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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
181
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
2014
R’000
2013
R’000
23.
CASH GENERATED/(UTILISED) BY OPERATIONS
Reconciliation of operating profit to cash generated
by operating activities:
Operating profit
722 856
645 671
Adjustments for:
Depreciation of property, plant and equipment
36 976
36 911
Amortisation of intangible assets
95 004
78 930
Impairment of property, plant and equipment
129
3 408
Impairment of intangible assets
1 073
—
Discounting of receivables recognised in revenue
117 443
127 771
Discounting of payables recognised in changes in inventories
of finished goods
(143 883)
(143 329)
Impairment of loans
1 761
8 400
Profit on disposal of property, plant and equipment
(287)
(789)
Net profit on disposal of subsidiaries
—
(120)
Net profit on disposal of joint ventures
—
(2 273)
Equity compensation benefit expense
11 069
16 180
Net unrealised forex profit
(16 458)
(8 037)
Changes in working capital (excluding the effects of
acquisitions and disposals):
Decrease/(increase) in inventories
552 305
(1 319 938)
Increase in trade and other receivables
(669 602)
(155 979)
Increase in trade and other payables
423 461
448 236
(Increase)/decrease in loans receivable
(3 209)
3 570
Decrease in starter pack assets
370
4 004
1 129 008
(257 384)
24.
TAXATION PAID
Balance outstanding at the beginning of the year
36 071
13 938
Taxation charge
208 996
215 075
Disposal of subsidiaries
—
(45)
Acquisition of subsidiaries
3 726
1 437
Translation differences
68
173
Balance outstanding at the end of the year
(25 323)
(36 071)
223 538
194 507