
Disposal of joint ventures
—
2 273
Cost and share of reserves at the end of the year
444 309
396 721
Loans at the beginning of the year
127 441
132 920
Loans granted to associates and joint ventures
99 217
94 161
Disposal of joint ventures
—
(1 110)
Loans impaired
—
(2 039)
Loan granted to joint venture capitalised**
(89 316)
(112 822)
Unrealised foreign exchange profit on loans to associates
and joint ventures
16 458
16 331
Loans at the end of the year
153 800
127 441
Closing net book value
598 109
524 162
** On 10 September 2013, a loan of R85.8 million was advanced to Blue Label Mexico S.A. de C.V. (BLM). This loan was capitalised
on 18 December 2013. The difference of R3.5 million relates to foreign exchange movements.